Your checklist to payroll year end 2020
Payroll year end is quickly approaching!
Whether it’s your first payroll year end or you’re a seasoned professional, it can be an incredibly challenging time of year.
Don’t panic, there’s still plenty of time to put a plan in place and we’re here to help.
We’ve put together a payroll year end checklist, covering what you need to do, how you can prepare and key dates to keep an eye on.
Your payroll year end checklist:
1. Give your employees a P60
You must provide employees with a P60 to summarise their pay and deductions for the last tax year.
You’ll have to provide each current employee with a P60 by 31st May and they need to be given to every employee working for you on 5th April.
2. Processing holidays over the transition
If any of your employees are on holiday over the year end, then only process their holiday pay up to 5th April.
For anything after this date, process it in week one of the new tax year.
3. Prepare for 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.
4. Process leavers
You must process any leavers ahead of your payroll year end submission, you can do this by entering their last working day into your payroll software.
This needs to be done for anyone who’s left your business since the last payroll year end date.
5. Send your final FPS
Complete your final pay run of the tax year, this will involve running your last FPS (Full Payment Submission) of the tax year.
If you submit your final FPS early or didn’t pay anyone for one or more full tax months, you’ll need to send an EPS (Employer Payment Summary).
6. Submit your report by 5th April
One final thing to remember is that you need to report to HMRC on the previous tax year by 5th April.
Key payroll year end dates:
On or before your employees’ payday
Send your final FPS payroll report of the year
From 6th April
Update employee payroll records
From 6th April
Ensure your payroll software is updated
By 31st May
Give your current employees a P60
By 6th July
Report employee expenses and benefits if they aren’t being processed through payroll
By 22nd July
Pay class 1A NIC on P11D benefits
Hopefully, this checklist has helped, you can now put the kettle on and have a quiet five minutes to yourself.
If you still have some queries, we’ve also put together a FREE comprehensive guide to payroll year end, taking a much more in-depth look.
The FREE guide to payroll year end covers:
- The essential facts
- Legislative changes
To download your FREE copy of our Payroll Year End 2020 guide, click here.