ai automation: leaver processing

There are a lot of complex steps to follow when making someone a leaver. Here is how ai automation does it all for you!

It all starts with the leaver end date.

We will collect this automatically from a connected HR system, or you can upload it from a spreadsheet or manually enter it into the employee record. A future date will only take effect when the date falls in the pay period. That is all paiyroll® needs to determine the employee’s final pay run automation.

Then the rest of the leaver process is completely automated:

Pro-Rata Salary

If the employee is a salaried employee paiyroll® automatically calculates the final pro-rata pay.

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Depending upon the employee’s contract this might be calculated using 365 calendar days, 260 working days (5 x 52), divide-by-12 (month) then calendar days or divide-by-12 and working days. All the calculations use the employees’ working pattern, so a 2-day per week worker will result in a different calculation than a 5-day per week employee.

Allowances

Depending upon the employee’s contract, allowances may be paid in full or pro-rated. paiyroll® will work this out automatically.

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Examples include car and phone allowances.

Absences

If employees are absent in their final pay period, paiyroll® will automatically include or exclude absence days from the above calculations – again depending on the employees contract.

Holiday Pay

paiyroll® will automatically calculate leaving holiday pay based on the employee’s contract:

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  • If the employee is salaried, any holiday balance due, or claw-back for holiday taken above entitlement accrued will be automatically calculated according to their contract
  • If the employee contract includes Variable hours workers (Overtime, Commission), payroll will automatically perform a 52-week average and pay these hours
  • Irregular hours workers will automatically receive any holiday balance paid out according to a 52-week average – this is contract dependent and workers who are contracted to use holiday may not receive any pay.

Automatic Enrolment

An employee who is assessed and eligible for automatic enrollment in their final pay run will not be enrolled. If they opted out in their final pay run and due a refund, this will be automatically processed and paid.

P45s

A P45 link is automatically generated and added to the app for employees to download at their convenience.

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In line with GDPR, payslips will never be sent via email. Sharing via the app is the most secure and compliant way.

Documents and Access

The employee has 30 days to download all payslips and P45 after leaving, using self-service.

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At the end of this period, the employee’s account will be automatically de-activated. This can be manually activated if needed and stay active for 24 hours until being automatically de-activated.

HMRC

The Full Payments Submission (FPS) leaving indicator is automatically added to the FPS and sent to HMRC.

Tax and National Insurance

PAYE tax and National Insurance (NI) will automatically be calculated according to the total pay resulting from the above calculations, as will automatic enrolment (AE) pension deductions.

If you need to pay after leaving, we also automate that for you:

Tax Code

Tax codes for pay after leaving are automatically changed and submitted as 0T.

Pension Deductions

Pension deductions and employer contributions for payments after leaving are either automatically applied or not, according to each pension provider’s scheme rules.

It is important to appreciate the above is not a manual sequence or workflow.

Live Concurrent Processing

An employee end date means all of the above is immediately visible on a live payslip and in the pay run as a result of all the rules being applied concurrently.

If you subsequently amend the date, everything is re-computed automatically. In the case where an employee end date is entered in error and then cleared, the pay run processes as normal ie as if the employee was never set as a leaver.

Unique to Each Employee Contract

All of the AI processing above is per employee. That means if you make 10 employees leave in the same company, this will result in different custom calculations based on their individual contracts and working patterns.