Payroll year-end can be challenging, especially for small business owners, with tight deadlines and little space for error. Year-2020 is much more complicated due to the Covid-19 pandemic’s impacts, as new reporting rules have been implemented or updated. We all know it’s getting close to the time of year when payroll must be completed. Don’t panic; simply follow the points below for an easy, breezy, and lovely payroll year-end.
Double-check that all of your employee’s information is right and up to date. You could face a penalty if you provide false information about your employees, or if there is an error in their information. You should be ensured about the employee names, their address and their social security numbers.
Comparison of Payroll activity and Payment Summary Reports:
You need to make sure that you have accurately recorded your previously submitted salary data of your employees. Many items can go unnoticed, such as a bonus that was left on the payroll for three months instead of one. Make sure your activity summary report and the payment summary details report for the current year are identical.
Year End Adjustments:
Check that both non-cash and cash revenue has been properly reported and taxed before processing the final payroll of year-end. The most common adjustments are:
Usage of a company car for personal purposes
Bonuses and other annual incentive pay
Transportation or parking provided by the company
Last Pay Run and Process Leavers:
Process your last pay run and make sure that you are satisfied with your employee’s year to date figures. You need to process any leavers before your final submission. You can use payroll services for your business. It will remove the burden of payrolls and year-end payrolls. Check with your payroll service company to see if they have an online service where workers can review and correct data. If that’s the case, allow your workers to use the service to review and edit important data.
We provide payroll services at account ease. We will complete your payroll and also submit RTI to HMRC.
Week 53 is an extra pay run you need this, if you run a weekly payroll (including fortnightly or four-weekly) then you may have to complete an extra pay run. This would happen if you owe workers money on the 5th of April, the end of the final year.
Final Full Payment Submission:
Once you are happy with all of the payment summaries of your employees and you have to work out all the details and procedures while using these steps. Then you can send your final Full Payment Submission (FPS) to HRMC. After your submission the HRMC lockdown the figures for this tax year for each employee.
P 60 Forms:
Produce P60 forms for your employees; each member of your team is legally entitled to one, and it must be received by May 31st.
You employees need P60 to prove how much tax they have paid on their salary, for example:
To claim back overpaid tax
To apply for tax credits
As proof of their income, if they apply for a loan or a mortgage
You may have completed your Payroll Year End process at this stage, so now is a good time to look forwards to the coming year. Check that all of the existing workers have been rolled over to the new tax year.
Consider what went well last year and how you might progress in the coming year. Keep track of the notes and lessons learned so that the method can be changed.
We will assist you with your payroll:
Payroll year-end is coming, so there’s no need to be panic. There is always time to get the payroll team prepared if you haven’t already.
Hopefully, this article will make handling your payroll a little simpler, but don’t forget that our helpful and professional team at Account Ease will relieve your burden, because we have a reliable payroll service.
There’s always time to get the payroll team prepared if you haven’t already. Account Ease is a Cloud-based accounting service. We work remotely and we required scanned documents only.
You don’t need to carry a stack of paper or invoices to our office. You can either mail it to us or give us scanned papers, and we’ll take care of the rest.