1. Administering Payroll for the United Kingdom
  2. P45 Process

P45 Process

You can run this process when required to generate P45, which contains details of employee leaving work in paper forms to distribute to terminated employees. You can also generate P45 if you end-date or delete the assignments associated with the PAYE component.

Use the P45 process to issue a P45 when final pay is in or after the period of termination. This process archives employee data, validates the data to ensure that it conforms to HM Revenue and Customs (HMRC) standards, generates the paper forms, and produces an audit report of the process results.

Use the Submit a Process or Report task in Payroll to run the P45 Process.

Note: If you load termination data using the HCM Data Loader, this also generates P45, subject to other restrictions.

Before You Start

Before you generate the P45 for an employee, you must have completed one or all these payroll actions:

  • Terminated employee using a termination flow.

  • Terminated all payroll terms associated with a Pay As You Earn component on the employee's Statutory Deductions calculation card

  • Ended all current and future assignment associations for a Pay As You Earn component on the employee's Statutory Deductions calculation card.

You can specify the P45 Action in the Pay As You Earn component details section of the employee's Statutory Deductions calculation card. Even if an eligible payroll action has occurred, the process generates a P45 only if the P45 Action matches one of these values, and payroll processing meets the requirements defined for that setting.

Note: When you hire an employee by selecting the option for automatic calculation card, the default value for this field is derived from the value specified at the legal employer or the tax reporting unit level.

P45 Action

Payroll Processing Requirement

Do not issue

No P45 is issued to the employee
Issue when final pay in or after the period of termination

Generates a P45, provided that a payroll run has successfully completed in or after the period of termination.

Issue when final pay in previous period

Generates a P45, provided that a payroll has run successfully.

Manual issue

P45 is issued to the employee manually. In this case, the application doesn't generate the P45. When you hire an employee with the automatic card creation option enabled, you can specify the default value for this field at the legal employer or the tax reporting unit level.

Process Parameters

Parameter

Description

Payroll Flow

Identifier for the payroll flow

Payroll Statutory Unit

Legal entity for which you want to run the process

Tax Reporting Unit

Legal reporting unit for which you want to run the process

Start Date

Earliest date for which an eligible payroll action must have occurred to be included in the P45 process.

Effective Date

Last date for which an eligible payroll action must have occurred to be included in the P45 process.

Submission Type (Test Indicator)

Indicates whether to run the process in Test or Live mode.

Test mode leaves the records unlocked, so they will be included if you run the process again. P45 is generated, and updates aren't saved. This will not generate emailed P45s.

Live mode updates the records, preventing them from being included in subsequent P45 processing. P45 is generated, and updates are made in the application.

Use the Test mode until you've verified the results, and then rerun the process in Live mode.

Payroll

List of payrolls. If specified, the process only considers employees for P45 if there's at least one PAYE component associated with this payroll.

Output Destination Email: If selected, there must be a valid home email address for the employee.

Test submission will not produce emails but send the output to paper only.

Live submission will produce a 3-Part Plain Paper password protected email, where there's a valid home email address. If there's no valid home email address, an error is raised.

  • Paper: Output is generated only to paper. This is the default option.
  • Paper and Email: P45 is sent to both the home email address (if present and valid) and the paper output.

Process Results

The payroll flow page displays the process results. If you run the P45 process in the Live mode:

  • The P45 Filed Date is displayed in the PAYE component of the calculation card
  • The Emails containing the P45s are produced

  • If you load the termination data using the HCM Data Loader, the application will also (subject to the other constraints) raise a P45.

Errors and Warnings Report

If errors occurred during the archive process, select Go to Task for the archive task on the checklist, and then click the Errors and Warnings tab to view the errors. Make all necessary corrections in the employee's personal or employment information, or on their Statutory Deductions calculation card, and then rerun the process.

Note: If the archive process has errors, the process doesn't produce an audit file or forms. Errors occur if data to be included in the process don't meet HMRC standards. For example, names and addresses must be in the correct format and use only characters from the approved HMRC character set.

If the process completed successfully, click Go to Task for the archive task on the checklist. Click the View Results icon on the Processes and Reports tab to access the audit report and printable forms. The process generates P45 for employees that are:

  • Terminated, have a payroll run on or after the termination date, and have a P45 Action set accordingly

  • Terminated, have a payroll run in the period before the termination date, and have a P45 Action set accordingly

  • Not terminated but have no associations to one or more of their PAYE components

Note:
  • When you perform a reverse termination for an employee, it's recommended to first roll back the P45 process for the relevant PAYE components. The Reverse Termination flow doesn't trigger the P45 rollback process.
  • When using the email option, the P45 is produced as a password protected PDF file. The password is the employee’s date of birth in the format YYYYMMDD.

