Terminating an Employee and Issuing a P45

Terminating an Employee

Terminating an employee in Buddy is necessary to issue the employee's last payslip including the correct hours, pro-rated Allowances and Holidays paid off.

To terminate an employee,

1. Go to People
2. Edit the employee you want to terminate
3. Click on the Role page
4. On the right-hand side click on the Add Termination Date button
5. Input the termination date (this is their last day of work)
6. Click Save Termination Date

Choose your employee's termination date. If payslips were issued that include pay after the date of termination they are not automatically updated/calculated. Additional final pay may be due

P45 Form and FPS Indication

It is important that the termination date is added BEFORE the payslip is last finalised and saved.

If you are unsure, check the Audit Logs and confirm the payslip has been saved after the termination date is added.

FPS

When submitting the FPS, Buddy will inform HMRC that this is employee's final payslip.

P45

A P45 will be automatically generated when the payroll is concluded, as long as the termination data has been saved into the payslip.

Note: If you send payslips via .pdf, the P45 will automatically be included with the final payslip (see: Sending Payslips to Employees).

Dealing with Late Termination

In case you have already finalised payroll and added the termination date after, here are two possibilities you can do:

• Re-Save Final Payslip
  • Add the Termination Date
  • Re-Open the Payroll
  • Edit the employee's final payslip
  • Save and calculate the payslip
  • Conclude Payroll
  • This may require you to re-submit FPS*
• Generate Nil Payslip in Next Period
  
  • Use the Pay an Already Terminated Employee feature to create an extra payslip
  • Save this with Nil Values
  • Conclude Payroll

Using these methods, you should be able to generate a P45 for anyone whose termination date has been informed after their final payslip has been issued.