Meeting your obligations as an employer to your staff and HM Revenue and Customs (HMRC) can often be confusing and time-consuming, preventing you from doing what you do best – running your business.
What’s more the payroll year ends on 5th April 2020, so time is running out – but don’t panic as you still have time to get everything ready and it’s even easier with the help of our expert team at TaxAssist Accountants.
To make preparing for the Payroll Year End simpler, we have provided this eight-step guide to putting your payroll in order.
Step 1 – Employee details
Make sure all your employees’ details are correct and up to date on your payroll software.
Step 2 – Pay
Use the time in the lead up to the Payroll Year End to check through the previously submitted pay details to ensure you have reported all your staff’s pay correctly. You will be amazed at how many things can go unnoticed, such as a bonus left on the payroll for three months instead of one.
Step 3 – Last pay run
Process your last pay run that falls on or before 5th April 2020 and check you are happy with your employees’ year-to-date figures.
Step 4 – Process Leavers
You should process any leavers before you do your final submission, so this information is recorded in the correct tax year.
Step 5 – Week 53
If you run a weekly payroll (including fortnightly or four-weekly) then you may have to complete an extra pay run, called a week 53. This will happen if you’re due to pay employees on the tax year end date, 5th April. Your software will reveal this for you by showing an extra pay field.
Step 6 – Send you final Full Payment Submission
Once you are happy with all the above, you can then submit your final Full Payment Submission (FPS) to HMRC. This tells HMRC to lock down the figures for this tax year for each employee. If you didn’t pay anyone in the last period before 5th April, then you will need to submit an employer payment summary (EPS).
Step 7 – P60s
Produce your employees P60 forms as each member of your staff is legally entitled to this form and it needs to be with them by 31st May 2020.
Step 8 – New Year
At this point you will have completed your Payroll Year End process, but this is also a good time to look at the year ahead. You should check that all your current employees have been rolled over into the new tax year 6th April 2020 to 5th April 2021. Some employers also look at awarding pay increases at this time of year, so it is worth getting these set up if applicable.
We can help with your payroll
Hopefully the above eight steps will make managing your payroll a little easier, but don’t forget that our friendly and experienced team at TaxAssist Accountants can take this task off your hands as we offer a comprehensive payroll service.