Sage-Payroll-Year End Blog

Sage Payroll Year End | Payroll Year End 2021

In Business Management Software by David

Reading Time: 3 minutes

Payroll Year End (PYE) was always a time that everyone hated including me when I worked on support with Sage, it would be 8am to 8pm non-stop with there already being an hours queue by 8.01.  I’m not surprised mind with the multiple report printing, report reconciling, code changing, ‘Do I have a week 53?  I want a week 53’.

However, with the introduction of RTI, it becomes so much easier to complete your PYE and not hated so much with only 6 buttons to click instead of 16!

There is still a couple of things you need to be aware of and prepare for.

Payroll Year-End to-do list


Plan

  • Install the latest update. V27 was released with new features earlier in the year but Sage always release another update in mid-March with the new legislation updates (check your version under Help > About)
  • Process your final period. Remember PYE is 05/04/2021 so make sure you have processed all the way up to this date.  Including a Week 53 IF YOU HAVE ONE! You will only have a Week 53 if:
    • You last processed your weekly paid employees on Monday 29th March
    • You last processed your fortnightly paid employees on Monday 22nd March
    • You last processed your four weekly paid employees on Monday 8th March

    If you didn’t do any of the above DON’T GO LOOKING FOR ONE you’ll be disappointed.

  • Process any leavers who left on or before 05/04/2021.
  • Ensure you submit your final EPS (if applicable).
  • Decide how you are going to provide your P60’s electronically (get setup now for e-mail or online hosting) or printing.

Process 

  • Set your process date to 05/04/2021.
  • Click Payroll Year End in the stack bar.
  • Select Tax Year 2020/2021.
  • Click Internet Submissions.
  • Produce your P60’s and distribute.
  • Take a backup and click Complete Year-End.

Payroll End Process Map  

Payroll Year End

Process Map

Get ready for the new year

  • Check you are using the right version (to be confirmed)
  • Update your employees’ tax codes

Suffixed with L: increase the numeric value by seven

Suffixed with M: increase the numeric value by eight

Suffixed with N: increase the numeric value by six

This can be done by using Global Changes (Tasks > Global Changes > Tax Code > Apply Tax code change where code has Suffix)

Also clear any week1/month1 flags (Tasks > Global Changes > Tax Codes > Clear wk1/mth1 flag) and check your IR Secure Mailbox for any tax code notifications.

  • If you’re eligible for Small Employers Relief select the check box under Company > Settings

Other things you can do for your Payroll Year-End

So doing all of the above will keep you on the right side of HMRC and you are now ready to process your payroll in the new year.  Now you can clean up your software so you can be left with a nice and clean pay elements screen.  The steps below will allow you to remove the pay elements from all employees records and then in turn delete them from the company altogether.  Don’t worry it will not affect anything historical from previous years and this can all still be reported on.  This is just going to clean up the system from 6th April going forward.

  • Click Criteria at the top of your screen and remove the tick out of Exclude Employees who are: On Hold / On Holiday / Current Year Leavers / Historical Leavers (make a note of who you had ticked) > click OK.
  • Press the Swap button at the top of the window and make sure that all employees in the list are selected.
  • You’re now going to user Global Changes to remove unwanted payments/deductions/loans. Tasks > Global Changes > payment / deduction / loan > Remove payment / deduction / loan.  You can then select multiple elements you wish to remove from the employees.
  • Once this is done you still need to remove them at company level. Go to Company > Pay Elements > Payments  / Deductions / Loans and select the elements one at a time and click

You should now be left with a lot slimmer / cleaner version of your pay elements making it a lot cleared on which ones you use and getting rid of the duplications causing you headaches.

Conclusion

We hope this helps you with your Sage Payroll Year End process. If you need any help or support please don’t hesitate to give us a call on 01824 780000 or email us at info@itassolutions.co.uk