We had a new employee start working with us on Monday 21st and they left yesterday. Because they were only with us for 2 days I have looked to see what I need to do regarding pay and I have come across this on the Government website, but I can’t seem to make the required change in Sage. It won’t let me change the Tax Code to just OT and also I don’t have IO in the dropdown for pay frequency.
Employees you only pay once
You operate PAYE differently for employees you only pay once.
Set up a payroll record with their full name and address. If you give them a payroll ID, make sure it’s unique.
When you send your Full Payment Submission (FPS):
- use tax code ‘0T’ on a ‘Week 1’ or ‘Month 1’ basis
- put ‘IO’ in the ‘Pay frequency’ field
- do not put a start or leaving date
Give your employee a statement showing their pay before and after deductions, and the payment date, for example a payslip or a letter. Do not give them a P45.