When an employment ends

Payments made after your employee leaves

You may make a payment to an employee after they have ceased employment. The process for reporting these payments will depend on whether the payment is made:

• in year
• or
• out of year.

Payments made in the year your employee leaves

The process for reporting a post cessation payment where the employee ceases employment in the current tax year is as follows:

• You should look up the available Revenue Payroll Notification (RPN) for the employee.
• You should make a payroll submission for the post cessation payment.
• Include the original employment ID and the original cessation date.
• Include the payment date (this is the date the post cessation payment is made).

Payments made outside the year your employee leaves

The process for reporting a post cessation payment where the employee ceases employment in a previous year is as follows:

• You should submit a new RPN request.
• Do not supply an employment commencement date.
• Make a payroll submission for the post cessation payment.
• Include the original employment ID and original cessation date.
• Include the payment date (this is the date the post cessation payment is made).

Next: When an employee retires