Difference between revisions of "How do I deal with redundancy in the payroll?"
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(New page: {{Review}}{{Incomplete}} == Summary == The following article explains how to post redundancy on you payroll system. {{Note|text='''PLEASE NOTE :''' Regarding the tax rules on the redund...) |
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== Summary == | == Summary == | ||
− | The following article explains how to post redundancy on | + | The following article explains how to post redundancy on your payroll system. |
− | {{Note|text='''PLEASE NOTE :''' Regarding the tax rules on | + | {{Note|text='''PLEASE NOTE :''' Regarding the tax rules on redundancy pay, these are the guidelines as we understand them. For definitive help contact the HMRC or speak to your company accountant.}} |
− | == | + | == More Information == |
− | *Let the payroll system calculate the | + | * Let the payroll system calculate the person's wage for the final pay period in the normal way. |
− | *If it is paid redundancy, work out this amount out manually and post as a Post Tax adjustment (unless the amount is more than £30,000 , then it is both taxable and applicable to National Insurance). | + | * If it is paid redundancy, work out this amount out manually and post as a Post Tax adjustment (unless the amount is more than £30,000 , then it is both taxable and applicable to National Insurance). |
− | *Close the payroll period as normal | + | * Close the payroll period as normal |
− | *In the following week enter them as a payroll leaver using "Payroll" -> "Payroll Parameters/Maintenance" -> "Payroll Parameters" -> "Enter Payroll Leavers". | + | * In the following week enter them as a payroll leaver using "Payroll" -> "Payroll Parameters/Maintenance" -> "Payroll Parameters" -> "Enter Payroll Leavers". |
− | *Enter the employee code and the leaving date and press {{KeyPress|F7}}. | + | * Enter the employee code and the leaving date and press {{KeyPress|F7}}. |
− | *This will bring up the following message | + | * This will bring up the following message |
<pre> | <pre> | ||
“Have you closed the last period in which this employee should be paid?" | “Have you closed the last period in which this employee should be paid?" | ||
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</pre> | </pre> | ||
Because you have done this in the previous step click {{Button|YES}}. | Because you have done this in the previous step click {{Button|YES}}. | ||
− | *Once this is done the system will print a P45 then press {{KeyPress|ESC}} and press {{KeyPress|ESC}} again. | + | * Once this is done, the system will print a P45 then press {{KeyPress|ESC}} and press {{KeyPress|ESC}} again. |
− | *The employee will now disappear from any remaining payroll periods. | + | * The employee will now disappear from any remaining payroll periods. |
== See also == | == See also == |
Revision as of 10:52, 17 December 2008
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This article or section is under review. Be aware: Content may change as the document is reviewed. |
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This article or section is under development. Be aware: Content will change as the document progresses. |
Summary
The following article explains how to post redundancy on your payroll system.
PLEASE NOTE : Regarding the tax rules on redundancy pay, these are the guidelines as we understand them. For definitive help contact the HMRC or speak to your company accountant. |
More Information
- Let the payroll system calculate the person's wage for the final pay period in the normal way.
- If it is paid redundancy, work out this amount out manually and post as a Post Tax adjustment (unless the amount is more than £30,000 , then it is both taxable and applicable to National Insurance).
- Close the payroll period as normal
- In the following week enter them as a payroll leaver using "Payroll" -> "Payroll Parameters/Maintenance" -> "Payroll Parameters" -> "Enter Payroll Leavers".
- Enter the employee code and the leaving date and press <F7>.
- This will bring up the following message
“Have you closed the last period in which this employee should be paid?" YES NO
Because you have done this in the previous step click [YES].
- Once this is done, the system will print a P45 then press <Esc> and press <Esc> again.
- The employee will now disappear from any remaining payroll periods.
See also