Xero payroll tip
Our 15 strong team of Xero Certified advisors recently came across a situation where Xero’s new payroll solution produced an unexpected result and an incorrect P45 was produced when an employee left.
Even though the correct leave date was entered for an employee, because the P45 was produced after the payrun had been ‘posted’ it included standard pay for the following month.
We have discovered through discussions with Xero support that all leavers must be identified as such before a payrun is finalised and posted.
It can be a common occurrence with different organisations that leavers are identified after a payrun has been completed.
If that happens on a Xero payroll the solution is to revert that payrun back to draft and reset their payslip which will then pull through the leave date information.
You can then re post the pay run and the leaver information will be reported to HMRC in the RTI submission.
Please note, when you re post, you'll be prompted to provide an updated reason to HMRC. If you select the 'Correction to previous submission' option, this will inform them that corrections have been made and the RTI will be updated.
To revert a payrun on Xero:
- Go to payroll, then click pay runs.
- Click on the pay run you want to revert.
- Click on pay run options & click on revert pay run.
- Click yes to confirm.
You can then update the payslips and enter P45 details and process the pay run as usual. Your EPS may be amended and resent to HMRC.
If you would like more information on this or if you have any other questions on Xero please don’t hesitate in contacting us today on either 02476 518 555 or 0121 7111 2468.