When an employee leaves your company, you need to make them a leaver in SelectPay and provide them with a P45. When you submit the next full payment submission (FPS), you send the details to HMRC.
Considerations
Before you can process an employee as a leaver, there are a few things you need to consider:
You need to process all payments before you produce the P45, to ensure it contains the correct year-to-date values.
If the leaver is receiving parental pay, you need to enter a finish date in the Parental Pay tab. You can then process them as a leaver in the following period.
If the leaver is a director, to ensure their NI contributions are recalculated on a cumulative basis, you need to process pay for them when you make them a leaver.
If you process zero pay when you make the employee a leaver, they may receive a tax refund.
Process an employee as a leaver
Click Employees, then click Records.
Select the relevant employee, then click More.
Click Leaver Wizard, then enter the leave date and reason for leaving.
If required, select the Deceased check box, then click Next.
If required, select the Process Pay This Period check box.
Click Next, then select the Download P45 check box.
Click Complete.