Where the employee has been reported to HMRC as a leaver, there are steps you must follow to ensure a payment after this notification is processed correctly and in accordance with HMRC guidelines.
Firstly, you must change the employee’s status back to current. To do this, navigate to HR Record > HR Record > Leaver to open the leavers wizard. You must follow the wizard to the last window entitled HR record status and switch the status to current.
Select mark employee as leaver for RTI submission in RTI Requirements, found within the Leaver wizard.
You must change the tax code as per HMRC advice for Payments after Leaving, within Payroll Details > NI & PAYE. You must also select the tick box Payment is after date of notification of contract ending, as per the below screenshot in Payroll Details > Payroll Details > RTI.
You can then make the necessary payments or adjustments to the employee’s record. It may be necessary to reopen the employee’s employment history record in order to ensure that the payments are posted to the correct Finance account. Also it maybe necessary to re open the employee’s pension record. As long as the employee’s leaving date hasn’t been amended/cleared, then the next period end will close the employee’s records with their existing leave date and set them back to a leaver