Payroll year end can be a stressful time of the year for everybody involved. It is essential that you know your obligations as a payroll operator. This step by step guide should help you carry out the year end process.
Run your last pay period.
The first step of the year end process is to carry out your last pay period of the year. There are in total 52 pay periods for weekly paying employers, 26 for fortnightly and 12 for monthly paid employees. However for some employers whose first pay period fell on the Tuesday the 1st of January they may have an extra pay period. Payroll operators should contact Revenue for further information on this.
Check your payroll records and finalize your figures.
At year end it is extremely important to check that you have a valid PPS number and correct personal details recorded for each employee. You should double check that your figures are correct and that all employees have been charged the correct amount of USC*, PRSI* and PAYE*. The validate payroll option in Sage software carries out these checks for you.
Complete and File your annual return (P35)
The P35 return is an annual declaration to Revenue of PAYE, PRSI and USC for all employees who have worked with a company in that tax year. For employers who submit this return manually to the Revenue commissioner this form must be submitted and any outstanding payments made by the 15th of February 2014. If you use ROS both to submit your return and pay the associated payment, you can avail of an extended deadline: Feb 23rd, 2014. – Sage payroll software will generate this report automatically for you.
Give a P60 to your Employees
Any employee still currently employed in the business as of the 31st of December 2013 must be given a P60. This report details cumulative earnings, PAYE, PRSI and USC for the tax year in question. – Sage payroll software generates this report automatically and allows you to print or email them to your employees.
So what about 2014?
At the start of the New Year Revenue will issue new P2Cs or tax certs for all of your employees. If you are registered with ROS (Revenue online service) you can log on and obtain these certs in your inbox. They will be displayed in excel format. These certs hold updated information for the rates at which employees are charged PAYE and USC. – Sage payroll software allows you to directly import P2Cs saving you time and leaving less margin for errors to occur.
If you are manually recording your payroll be sure to implement the change in PRSI announced in budget 2014. (Class AL The 4.25% employer PRSI rate currently applied to employees with weekly earnings of €356 or less, will revert to the original 8.5% rate from 1 January 2014).
2013 has been a big year for changes to payroll legislation such as the introduction of Local Property Tax and change to maternity benefit, but with Sage we aimed to help make these changes quick and simple. We have also been working hard to ensure our customers will be SEPA ready in time for the 1 February deadline. To talk to a member of our team about your payroll compliance, call us on 1890 88 20 40 or buy our payroll software online.