Product Manager Answers Your Questions About Payroll Year End | Ask Me Anything

Hi

I have today run my final payroll (m12) for the year for one of our companies. We have not had any employees on the payroll  for the last 10 months, so there are no P60's. Can I just cancel the QB Payroll subscription for this company after I am able to submit the final EPS. Also do I need to inform HMRC of anything? 

Hello Dolly5, thanks for posting on here, yes you can just cancel the QB Payroll subscription, you just cancel this in the billing and subscription section in QB after you have submitted the final EPS.  The final EPS closes off the PAYE scheme offically on your system so HMRC will get that which will tell them its your last on.

Hi, we use QB advanced payroll, this will be our first end of tax year as employers and we only have one employee. Our pay months run calendar months paid on 28th, so I’m unsure how to do the year end including the first few days of April so as not to mess up the actual pay amount, our employee’s tax code also needs changing for the new tax year, so again not sure how this works for April’s payrun, as the I assume the first 5 days will need to be at the current tax code?!

I hope that makes sense to someone who can help!! 
Many thanks in advance :)

Payroll year-end is coming, and I want to make sure your employee and taxes data are accurate, AQ22.

I'll help you with what needs to be done in the year-end process in your QuickBooks Online Payroll Advanced. This way, you can finish the year-end smoothly.

If your employee is paid monthly, you'll not get a week 53. That said, you can treat your payroll as usual. However, if the final payment date falls on 4 or 5 April, your pay ends in week 53. For more details about this, read through this article: Process week 53 for your payroll.

Regarding the change in employee tax codes, I recommend contacting a payroll specialist/manager. They can guide you on what to do about your first five days of being included in the new code. 

Once confirmed, follow the steps below on how to change the employee tax code: 

1. Go to the Payroll tab and select Employees.
2. Pick the employee name and hit Edit. 
3. Click the Pencil icon perpendicular to Tax information. 
4. Modify the Tax code in the field and choose Save. 

You might want to check out this article to learn how to manage your employees: Add, edit, or inactivate an employee.

Further, check out these articles to know the year-end key dates, checklist, tax changes, and other related topics: 

• Year-end guide 2022/2023 for Advanced Payroll
• Important payroll year-end dates for 2022/2023 worth adding to your calendar

Please let me know if there's anything else I can do for you. I'll be standing by for your response. Keep safe, AQ22.

Hi, advanced payroll user, first payroll year end, I have read your article.  My payroll runs monthly to 31st March. on your article with guidance for pay run year end it says to ensure the processing date is 5/4/2022. Where is the 'processing' date I need to ensure is 5th March please?

Not 5th March, 5th April

Thanks for joining us here, @susan.white.

I'll share the steps on how you can verify your processing date. Let's go to the payroll page to see it.

1. Go to Gear at the top and then select Payroll Settings.
2. In the Pay Run settings, choose Pay Schedules.
3. Simply select the name of the pay schedule you wish to edit..
4. Click Save.

With the above steps, you're able to view the details of the pay schedule where you can make any necessary changes.

For more information about the process, check out this guide: Set up pay schedules in QuickBooks Online Advanced Payroll.

Additionally, here's our QuickBooks Online Advanced Payroll hub to help you manage payroll settings, employees, process payroll, and reports.

Please don't hesitate to reply if you have other payroll questions. I'll be around for you. Take care and have a great day ahead.

Thank you for your response.

My pay schedule is monthly, so I have run March and confirmed it's the final pay run of the year, which was until 31/3/22. I am aware I can roll back if necessary.

I wonder if I need to create an additional pay schedule for year end, in which case I still need a frequency 'monthly?'. I am not sure where to set the processing date? I have pay run automation set to manual, but when running pay run I still don't see a 'processing date' option.

Hello Susan, If you have a look at this link it may help with everything you want to know about QuickBooks Payroll Advance at year-end. However, if you have any follow-up questions around that, please do ask them here. 

Thanks, I have seen the article attached, and my question relates to it.

Please see the quoted sections below.

I run a monthly payroll in advanced payroll, March is 1st - 31st, I have ticked that it's the final one of the year. The first bit I have bolded says to process as normal, the second bit says to check the processing date is 5th April. I cannot find the elusive 'processing date' to check. In my pay schedules there is not such a field.

1. Check if your payroll date ends on week 52 or week 53

If your employees are paid monthly you won't have a week 53, and you can process your payroll as normal. If the final pay date falls on 4 or 5 April then your payroll ends on week 53.

3. Run year end payroll

Time to process payroll! Make sure the processing date is set to 5 April, the last day of the current tax year.

should I create a new pay schedule for the year end payroll? in which case I have a limited number of 'frequency' choices, and still no 'processing date'.

Maybe simply ticking the box 'this is the final payroll  of the year' will achieve what is required for HMRC submission?

Maybe when I run payroll the pay period ending should have been 5/4/22, however that would mess up monthly salaries?

Hi Susan, if you run a regular monthly payroll the only change you'll need to make is to select 'this is the final payroll of the year' so that the EOY documents are produced, you'll then be advanced into the next tax year automatically. 

I was very thankful to receive this last night, perfect thanks for answering my question

Hi I hope this is ok to ask...

I do the bookkeeping for some clients, they run payroll through Quickbooks but a few times have either underpaid or overpaid their employees which is annoying for me as the payments don't match the journal entries. 

I'm at a loss as to how to reconcile and account for these payments as well as any payments that need to be made to ratify these mistakes.

Can you help please?

Thanks

Hello, Abigail. 

You've come to the right place. So, I'm here to help you correct the underpayment and overpayment from payroll so you can reconcile your clients' bank accounts. 

