Mitrefinch’s Guide to Payroll Year End 2022
The payroll year end for 2021/2022 is fast approaching. It can be a stressful time of the year for everyone involved, but with Mitrefinch’s help and guidance, it doesn’t have to be.
Please note: You are responsible for seeking independent advice on subjects mentioned in this blog, and complying with the tax law. This blog is subject to change and is based on our personal understanding of the tax law when published, with guidance from reliable sources.
Key Dates For Payroll Year End
The calendar for payroll professionals is a busy one, especially when it comes to end of year payroll. April is fast approaching, so having an organised and up-to-date calendar is vital.
Keeping track of the required procedures and deadlines on a monthly basis will be the deciding factor on whether your payroll year end is a seamless process. Familiarising yourself with our payroll year end checklist can help you avoid wasting time, money and mitigate other payroll-related stress.
When does payroll end need to be submitted?
Here are key dates that you need to be aware of for payroll year end 2021/2022.
|What You Need To Do||When|
|Send your final payroll report of the year||On or before your employees’ payday|
|End of income Tax Year 2021/2022||5 April 2022|
|New Payroll Tax Year 2022/2023||6 April 2022|
|Update payroll software||From 6 April, or earlier if the software provider asks you to|
|Update employee payroll records||From 6 April|
|Submit your month 12 / year end EPS||19th April|
|Give your employees a P60||By 31 May|
|Report employee expenses and benefits||By 6 July|
To help you process your payroll year end, HMRC have a step by step guide that you can follow here. There’s a number of things that payroll professionals need to complete, but the key task is to submit your final pay roll for the year 2021/2022 in time.
Payroll team responsibilities for year end payroll
There’s still time to prepare your payroll team and carry out the specific tasks needed. Below, we outline some of the responsibilities that will be required from the payroll team as the financial year end approaches:
Check and Double Check
Before the submission of your end of year payroll, it is advised that you check the following:
- Correct details for all employees are included in your payroll
- The correct payment date your company pays employees
- Your payment amounts or any additional payments such as pension contributions and student loan deductions
- Tax and National Insurance deductions
- Get your employee P60’s ready
- Check when your payroll ends
- Process any employees who have left your business as leavers
- Ensure the final date of any employees being paid for the final time in your submission has been recorded in their profile
- Send your final Full Payment Submissions (FPS) of the year
- Process your payroll year end
Providing employees with P60s
After you’ve provided the final submission of your 2021/2022 end of year payroll, you’ll need to provide your employees with a P60 form. This should be issued after April 6th 2022 and must be done by May 31st 2022.
This is a payroll summary generated for the employees to keep for their current records. You can only provide P60 forms to someone that is still an employee after 5th April. Anyone who has left your company before then will need to be given a P45 form instead.
Your P60 form should include the following information:
- Employee personal details such as: name, National Insurance number, tax code and work payroll number (if they have one)
- Payment information such as: Pay in their current employment, any deductions, (including National Insurance) , current tax code, pay in the previous employment, details of maternity/paternity/adoption pay and any student loan deductions.
If your chosen payroll software is through Mitrefinch, your P60 will automatically be produced for all your employees at the end of the tax payroll year. Find out more about how to access your employees P60’s in Mitrefinch.
Set up a new payroll tax year
You’ll need to set up a new payroll tax year for each employee after you’ve filed month 12 for the current tax year. You can choose when and how often you pay your current employees. Here’s a list of things to remember when setting up your new payroll tax year:
- Register as an employer with HMRC
- Choose your payroll software
- Collect and keep records
- Use the correct tax code
- Make sure employee payroll details are up to date
- Tell HMRC about your employees
- Record pay, make deductions and report to HMRC
- Pay HMRC tax any National Insurance contributions you may owe
Tips for a stress-free payroll year end
See our top tips below to help you and your payroll teams with making the payroll year end as stress free as possible.
Keep payroll policies simple
Avoid complicating your expenses, mileage, attendance, commission structure, paid leave and other policies. The more complicated your payroll policies are, the more unnecessarily complex your payroll process will be. You want to create a system that will be stress free by keeping your policies simple and straightforward.
Use electronic payslips
As traditional paper payslips are increasingly becoming a thing of the past, using electronic paper slips is a faster and more efficient way of paying your employees. There are many pros to using electronic payslips, including:
- Better data protection
- Time saving: less time spent on manual processing can equal increased productivity
- Cost savings: no postage fees involved
- Flexible Access: remote access for payroll teams
- Improved employee experience: all paperwork is stored in one accessible place
- There are different ways to deliver electronic payslips and you can choose which of these is best for your company. This can include: company intranet, mobile app, online portal (mobile optimised or email attachment/embedded/web link)
Use automated payroll software
Using automated payroll software like Mitrefinch’s Flexipay solution can help you to manage your payroll duties and ensure deadlines are met, whilst reducing the likelihood of errors.
Payroll software such as Mitrefinch’s Flexipay helps to keep your business streamlined and organised, by allowing you to manage HR, payroll departments and human resources changes such as leavers, salary changes, new starters and more.
With our solution, all the changes that you make are automatically updated for your year end tax payroll.
The pros of using an automated payroll software include:
- Reduced errors
- Save time and money
- Increased data security
- Automatic reports
- Tax filing simplified
Find out more about Mitrefinch’s payroll software.
Your end of year payroll doesn’t have to be stressful. Follow the tips listed and with the help of our HMRC recognised payroll software, you and your payroll team can benefit from a smooth and hassle-free experience.