We all have a tendency to forget how to do things at times, especially when we don’t do something with any kind of regularity. The payroll year end process, is unfortunately one of those such things, occurring on an annual basis it’s easy to forget, or maybe it’s a case of you simply haven’t been in the job long enough to have had to do it before.
Whatever the reason, do not panic, there is still time. Phew! There are two dates that you need to make a note of; the main deadline to be aware of is 19th April 2021 by which you must submit to HMRC your report on the previous tax year, and then you need to provide P60s to your employees by 31 May 2021.
So, let’s take look at the four main things to complete when it comes to Payroll year end.
1. Week 52 or 53?
When does your payroll end, is it week 52 or is it week 53 (who knew that there were 53 weeks in a year!!!)? Now’s the time to check. If your employees are paid monthly then there is no cause for concern, you can carry on processing the payroll as normal. However, if you do have some non-monthly paid staff it may mean that their pay date falls on 5 April, in pesky week 53. If this is the case you will need to complete your payroll for 5 April in the usual way before processing year end. Unfortunately, this means you will have less time to play with, but it can’t be helped.
2. Check for Those that Bided Farewell
Remember to check for any leavers and process them accordingly. This needs to be completed before submitting your Full Payment Submission (FPS) and Employer Payment Summary (EPS).
3. Prepare the P60s
Anyone that is working for you on 5 April needs to receive a P60 from you before the 31 May. No excuses! This will outline their pay and deductions for the year which may be needed by individuals for their self-assessment tax purposes. If you use a fit-for-purpose software system, such as Sage 50 Payroll, it will generate the P60s for you and can be securely shared with the relevant employee online.
4. Go, Go, Go
Process the final payroll of the tax year. Then submit your last FPS for your final pay period, there is no difference to the way in which the FPS or EPS are submitted in the final pay period.
Set your processing date in your payroll software as 5 April and make your final submission for the 2020/21 tax year, remember the deadline is 19 April. Once this is done you can now produce the P60s before the 31 May deadline.
That’s it. Grab a brew and take a well-earned break, but not for too long as the next year is about to start, sorry!
If you need any help or advice on your Payroll software or have any training requirements, give our friendly team at Advantage Services a call on 0330 335 0011 or email firstname.lastname@example.org.