The end of the tax year is approaching fast, and with it comes the need to get your payroll in order. Whether you're new to QuickBooks Advanced Payroll or a seasoned pro, this guide will help you get everything sorted so you can hit the ground running in the new year.
From preparing your data to filing your taxes, we'll cover everything you need to know to make payroll year-end a breeze. So let's get started!
Here's how you can wrap up this year’s payroll and prepare for the next.
1. Check if your payroll date ends on week 52 or 53
If you process your employees' pay monthly, you won't need to worry about whether your payroll ends on week 52 or 53. However, if the final pay date falls on 5 April, then your payroll will end on week 53.
We'll explain everything you need to know about running payroll week 53 in this article.
2. Process employee leavers
When an employee leaves your company, it's important to process their departure correctly in QuickBooks. This ensures that your FPS and year-end submission will be accurate and complete.
To properly process a leaver, you'll need to mark their last working day in QuickBooks. This can be done by terminating the employee in the system.
3. Run your final payroll
It's time to run your final payroll of the tax year. QuickBooks will notify you when it's time to run your final payroll.
If this is your first time running payroll, don't worry–it's not as complicated as it may seem. This article will walk you through the process step-by-step so that you can get it done quickly and easily.
If you choose to submit your FPS at a later date, make sure you send this to HMRC on or before 19 April.
How to roll back or delete a pay run
If you've ever made a mistake when running payroll, let's say if the wrong amount was entered into the system or if an incorrect deduction was made, you know how frustrating it can be. Luckily, it's usually possible to roll back the pay run and start over.
If you find yourself in the situation where you need to delete a pay run, remember to reset your Employment Allowance according to your eligibility for the tax tear 2023/24.
4. Submit your final FPS to HMRC
Next step is to send an FPS to HMRC. The FPS is used to calculate your business's PAYE and NIC liability for the tax year.
After you submit an FPS to HMRC, you'll need to wait for a confirmation email before you can be sure that your submission has gone through and is accepted by HMRC. While you're waiting, you can view all of your recent submissions in QuickBooks.
And if required, submit your final EPS too.
5. Give employees their payslips
As an employer, it is your responsibility to provide your employees with their payslips. A payslip is generated for each employee every time you run payroll and contains important information about their earnings and deductions.
It is important that you distribute payslips to all employees on or before their pay date. This will ensure that they have the information they need. The payslip will show their earnings before and after deductions, taxes and other contributions.
There are a few different ways that you can distribute payslips to your employees. You can either download them or email them directly. You can also invite your employees to QuickBooks Workforce, a secure self-service portal where employees can view and download their payslip and P60 form themselves, saving you valuable time on admin.
6. Give employee P60 forms
Finally, create and provide your employees with their P60 forms by May 31. You'll need to create and give these to your employees after you run your final payroll.
Note: A P60 form summarises an employee's pay and deductions for the entire year, and is only generated for employees still in your employment at the end of the tax year.
And that's it! You've successfully completed your final payroll for this tax year.
7. Roll over benefits in kind into the new tax year
As we approach the end of the tax year, it's important to make sure that all of your payroll benefits are properly accounted for. This includes any benefits you have payrolled or reported via the P11D form.
If you have any benefits that are required for the 2023/24 tax year, you'll need to roll them into the new tax year. Don't worry, the benefits section in QuickBooks should have a year-end option that will take you through the process.
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For more articles, check out the Advanced Payroll hub page.