Audit Report

The audit report lists each employee for which the process generated a P45, and provides the employee name, works number, NI number, and termination date. Use this report to verify process results before distributing the forms:

  • Verify that the information in this report is accurate for each employee. Make any necessary updates to the employee data to correct inaccuracies.

  • Verify that the process produced a P45 for every eligible employee. If the process didn't include an eligible employee, verify that all requirements listed in the Prerequisites section are met. Make any necessary corrections based on these requirements.

  • If you make data corrections, rerun the process in test mode.

  • Once the process results are complete and accurate, rerun the process in Live mode.

The P45 contains a Tax Week or Tax Month value. This value is determined from the period in which the relevant PAYE balances were last modified and the P45 Action setting. It is therefore not necessarily related to the latest payroll run that was completed for the employee.
Note: If you discover errors after running the process in Live mode, you can roll back the entire process and rerun after making corrections.
P45 Paper Forms

The process produces three files including printable P45s in different formats:

  • 3-part PDF file for use with preprinted forms

  • 3-part PDF file for printing on plain paper

From the View Results window, print the P45 output file for the desired format, and then distribute the forms to employees.

Note: The P45 contains a Tax Week or Tax Month value. This value is derived from the period in which the relevant PAYE balances were last modified, and the P45 Action setting. Hence, it's not necessarily related to the latest payroll run that was completed for the employee.

Retry P45 for Completed Records

Even if the process completed successfully, you might have changes required to one or more individuals that would require regenerating the P45 for those selected employees. To retry the P45 process, you must first correct the data for the records you want to update.

  1. In the Run P45 Process flow, search for and select the individual record you want to mark for retry.
  2. Click Actions > Mark for Retry. The Status will change to Marked for Retry.
  3. Refresh the page to ensure that the individual is marked for retry. Repeat this for any other records to be retried.
  4. You can now retry the process for the selected records.

Run P45 Selective Print

You can reprint one or more P45s that have already been generated. To reprint the P45s:

  1. Select Submit a Flow.
  2. Select a Legislative Data Group for which the process will be run
  3. Select the Run P45 Selective Print Process flow
  4. Enter the required parameters:

    Table Listing the Parameters and Descriptions for the P45 Selective Print Process.

    Parameter Description

    Payroll Flow

    Identifier for the payroll flow

    Payroll Statutory Unit

    Legal entity for which you want to run the process

    Tax Reporting Unit

    Legal reporting unit for which you want to run the process
    Payroll List of payrolls. If specified, the process will only consider employees for P45 if there's at least 1 PAYE component associated with this payroll.

    Start Date

    The date on or after which the employees are considered.

    Effective Date

    Last date for which an eligible payroll action must have occurred to be included in the P45 process.
    Original P45 Flow Name A list of previously generated P45 flow names from which to reprint some or all the P45s
    Payroll Relationship Group This can further limit the output from the archive specified in the Original P45 flow name

Setup to Email P45 Output to Employee’s Home Email Address

The Email setup might already exist for your environment. You can check this in Reports and Analytics > Administration > Email.

If you need to set up the emailing of P45, you need to first add your own delivery options as an override to the predefined extract definition.

  1. Go Extract Definitions.
  2. Search for and select UK P45 Archive Process. Ensure that you search for the process name within your Legislative Data Group.
  3. Click Edit.
  4. Under Hierarchy, select Extract Delivery Options.
  5. Under Extract, select P45 Email.
  6. Click View > Columns > Overriding Delivery Mode.
  7. Click Save.
  8. Add the new overriding P45 Delivery option to the Extract Definition for P45 Archive Process:
    1. Under Extract Delivery Options, click Add.
    2. Enter the Delivery Option Name. For example, Overriding P45 Email.
    3. Enter the output type as PDF.
    4. Enter the report as a copy of the other report values in this view.
    5. Enter the Template Name as the BIP template name given to the report, that is, P45_EMAIL.
    6. Enter the delivery type as E-Mail.
    7. Enter the Overriding Delivery Mode as P45 Email.
  9. Search for the attribute value Email Address. This is a record in the archive that's used to get the employee’s email address. Add details for the Overriding Email delivery option such as email address, subject, message body.
  10. Click Save and Close.

    The new Delivery option is now be available in the Extract Delivery Options.

  11. Click Submit to validate the changes.

Note: You can restrict the P45 process to send output only from the Live application. This enables you to stop inadvertent P45 emails being sent out from a testing or a staging application while testing the email option. To set this option that restricts the output to be sent only from the Live environment, use the new lookup code P45_EMAIL_LIVE_ENV for the lookup type ORA_HRX_GB_OUTPUT_CONTROL. The lookup ORA_HRX_GB_OUTPUT_CONTROL can start with PAE. You can use it as PAE:<POD>, for example, PAE:TEMP.