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How do I set up the P45 Enhanced - Income Tax Particulars of Employee Leaving form?

Updated on Jul 15, 2020

This Form is a legal requirement that is to be submitted:

electronically by employers to the Tax Administration Jamaica (TAJ).
to terminated employees via duplicate PDF copies.

P45 Enhanced:

takes effect from March 2020 for employees who are laid off.
allows employers to electronically provide information on the particulars of employees laid off from their employment - when an employee is laid off during a calendar year; information detailing emoluments, including perquisites paid and taxes and statutory deductions made to date.
requires that any information related to redundancy be reflected separately.
supports the validation process (for employees who have been laid off since March 10, 2020) who may be eligible to benefit from the Government of Jamaica’s (GOJ) CARE programme.

Step 1: Define the Status of Separation Types

The Status (Permanent or Temporary) of the Separation is required on the P45 form. The following shows the steps involved in defining each Separation Type.

Personnel>>Transactions:

Personnel>>Transactions>>Transaction Types:

Personnel>>Transactions>>Transaction Reasons:

Personnel>>Transactions>>Separation Types:

The nature (Status) of the separation is displayed on the P45 form.

Step 2: Set up Termination Payment Codes

POWERpay>>Maintenance>>Payroll Setup>>Other Income:

POWERpay>>Maintenance>>Payroll Setup>>Allowances:

POWERpay>>Maintenance>>Payroll Setup>>Earnings:

Step 3: Configure System Codes

System Configurations>>System Codes:

The Value field is the link between the Redundancy Payment System Codes and the Earnings, Other Income and/or Allowances records by which the Redundancy Payments will be displayed on the P54 Form.

Step 4: Separate Employees

Personnel>>Transactions>>Separations

Ensure that the employee separation record is Posted.

Step 5: Process Payroll and Print Reports

POWERpay>>Process Payroll>>Cycle Changes

In this step, you can process payroll as you normally would and print your normal payroll reports including the Cycle Pay Register (sample Cycle Pay Register is attached).