'On Hold' Employees

'On Hold' Employees

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Hi there

Apologies another payroll question.

We have just downloaded our yearend/2014-2015 upgrade on Sage and noted that an FPS no longer includes 'on hold' employees.

Sage have advised that HMRC no longer need to know each month that an employee is on hold. They used to be reported as "Irregular = Yes". Sage advised this is because the HMRC ruling that if nothing is reported for an employee for more than 90 days then they would action them as a leaver has been removed. From now on an 'on hold' employee only needs to be reported as such for the first month and then HMRC will take no action unless they hear otherwise on a subsequent submission ie Leaver details etc.

Does anyone know when these rules were changed by HMRC?

Thanks, as ever

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By onicholson
14th Mar 2014 14:37

No change with HMRC
HMRC only ever made an employee a leaver if they were last filed as regular and not paid for 3 months (in most cases). The rule hasn't changed for 14-15 but they did clarify their intentions with unpaid employees, which were vague in places.

At a guess, Sage have simply updated how they handle the situation to remove the unneeded submissions each month.

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By Kazmc
14th Mar 2014 14:48

@onicholson

thanks very much for your reply.

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