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Administrator Guide
Last Updated: 2023-06-23
Troubleshooting: Retro Termination Errors When Crossing a Tax Year (UK)

Troubleshooting: Retro Termination Errors When Crossing a Tax Year (UK)

Attempting to apply retro termination from a previous tax year to the current tax year.
Use recalculated amounts in retro results for the last pay period of the tax year to submit an update to previous tax year amounts to HMRC.
  1. Identify the retro calculation values for the terminated worker.
    To find the values for:
    • 1 worker, display their retro results.
    • Multiple workers, run the
      Retro Calculation Processing Report
      .
      Security:
      Reports: Pay Calculation Results for Pay Group (Results)
       domain in the Core Payroll functional area.
  2. Cancel the worker's retro result. From the worker's related actions menu, select
    Retro Pay Calculation
    Cancel
    .
  3. Access the
    Run On Demand Payment for Worker
     task.
    Run an on-demand additional payment for the worker for the last pay period of the previous tax year. Use the worker's termination date as the
    Sub-Period Target Date
     and
    Payment Date
    .
    Adjust the affected pay components using the retro results in error from step 1.
    Security:
    Process: Off Cycle (On Demand)
     domain in the Core Payroll functional area.
  4. If necessary, to be able to complete the on-demand additional payment, use a net pay adjustment to set the net pay to zero.
  5. Access the
    Add Worker UK RTI Details
     task.
    Enter the
    Late PAYE Reporting Reason
    :
    H. Correction to earlier submission
    .
    Security:
    Worker Data: Payroll (Company Specific) - UK
     domain in the UK Payroll functional area.
  6. Send the off-cycle payment details to HMRC.
    • For the 2020-2021 tax year onwards, submit an FPS.
    • For the 2018-2019 and 2019-2020 tax years, submit an EYU.
  7. For the 2020-2021 tax year onwards, submit an EPS to HMRC.
  8. Access the
    Change No Retro Prior To Date
     task.
    Enter the period begin date for the first pay period of the tax year as the worker's
    Proposed Value of No Retro Processing Prior To
     date.
    Security: Configure the
    Change No Retro Prior To Date
     business process and security policy in the Core Payroll functional area.
  9. Access the
    Run Retro Pay Calculation
     task.
    Recalculate the worker's payment.
    Security:
    Process: Run Batch Calculations (Retro Calculation)
     domain in the Core Payroll functional area.
  10. Generate any required forms.
    HMRC guidance says you:
    • Don't need to create a new P45 because the termination is in a previous tax year, out of date, and can't be used for a new employment.
    • Can give the worker a letter showing the amendment as a statement of earnings.