Identifying Starters, Leavers, and Transfers

Global Payroll for the UK identifies starters and leavers during the payroll process based on action codes in employees' job data records. For all starters, the system creates a new set of accumulators used for calculating statutory tax and national insurance. In effect, this identifies a new period of employment and ensures that the employee's tax and national insurance calculations are correct and end of year reporting meet statutory requirements.

Typically, starters are employees who have been hired or rehired during the pay period. Conversely, leavers are typically employees who have left the organization. However, some types of transfers may be treated as starters or terminations by payroll. Employees who have previously transferred overseas should be processed as starters when they return to the UK and employees who transfer overseas from the UK are processed as terminations.

Action and reason codes are configurable, which means that the codes used for starters and terminations vary by organization. Global Payroll for the UK provides the Process Action and Reason page for you to identify which action and reason codes your organization uses for starters and leavers. The Process Action and Reason page is set up for two process codes, P01 is the starter identification process, and P45 is the P45 identification process that identifies leavers who require P45s.

When the payroll process runs, Global Payroll for the UK searches for job data entries within the pay period that match the action codes and reasons you have specified.

As delivered, the Process Action and Reason page is set up for starter and termination processing as shown in this table:

By default, transfers (XFR) are not processed as starters or terminations. If you want certain types of transfers processed as starters or terminations, you must update the Process Action and Reasons page for the P01 or P45 process code.

During termination processing, Global Payroll for the UK populates the variable GBR VR TERM DT with the leave date. Payees are not processed by Global Payroll for the U.K after this date.

Depending on the action and reason, payees may be considered terminated by Global Payroll for the UK but still active in HR and available for processing by another Global Payroll country extension or other payroll system.

For example, suppose you set up a reason code for overseas transfers and then add this reason to the Process Action and Reasons page for the P45 process code. When Global Payroll for the UK encounters this transfer reason, the payee is processed as a termination and the GBR VR TERM DT variable is populated. Global Payroll for the UK does not process the payee after this date. However, the payee's termination date in HR is not populated. This means that the employee ID is still active. If you have changed the payee's pay group or payroll system on the Job Data — Payroll page, the employee can be processed in the new Global Payroll country extension or other payroll system.