How do I calculate irregular late payments to leavers?

Modified on Tue, 10 Dec at 3:07 PM

When an employee is made a leaver on the payroll, HMRC will be notified when the RTI data is submitted each pay period. You need to give the employee a P45 form for their records, which shows the total pay and tax in the employment tax year.

If an employee leaves and there is an irregular payment required to be paid, their National Insurance Contribution payment can be calculated on a weekly basis instead of on a monthly basis.

To make a late payment to a leaver

Create a Leavers Irregular Late Payment: When selecting a leaver record and clicking the Irregular Payment to Leaver button, a confirmation message appears stating: If you are making a late "Irregular" payment then NICs will be calculated on a weekly NIC earnings period. Please confirm if payment is "Irregular". Go to Cintra iQ: Employment record> Tax & NI window> National Insurance tab> Irregular Payment To Leaver button.
Create a new Leavers Irregular Late Payment period: If an employee is leaving in the current period and you need to pay an irregular payment and apply a weekly NIC basis, navigate to the Leavers Irregular payment period(s) window and right-click: New. The period automatically appears in the window. Go to Cintra iQ: Employment record> Payroll Membership> Payroll Membership History.