What's covered in this guide?
Access the Payroll Setup Checklist
To review an employee's payroll setup after rehiring them:
Go to Staff.
Select Tools.
Click Payroll Setup Checklist.
Select the employee's name.
Review tax information
Open the Tax Information tab and review:
National Insurance Number
Employment Status
Tax Code
Student Loan Plan
📝 Important to note: If you've received updated tax information from HMRC since the employee was previously employed, update these details before processing payroll.
Update opening balances
If you're rehiring an employee within the same tax year, review their opening balances.
You may need to update:
Year-to-date gross pay
Taxable earnings
National Insurance earnings
Statutory leave balances
Pension contributions
🛑 Important: If the employee previously worked for your organisation during the current tax year, use Opening Balances to record their year-to-date payroll figures. Do not enter this information in Previous Employment. Doing so may result in incorrect tax calculations.
📝 Important to note: Only use Previous Employment if the employee worked for a different employer earlier in the same tax year.
Review payroll details
Open the Payroll Details tab and review:
Leave balances
Deductions
Pension provider membership
Auto-paid earnings templates
Bank account details
📝 Important to note: Ensure any deductions or payroll settings that applied before termination are still accurate before processing payroll.
Review pension enrolment
If the employee previously opted out of a pension scheme, they may need to be reassessed for auto-enrolment.
Review your pension settings and confirm the employee's pension membership is configured correctly.
📝 Important to note: Depending on your payroll settings, pension enrolment may occur automatically or require manual action.
FAQs and Troubleshooting
Do I need to update payroll information after rehiring an employee?
Do I need to update payroll information after rehiring an employee?
Yes. Review tax information, opening balances, payroll details, pension enrolment, and bank account information before processing payroll.
When should I use Previous Employment?
When should I use Previous Employment?
Only use Previous Employment if the employee worked for a different employer earlier in the same tax year. For employees returning to your organisation, use Opening Balances instead.
What happens if I enter previous employment information incorrectly?
What happens if I enter previous employment information incorrectly?
The employee's tax calculations may be affected because the system will treat the information as additional income. Review your opening balances carefully before processing payroll.