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Payroll year end checklist for 2020

A smooth-running payroll system is essential to the success of any small business. Paying your team the correct amount at the right time will help build a positive and trusting relationship and keep you working within the law.

Thankfully, we’ve moved on from the days of keeping paper records and handing out cheques to staff in person. New technology has made it simpler by automating some payroll processes – helping small businesses to save time and money.

If your business is using software, you should reap the rewards of better automation, improved tax calculations, real-time reporting for financial auditing, and many more features. If not, it may be time to speak to an expert about your options.

Payroll year end will be here in no time

Payroll year end will be here before you know it but as the deadline approaches, there’s no need to panic.

Getting to grips with your year end payroll planning as soon as possible will make the process altogether smoother. So what do you need to do?

Payroll year end checklist

  1. Stock up on your P60s – If you provide employees with paper copies of their P60, make sure you have enough forms available. Check your stationery cupboard and place your order if needed well in advance.
  2. Check payroll dates for your employees – Are you paying any employees on a weekly, fortnightly or four-weekly basis? If their pay date falls on 5 April, you’ll have to process week 53 instead of the usual 52 weeks.
  3. Process any leavers – If any employees are no longer working for your business you need to process them as leavers for the final pay run of that financial year.
  4. Submit your FPS & EPS  – You have to send your Full Payment Submission (FPS) and, if needed, Employer Payment Summary (EPS) to HMRC by 19 April.
  5. Process year endProcess your year end and make your final submission for the 2019/20 tax year to HMRC by 5 April. Each payroll software will have a different way of processing the year end so make sure you check in with your provider to find out how they complete this step.
  6. Send out your P60s –  All employees need to receive a P60 form from no later than 31 May. They can be printed or emailed electronically.
  7. Get ready for the 2020/21 tax year – After completing payroll year end for another year, it’s time to start processing payroll for the new tax year.

Choosing to outsource payroll

Even with new technology in place, running payroll can be a complicated process, time-consuming and, due to the extensive legal requirements, a risk to your business. 

It’s easy to see why so many small businesses choose to outsource payroll, leaving them with more time to focus on their business and give them peace of mind that it’s being taken care of by an expert.

If the administration of payroll is starting to take precious resources away from key areas of your small business it could be time to speak to an accountant. Payroll providers, like us, can take care of everything or just do part of the job, depending on what you need and what you can afford.