I marked an employee as a leaver at the end of the tax year but need to pay their redundancy and notice. How do I go about it?

Welcome to the Online Community, forestofmercia.

In QuickBooks Online, you’ll no longer be able to add the employee (leaver) back to payroll once the FPS is already submitted to the HMRC. To pay the redundancy, we’ll have to set up the worker again.

There’s no need to enter the year to date data since its still part of the tax year. Setting up the worker’s information is a breeze.

Here’s how:

1. Go to the Employees menu on the left panel and choose Employees to select the Add an employee button.
2. This will open the pop-up window where you’ll have to key in the legal name of the worker.
3. Next, tap the Add my employee menu.
4. On the Basic info page, enter all the employee’s information and then hit Save and next.
5. Follow the on-screen instructions to complete the process.

After adding the employee, you can now create a paycheque. For additional information about calculating the worker’s statutory redundancy pay, check out this article: Making staff redundant.

We'd advise confirming with HMRC that they are happy with creating the employee with a new id and what they would like you to do regarding the P45.

Also, the Process a leaver in QuickBooks Online Standard Payroll guide provides an overview of the tasks you’ll have to accomplish to keep the payroll records correct.

Let me know if you have any clarifications or questions. I’ll get back to answer them for you. Have a good one.