2024/25 Year End Payroll Checklist Guide

As the end of the financial year approaches, it's essential for employers to ensure that their payroll processes are up to date and compliant with regulations. To help you navigate this critical period, we've compiled a comprehensive checklist to guide you through the year-end payroll tasks.

1. Verify Payroll Periods Before you start processing year-end payroll, confirm the end date of your payroll period. Ensure that all pay runs for the year have been completed accurately.

2. Process Final Pay Runs Complete your final pay run of the year, making sure to include any outstanding payments, bonuses, or adjustments. Double-check that all employee records are accurate and up to date.

3. Prepare P60s P60s are essential documents that summarise an employee's total earnings and deductions for the tax year. Ensure that all P60s are prepared accurately and distributed to your employees by the required deadline.

4. Reconcile Payroll Records Conduct a thorough reconciliation of your payroll records to identify any discrepancies or errors. Verify that all tax deductions, National Insurance contributions, and other deductions have been correctly accounted for.

5. Submit Year-End Declarations Submit your year-end declarations to the relevant tax authorities. This includes reporting your total payroll figures, tax deductions, and National Insurance contributions for the year.

6. Plan for the New Payroll Year As you wrap up the current financial year, start planning for the new payroll year. Update your payroll software, review your payroll policies, and ensure that you're aware of any changes to tax regulations or employment laws.

7. Communicate with Employees Keep your employees informed about the year-end payroll process. Provide them with clear instructions on how to access their P60s, and address any questions or concerns they may have.

8. Review Payroll Policies Take this opportunity to review your payroll policies and procedures. Identify areas for improvement and implement any necessary changes to streamline your payroll processes for the upcoming year.

By following this year-end payroll checklist, you can ensure a smooth and compliant transition into the new financial year. Stay organised, stay informed, and keep your payroll processes running smoothly.