Payroll year end process
The guide covers the following sections:
Before completing the final payroll
Weekly, 2-weekly, and 4-weekly payrolls may need an extra pay period to finish the tax year. Monthly payrolls never need this. Every Payroll adds the extra period automatically, based on the pay date. Once week 52 is finalised, run the extra period as the next pay run, if it appears. Go to Payroll week 53, 54 or 56 to find out more.
Issue P45s for employees not being paid.
Report an employee as a leaver when you pay them for the last time. If it is not known if they are leaving for good, make them a leaver on the last payroll of the year. If they come back to work, set them up again as a new employee. For more information, go to the gov.uk guidance about employees leaving.
After completing the final payroll
Organisations using Pay Benefits must complete a few tasks to continue the benefit into the new year.
- Perform a reconciliation.
- Check Directors National Insurance (NI) calculation.
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Start the year end process.
The year end process submits the final FPS Full Payment Submission is an RTI online submission to be sent on or before each payday. This informs HMRC about the payments and deductions for each employee., EPS Employer Payment Summary is an RTI online submission sent monthly if, you are reclaiming statutory payments, claiming Employment Allowance (EA is only reported once per tax year), reporting Construction Industry Scheme (CIS) deductions or reporting how much Apprenticeship Levy is due. The EPS is also used to report if no employees will be paid for a whole tax month or longer. if necessary, and generates P60s for employees.
Other tasks
These tasks only apply in certain situations:
- If a mistake is found after 15 April in a previous tax year, make a correction to a previous tax year.
- If benefits need to continue into the new tax year, roll benefits over.
- If employee benefits or expenses need reporting to HMRC His Majesty's Revenue and Customs is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support, the administration of other regulatory regimes including the national minimum wage and the issuance of national insurance numbers., produce P11D working sheets.
- If a P60 The P60 form is issued by employers each employee detailing their taxable income and deductions made by PAYE (both for income tax and National Insurance contributions) for the tax year (6 April to 5 April). The P60 has to be given to employees by 31 May. Parts 1 and 2 of the P14 were rendered redundant by RTI at the beginning of the 2013/2014 tax year. needs producing again for an employee, produce a duplicate P60.
Useful information
- What's new in Every Payroll.
Support teams are very busy during payroll year end. Thank you for your patience.