Preparing for Annual Payroll Reporting

By 20/12/2020 Payroll

There are many reports required to complete end of year payroll reporting, so getting started now can help you get ready for the 5 April deadline.

Employers must report to HMRC for the previous year, and are required to give employees a P60 form. The final payroll report, the Full Payment Submission, must be submitted on or before 5 April to avoid penalties. The payroll information required to report to HMRC includes employer information such as your PAYE reference number, HMRC office number, accounts office reference, and tax year. Failure to submit the correct paperwork and information can lead to hours of re-work and potential fines.

Relevant employee information, including National Insurance, general demographic data and payroll ID is also required. All of the employee pay and deductions made in each period must be reported in the FPS report, along with pension deductions, maternity/paternity, etc., and if you pay benefits through payroll as well.

For year-end reporting, employers must report to HMRC by 5 April, update all employee records and payroll data, distribute employee P60 reports prior to 31 May, and report employee expenses and benefits by 6 July.

With so many required reports and deadlines, year-end payroll reporting can be overwhelming.  Utilising an online payroll provider can ease your reporting burdens, ensure compliance, and help avoid fines and penalties. Simple to use, customized technology and reporting tools save hours of administrative work, reduce human error, and let you get back to growing your business.

 

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