Managing Termination and Rehire within a Pay Period

This topic discusses how you process an employee who is terminated and then rehired within the same pay period.

To illustrate this, consider the example of an employee who leaves on June 5, and is then rehired on June 20. If the employee is paid monthly the termination and rehire are processed within the same pay period. To process the June payroll correctly you need to ensure that the new period of employment starting on June 20 has the correct P45 information on the Maintain Tax Data GBR page. However, you have not run the payroll for June and therefore you have not generated a P45 for the employee's termination.

To process an employee terminated and rehired within a pay period:

1. Run the payroll for the pay period, but do not finalize it.

2. Run a draft P45 report for the employee.

   This provides you with the total tax and pay for the tax year.

3. Add a new row to the employee's tax data with an effective date that matches the rehire date.

   Navigate to the Maintain Tax Data GBR page as follows: Global Payroll & Absence Mgmt > Payee Data > Taxes > Maintain Tax Data GBR. Select P45 in the Notification Source field, and enter the pay to date and tax to date values from the draft P45. This ensures that the calculations for the new period of employment are correct.

4. Rerun and finalize the payroll for the pay period.