Step-by-Step Guide for Bureaus

When processing payroll for clients, it’s not uncommon for a bureau to be informed months later that an employee actually left the company some time ago. Often, the client continues to send information as if the employee is still active, and only later confirms that the employee’s employment ended in a previous tax period.

This article explains how to correct the situation in BrightPay where:

• The employee left in an earlier period,
• The bureau was not informed at the time, and
• FPS submissions have continued to be sent to HMRC showing pay for that employee (including periods where in reality no pay was due).

The steps below outline how to correct the payroll records and update HMRC accordingly.

Scenario

A client informs you that an employee left the business several months ago, but the bureau has continued to process and submit payroll as if the employee was still employed. In some or all of these later periods, the employee did not actually receive any pay.

Step-by-step correction process in BrightPay

1. Start with the most recent pay period

1. Open the most recent pay period in which the employee incorrectly appears as paid.
2. Reopen the employee’s payslip for that period.
3. Change the pay for that employee to zero if they were in fact not paid.
4. Once updated, send an Additional FPS for that pay period to HMRC to notify them that the employee had no pay in that period.

2. Work backwards through previous pay periods

1. Move to the previous pay period.
2. Reopen the employee’s payslip.
3. Again, change the pay to zero if the employee was not actually paid in that period.
4. Send an Additional FPS to HMRC for that period.
5. Repeat this process for each period, working backwards, until you reach the final pay period in which the employee was genuinely paid.

3. Correct the final period of genuine pay and enter the leave date

1. In the last period where the employee was correctly paid, reopen the payslip.
2. Adjust the pay if necessary so it reflects the actual final payment due to the employee.
3. Enter the employee’s correct leave date in this same period (ensure the leave date falls within this pay period).
4. Submit the FPS for this period to HMRC with the updated leave date.
5. Generate the P45 as normal for the employee.

4. After the corrections

• Following these corrections, the employee will no longer appear as active in any periods after the corrected leave date.
• All FPS and additional FPS submissions will remain visible in the RTI section of BrightPay, providing a clear audit trail of the changes made and what was reported to HMRC.

By following this process, you ensure that:

• HMRC records are brought into line with the actual employment and payment history,
• The employee’s leave date is correctly recorded, and
• Your bureau maintains a clear and accurate audit trail within BrightPay.