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If the employee has been incorrectly terminated and you have not issued a P45 you are able to delete the P45 termination record if you have created one, remove the termination date on the employee record and continue paying them as usual, this will update HMRC on the next FPS submission.

Note

If you have issued the employee with a P45, even if they have not actually left then you will need to treat them as a new starter.

If you are reinstating a terminated employee you will need to create a new employee record to ensure that all payroll information from their previous employment with your company is kept separately.

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