You would want to create another set of journal entries to correct the underpayment or overpayment from payroll. This will adjust the payroll balances and expenses manually. 

Generally, you'll want to include the bank account, payroll liability accounts and other accounts related to payroll. This ensures the tax balances are correct and properly booked during tax payments.

To create a journal entry, simply click the + New button, then select Journal entry. 

However if you need help creating these journal entries, I would recommend consulting with an accountant well-versed in QuickBooks Online. 

After recording those entries, proceed with the reconciliation process. This article will guide you through the process if you need help: Reconcile an account in QuickBooks Online.

If you and your clients use the Banking feature, you would just need to exclude those downloaded bank entries and proceed with the regular reconciliation process.

To exclude a downloaded bank transaction: 

1. Go to the Banking page, then select the For review tab.
2. Find and check the downloaded bank transactions regarding payroll.
3. Select the Exclude option. 

Also to prevent underpaying or overpaying those employees, make sure that those hours and wages are correct as your clients pay their employees. You can share one of these articles with them in case they need more help: 

• How to run payroll in QuickBooks Online Standard Payroll
• Create a New Pay Run on QuickBooks Online Advanced Payroll

After correcting those overpayment and underpayment entries and reconciling the bank account, do you need help checking the employees' data? 

• QuickBooks Online Advanced Payroll hub (Expand Reports & pensions).
• View reports in QuickBooks Online Standard Payroll

You're more than welcome to post your reply here if you have other questions about managing payroll in QuickBooks. If you need help with any other transactions, let me know and I'll help you out again. 

In Payroll Advance, there are green icons against each month for HMRC submission, payslips published and journal exported, including March 2022, and all months have been finalised.  However, there was a problem with the February payroll and although it was finalised, submitted to HMRC and the payslips published, there was no journal exported.  The auto webchat Payroll assistant has today suggested unlocking (and perhaps deleting) but this seems a bit drastic, given that the details have been sent to HMRC and to the employees.  If I raise manual journals instead for the P&L and balance sheet entries, will these manual journals mess up Payroll Advance, and in particular, cause problems with the year end process?  

I apologise if this has been posted in the wrong place, this webpage is a bit confusing as to where new questions are posted.  

Thanks for joining us today, @Mungo.

I have some information about the exported journal. Once you've submitted your payroll info to HMRC QuickBooks will automatically create an entry. Since this isn't the case in your February data, you'll have to unlock the payroll entry to correct it as per our payroll representative.

I understand that you've already contacted our Payroll Support. However, I recommend contacting them again, they have the tools and resources that can help you correct and unlock the entry.

Here's how to reach out: 

1. Go to Help at the top.
2. Tap the Search tab. Then, choose Contact Us.
3. Enter a brief description of the issue, then select Continue.
4. Click Chat with us.

With the assistance of our payroll agent, you'll be able to correct the entry without messing the reports.

Here's a handy article that'll help you manage payroll-related tasks. Just choose a title that fits your concern: QuickBooks Online Advanced Payroll Hub.

Please don't hesitate to reach out me again through this thread if you have other payroll questions. I'll be here for you. Take care and have a good one.

Hi 

We have run our final payroll and QBO has generated p60s for all employees, however there are p60s for two leavers (leave date marked as 1st April 2021 & 2nd April 2021). There are not p60s for any of the other 2021 leavers. Why would it generate a p60 for a leaver?

Thank you in advance

I appreciate your for joining the thread, Megan. I can share with you some insights about the P60 form.

The P60 form is an annual statement issued to employees who are still in your employment at the end of the tax year. It outlines the tax and national insurance (NI) contributions employees have paid over the previous tax year.

Employees who have left during the tax year receive a P45 instead of a P60.

Since two leavers have P60s generated, you may double-check their records to isolate the issue. Or, you can connect with our designated Support Team. This way, a live representative can look into your account securely and review the employees' standing.

To learn more about P60s, you can check out these articles:

• How to generate a P60 form
• Year-end guide 2022/2023 for Advanced Payroll

Let me know if you have any other follow-up questions about the P60s. I'm just a post away to help. Have a good one!

Whoops, forgot to check the final payroll run check box! What now?

It's good to see you here, @SAW108.

It is important for us to make sure your payroll tasks are completed successfully.

For this concern of yours, we need you to reach out to our support via phone or chat so that we can raise a ticket on your account to correct this. Our representatives can look into your account and help you with your final payroll and corrections.

You can reach out through this link: Contact Payroll Support QBO Payroll UK.

Reach out back to us if you need other assistance with QuickBooks Online Payroll. I'll be right here if you need anything else. Have a good one.

Hi, I run fortnightly payroll. The next payroll date is 1st April and the subsequent payroll date is 15th April. Which of these payrolls should I mark as final year end?

It's a pleasure to have you here, @Alex Sinclair. Let me chime in and provide some information about managing fortnightly payroll.

In QuickBooks, it is crucial to know what should you mark as the final year-end. That being said, it would be best to check HMRC or consult your accountant. This is to ensure that your book is accurate and balanced.

Additionally, I've attached some articles you can utilize for future use and help manage your payroll activities in QuickBooks:

• Set up and manage pay schedules
• Take action status when connecting to HMRC for Making Tax Digital (MTD)

Fill me in if you have other questions about managing your payroll in QuickBooks. I'll be around to help you. Stay safe, and have a great day!

I have advanced payroll and pay employees every 4 weeks.

I have run my final payrun for the year and published payslips.

The payslips seem to have been calculated based on 14 weeks instead of 13 weeks?

Please can you let me know if this is correct or should it be calulated by 13 weeks ?