How to process leavers in Shape Payroll

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When one of your employees leaves you will need to pay them any holiday pay you owe them, issue them with a P45 and inform HMRC that they have left your employment.

Normal process

You should start the process before you complete the final pay run for your employee. This can be up to 30 days before your employee is due to leave.

From the employee’s screen open the drop-down action menu by clicking the hamburger in the top right of the screen. Select ‘End Employment’ and enter a leaving date and select ‘I need to make a final payment to this employee’.

Click ‘End Employment’

When you complete the final pay run the employee will be marked as a leaver. If your employee has not taken all the holiday that they have accrued during their employment, you will need to pay this to them as part of their final payment.

Leaver Final Payment

After you complete this pay run a P45 will be generated for your employee and you can download this from the employee’s screen. You will need to give this to your employee as they will need to present it to their new employer.

When you submit RTI for the final pay run your employee’s leaving date will be included.

What if my employee has already left?

If your employee has left your employment, for example they are a casual worker who does not return, you should still check you do not owe them any money and if so, follow the process above.

If you are confident you do not need to pay your employee again you can select ‘I will not pay this employee again’ on the leaver form.

In this case a P45 will be generated immediately for you to issue to your employee.

Your next RTI submission will include a zero payment for this employee showing the leaving date. This is to notify HMRC that the employment has ended.