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October 2008 Can’t
read this? You
can also access the Newsletters online at www.teamspiritsoftware.co.uk/newsletters alternatively
available as a PDF on request. Thank
you. TeamSpirit Newsletter Welcome
to the fourth in our series of new look Quarterly TeamSpirit Newsletters, we
hope you enjoy this newsletter as much as the previous issues. Each
newsletter will cover topical HR and Payroll news items and issues and will
provide you with related hints and tips to ensure that you get the most from
your TeamSpirit Software. Please
email any comments regarding this and future issues of the newsletter to newsletter@teamspiritsoftware.co.uk
and we will try to accommodate your suggestions and requests wherever possible. Payments to Leavers A common
scenario which occurs when an employee leaves a company is that the payroll
department processes what it believes to be the final payment, produces the
P45 and issues it to the employee, and the HMRC, only to discover two pay
periods later that further payments in the form of overtime or bonuses are
due. TeamSpirit
can handle this very simply by changing the status of the employee in
question from a capital ‘L’ to a lower case ‘l’ in the ‘Payroll Input’
screen:
You will
then need to open the ‘Payments to Leavers’ tab under Payroll Input Option
21:
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October 2008
For leavers in the same tax year Issue
the payment to the leaver with a covering letter explaining what you have
done and advising them to declare figures to the HMRC at tax year-end. Although it is not essential the HMRC would
appreciate a copy of this letter. DO
NOT produce a further P45. For leavers spanning tax year-end A good
example of this is if an employee left towards the end of March and their P45
was issued at the same time, but a further payment to cover overtime or a
bonus needed to made after 5 th April. In this
instance you will need to: •
Re-input employee details as if a NEW starter, i.e. a different
employee code number (EMPCODE) •
Set tax code to BR Week1/Month1 •
Set pay frequency to ‘W’ •
Set status to lower case ‘l’ •
Set leave date to next available weekly payroll run •
If contracted out i.e. NI Table letters D,E,F
or G, look at leaving date. If more
than 6 weeks ago change to Table letter ‘A’ or ‘B’. If less than 6 weeks, leave as is •
Input payment details •
Run payroll in next available week •
Update payroll •
Issue payment to ex-employee •
DO NOT issue a further P45 •
Send a covering letter to employee explaining the action taken and
advise them to declare the payment to HMRC at tax year-end •
It is not essential but HMRC would appreciate a copy of this letter •
All necessary figures will be picked up in end of year P14/P35
processing You have been sent this newsletter because you are either a
current or prospective TeamSpirit client. You can choose, at any point,
to stop receiving TeamSpirit news, but we hope you will try a few issues
before you decide. We never
divulge your email details to any company outside of Bond International
Software (UK) Limited, without your permission. The above information is provided without
charge, and no responsibility can be accepted for actions taken or not taken
as a result of its contents.
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