Prepare for Payroll Year End using Sage 50cloud Payroll
As the financial year draws to an end, its time to start thinking about processing your payroll Year End. With the new tax year beginning on 6th April, you’ll need to close your current payroll year, produce P60s and submit your full payment submission.
Below the steps you’ll need to follow to process your Payroll Year End using Sage 50 Payroll. If you’re unsure of how to use Sage payroll software to process your Year End check out our range of payroll training options before you begin.
Check when your Payroll year ends and review your employees’ pay rates
The first thing to do it check when your payroll year ends. It may be different if your company pays weekly, bi-weekly, or monthly.
Using the P11 reports, also check that you have used the correct pay rates for your employees.
Check for leavers or new starters
Before you make your Full Payment Submission or Employer Payment Submission make sure your records are in order. Now is the time to make sure that any new employees or any leavers have been amended within your software.
Final Full Payment Submission/ Employer Payment Submission
Once you’ve figured out your Payroll Year End and processed your final payroll of the tax year, its time to send your final FPS (and EPS if needed)
If there are values that can’t be included on the FPS, you’ll need to submit am Employer Payment Submission too. An EPS is required in the following circumstances
- If no payments to employees are made within the current or past pay period meaning no FPS has been submitted
- To declare a future period of inactivity
- To recover statutory payments
- To recover Construction Industry Scheme deductions suffered
- To indicate that you have made your final submission for the year
- To claim Employment Allowance
Process your payroll Year End
Once you’ve completed the steps above you can process your Year End in Sage 50 Payroll. Before you begin check that your processing date is set to 5th April.
Produce your P60’s
After you’ve processed your Year End, you can produce your employees’ P60’s (you’ll need to provide these by 31st May) A P60 is essentially a round-up of all the wage slips you’ve sent to your employees over the last 12 months.
This also includes any deemed employees who are now on your Payroll due to the change in IR35 rules.
With Sage Payroll you don’t need any specific stationary, simply create a PDF to print or email to your employees.
Start your new Payroll Year
Before you can open your new Payroll year, refer to the P9X. This is the HMRC document that lists all of the tax codes you’ll need for the coming year. With some personal allowance and tax thresholds frozen until 2026, you’ll need to check carefully for the right codes.
You’ll also need to check the thresholds for other things like student loans and postgraduate loans too.
Payroll Year End Timeline
Sage has listed the important dates you need to be aware of when processing your Payroll Year End. We’ve summarised them below
- 5th April: The 2021/22 tax year ends
- 6th April: new tax year begins
- 19th April: The deadline for the final submission of the 2021/22 tax year
- 22nd April: The deadline for month 12 PAYE
- 31st May: All employees must receive their P60 by this date
- 6th July: Deadline for reporting on expenses and benefits. This is also the deadline to submit your P11D and P11D(b) forms.
- 22nd July: The deadline for paying class 1A National Insurance contributions on Benefits in Kind
Wrapping up the previous financial year and going through your Year End in Sage 50 Payroll can be a complicated process. At Softext we have a range of training materials designed to help you navigate the software. From training manuals to 1-2-1 sessions, you’ll find the payroll training option that best suits you.
