P45 Process

You can run this process to generate P45s for employees who leave work. Depending on the applicable delivery preference, the process generates paper output, posts the P45 to Documents of Record, or does both.

You can also generate a P45 when you end-date or delete assignment associations for a Pay As You Earn (PAYE) component.

Use the Submit a Flow task in Payroll to run the P45 process. If you load termination data using HCM Data Loader, the application can also generate a P45, subject to the applicable eligibility and processing requirements.

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.

To use online P45 delivery:

Configure the P45 document type in Documents of Record.
Set the default P45 delivery preference at the organization level. You can override the preference at the department, location, or person level.
To allow former employees to view online P45s, assign them the temporary Leaver role or provide equivalent access to Documents of Record.

When you hire an employee using automatic calculation card creation, the default P45 action is derived from the value set at the legal employer or 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	The application doesn't generate a P45. You issue the P45 manually. When automatic calculation card creation is enabled, you can set the default at the legal employer or tax reporting unit level.

P45 Delivery Preferences

P45 delivery preferences replace the Output Destination parameter. They control how the P45 process produces output.

Set the default delivery preference at the organization level. You can override it at the department, location, or person level. More-specific preferences override less-specific preferences. The default parameter is Paper.

Delivery preferences	Live run result	Test run result
Paper	Generates the P45 in consolidated paper output only. No document is posted to Documents of Record.	Generates paper output only.
Online	Posts the P45 to the person's Documents of Record.	Generates paper output only. The process doesn't post a document to Documents of Record.
Paper and Online	Posts the P45 to Documents of Record and includes it in consolidated paper output.	Generates paper output only. The process doesn't post a document to Documents of Record.

Delivery preferences are evaluated only for Live runs. Test runs always generate paper output, don't update P45 records, don't post documents to Documents of Record, and don't send email notifications.

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	Latest date on 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. The process generates paper output, but doesn't save updates. Live mode updates the records, preventing them from being included in a subsequent P45 process. Use Test mode to verify 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.
Delivery Preference	Set the default preference at the organization level; you can override it at the department, location, or person level.

Process Results

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

The P45 Filed Date appears in the PAYE component of the employee's Statutory Deductions calculation card.

The application generates output according to the applicable delivery preference.
For Online and Paper and Online, the application posts the P45 to the person's Documents of Record.
For Online and Paper and Online, the application sends email when P45 email is enabled for the environment and the employee has a valid home email address.
For Paper and Online, the application also includes the P45 in consolidated paper output.

If you load termination data using HCM Data Loader, the application can also generate a P45, subject to the applicable processing requirements.

Errors and Warnings Report

If errors occur during the archive process, select Go to Task for the archive task on the checklist, and then select the Errors and Warnings tab.

Correct the employee's personal or employment information, or the information on the Statutory Deductions calculation card, and rerun the process.

If the archive process has errors, the process doesn't produce an audit report or P45 output. Errors occur when information doesn't meet HMRC standards. For example, names and addresses must use the approved HMRC format and character set.

If the process completes successfully, select Go to Task for the archive task. On the Processes and Reports tab, select View Results to access the audit report and printable P45 output.

The process generates a P45 for employees who meet one of these conditions:

They are terminated, have a payroll run on or after the termination date, and have an applicable P45 action.
They are terminated, have a payroll run in the period before the termination date, and have an applicable P45 action.
They aren't terminated, but have no associations to one or more PAYE components.

When you reverse an employee termination, roll back the P45 process for the relevant PAYE components first. The Reverse Termination flow doesn't roll back the P45 process.

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 output and delivery

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

When the delivery preference is Online or Paper and Online, the application also posts the P45 to the person's Documents of Record. A Paper delivery preference doesn't create a Documents of Record entry.

To access paper output, open the completed flow and select View Results for the applicable process.

Former employees require the temporary Leaver role, or equivalent access, to view P45s in Documents of Record.

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

You can regenerate a P45 for selected employees when the P45 process completed successfully but you need to correct employee information.

In the Run P45 Process flow, search for and select the individual record you want to mark for retry.
Select Actions > Mark for Retry. The Status will change to Marked for Retry.
Refresh the page to confirm the status.
Repeat these steps for other employee records, as required.
Rerun the P45 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:

Select Submit a Flow.
Select a Legislative Data Group for which the process will be run
Select the Run P45 Selective Print Process flow

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

Set Up P45 Delivery and Email Notifications

The email delivery option sends P45 as an attachment when all these conditions are met:

The P45 document delivery preference is set to Online or Both.
A valid home email address has been entered for the employee.
The Output Control lookup enables email delivery for live P45 runs on that pod.

The P45 remains available in Documents of Record when the delivery preference is Online or Paper and Online.

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

Note: If you don't 't wish to send P45s by email or have already configured it for your LDG, you can set a past effective end date on the overriding P45 email delivery option. This will prevent the application from using it to send emails.

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.

Go to Extract Definitions.
Search for and select UK P45 Archive Process. Ensure that you search for the process name within your Legislative Data Group.
Select Edit.
Under Hierarchy, select Extract Delivery Options.
Under Extract, select P45 Email.
Select View > Columns > Overriding Delivery Mode.
Select Save.
Add the new overriding P45 Delivery option to the Extract Definition for P45 Archive Process:
1. Under Extract Delivery Options, Select 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.
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.
Select Save and Close.
The new Delivery option is now be available in the Extract Delivery Options.
Select 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 inadvertently sending P45 emails 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 lookup code P45_EMAIL_LIVE_ENV for the lookup type ORA_HRX_GB_OUTPUT_CONTROL. The meaning of the lookup code you enter decides the environment that can send P45 emails. The meaning for the lookup code P45_EMAIL_LIVE_ENV can start with P45: You can enter the meaning as P45:<POD>, for example, P45:TEMP.