Payroll Year-End

The end-of-year procedure is similar to the period-end procedure except that it also resets the year-to-date values and removes any employees who have left during the tax year.The year-end process steps through several stages – the usual period end backup plus the creation of a history company, the update of Tax / NIC tables for the new tax year, uplift of employee tax codes and the setting of the first pay date in the new tax year.

Creating a History Company

At the start of the year-end process you will be asked to create a history company for the payroll data.

Respond ‘Yes’ to save a copy of the payroll system as a history company.

Save as Company ID – enter a three-character reference for the history company to be created.Selected characters are reserved – existing company codes, Pxx and Sxx formats etc. – if you enter a reserved ID you will be warned according and asked to select again.

PAYE, NI and Statutory Payment Updates

Next the system displays the updated tables for PAYE, NI and Statutory Payments.

Update Employee Tax Codes

As part of the year-end update employees with "L” suffix tax codes can have their code uplift automatically applied – if prompted select as required.

Confirm First Pay Date of the Tax Year

At the end of the year-end process you will be asked for the first pay date in the new tax year. This is the date the employee is paid, which is not always the date the payroll is to be run for – you may, for example, run the payroll and pay the employee on the Thursday for the week up to the previous Friday. The system currently, via pay day and week-in-arrears settings, records the date the payroll is run up to – it also needs to record the date the employee is first paid (i.e. the first pay date after April 6^th). This ‘run’ date must be after April 6^th 2013.