How to Process a Payment After Leaving

It may be necessary to make a payment to a payee after a payee has left employment and received their P45. This is known as a payment after leaving.

To make a payment after leaving, follow these steps:

Step	Description

Step	Description
1	The period in which the payee was originally terminated must be closed. If you have terminated a payee and not yet closed the period, you will not be able to make a further payment to them within the same pay period.
2	Create an adjustment batch for the period the payee was terminated in.
3	Enter the pay amount needed to pay the payee. This could be a manual payment or it could be from a timesheet.
4	At the HMRC deduction stage, the system will automatically apply the tax code 0T Week1/Month 1 and apply the relevant NI category. If you are running a monthly payroll and the payee is being paid an irregular payment, the frequency for calculating the National Insurance will automatically change to weekly frequency.
5	Close the pay batch. The pay batch close will generate the FPS data that contains the details about the payment after leaving to HMRC. The payment after leaving will not be added to the P45 details as these have already been issued to HMRC and the payee.