Payroll yearend 2011


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Payroll yearend 2011

  1. 1. Payroll Year End 2010/2011 Charlotte Ainsworth
  2. 2. Payroll Year End Fire Exit Toilets Mobile Phones Questions Handouts & Questionnaire
  3. 3. Payroll Year End Coffee Break: 10.30am Finish: 12.00pm
  4. 4. Sage Payroll 2011 New Features Installation & Licensing Reporting Pension Management Error Recovery Usability Improvements HMRC Compliance E-Banking
  5. 5. Sage Payroll 2011 New Featurescontinued Simplified installation and registration  Reduced the number of steps from 7 to 5 Steps: Insert CD Accept Licence Typical Current Settings Restart PC
  6. 6. Sage Payroll 2011 New Features Registration  Microsoft .NET 3.5 will be installed if not already as required for the new v3 Internet Submissions Module  Sage 50 Payroll 2011 is now compatible with 64Bit Operating Systems, XP, Vista and Windows 7 Number of company breaks have been rationalised:  1, 2, 3, 4, 5, 10, 25 and unlimited
  7. 7. Sage Payroll 2011 New Features Reporting  Sage 50 Payroll 2011 has adopted the Sage 50 Accounts report designer offering improved usability  Drag & Drop functionality  One Click Properties Menu  Re-Group and Sort Reports using a hierarchical structure  Easy filter creation  Preview screen now allows simple report editing „on the fly‟  Program includes more export choices when saving a report file including, XML, XLS 97 to 2007.
  8. 8. Sage Payroll 2011 New Features Additional E-Mail functionality  Request a read receipt when sending payslips and P60‟s via e-mail  Name the attachment sent to the recipient  Includes functionality for e-mailing from an SMTP type e-mail provider
  9. 9. Sage Payroll 2011 New Features  Report Locations  Sage 50 Payroll 2011 offers 3 user defined folders allowing different permutations of how reports can be stored and used by other users, and within different companies: USERS COMPANY(S)LOCAL Single Terminal All Company(s)C:ProgramDataSagePayrollReportsUserDefCOMPANY All Networked 1 CompanyC:ProgramDataSagePayrollCompany_XXXUserDef TerminalsCENTRAL All Networked All Company(s)C:ProgramDataSagePayrollReportsUserDef Terminals  NOTE: For users on XP or earlier the path will begin C:Program Files rather than C:ProgramData
  10. 10. Useful „Ask Sage‟ Articles Sage 50 Payroll 2011 Report Designer 26448 An Introduction to Report Designer 26587 The new Report Designer 26510 How to find your old Report Designer options in the new Report Designer
  11. 11. Sage Payroll 2011 New Features Salary Sacrifice Pension Scheme  Under a salary sacrifice pension scheme there are no contributions from employees out of their net pay.  Instead the employer contribution is increased, in return for the employee agreeing to an equivalent reduction in their gross salary.  When a employee is assigned a pension scheme that is set up as Salary Sacrifice the following details need to be recorded:  Reference Salary i.e. salary before the sacrifice  How they are sacrificing i.e. fixed amount or percentage  How much they are sacrificing i.e. amount or percentage value
  12. 12. Sage Payroll 2011 New Features Processing Salary Sacrifice Pension  The Employee‟s Taxable Gross Pay (to be included in the calculation for Tax and NI) is the post sacrifice value.  The employer contribution is now equal to the amount the employee is sacrificing, plus any additional contribution made by the employer.
  13. 13. Sage Payroll 2011 New Features Payslips & Reports  In accordance to HMRC guidance the sacrifice value appears as a negative payment, in the left hand column on the payslip.  Any legislative reports that show gross pay i.e. P11 Deduction Cards will show the post sacrifice value.  The following calculations will be made on the new lower salary (post sacrifice):  Student Loans  Attachment of Earnings  Holiday Funds  Average Weekly Earnings for Statutory Payments NOTE: The Nominal Link default postings will be the Pre-Sacrifice Salary as a DR to Payments on P&L and the Sacrificed Salary as a CR to the Pension Balance Sheet account
  14. 14. Sage Payroll 2011 New Features Automatic Backups  An archive folder has been added in to the Company_XXX folder and will be used by the system for storing automatic backups.  The backup is taken during the update wizard, prior to the records being updated.  The file names are constructed using a prefix to represent the pay period followed by the date & time.  The automatic backups option is switched on by default but can be disabled via Desktop – Options.  Go to: File – Recover to retrieve an automatic backup file. Only the backups created for the current tax year, based on the current process date, are listed to recover.
  15. 15. Sage Payroll 2011 New Features Usability Improvements - Starters  Create a new employee „Quick Link‟ added  Can record P46 info via Quick Employee option  Employee Record – Can now enter P45 or P46 info  Also possible to submit the information electronically to HMRC from this screen.
  16. 16. Sage Payroll 2011 New Features Usability Improvements - Leavers  „Final Pay Run‟ tick box has been re-worded  Report will include  Outstanding Statutory Payments made  Holiday Fund amount paid  Number of days holiday still outstanding  Additional screen detailing information required  A „Quick Link‟ added to make an employee a leaver  Report preview option added to the leaver wizard
  17. 17. Sage Payroll 2011 New Features Usability Improvements – Pay Elements  Can now create new pay elements „on the fly‟ while in „Enter Payments‟ screen and amend existing pay elements  Further short-cut buttons added to:  Add Deduction  Add Attachment  Add Loan
  18. 18. Sage Payroll 2011 New Features Usability Improvements – Payment & Deduction Imports  Assign Employee Payments  Assign Employee Deductions NOTE:  Located in: C:Program FilesSage PayrollCSV Templates  If pay element set to Global, hours and rates info ignored  Factored pay elements will use the rate as the mulitplier.
  19. 19. Sage Payroll 2011 New Features Further Usability Improvements & HMRC Compliance  Nominal Link Accounts Integration drop-down list  Sage 50 Payroll 2011 enables the user to e-mail employees a copy P60 with password protection  1st October 2010 National Wage Minimum Rates included  Automatic Version Checking against Process Date  Sage 50 Payroll 2011 e-banking now also includes Bank of America and Santander
  20. 20. Objectives Make Payroll Year End 2010/2011 as stress-free as possible, by highlighting some important checks which can be started straight away. Remind you of the processes involved and the critical Year End submission deadlines.
  21. 21. Agenda Before  What is Payroll Year End?  Statutory Forms Explained  Key Dates  Immediate Checks!  HMRC Internet Submissions  Hardware/Software/Backup Requirements  Support Sources  Important Information  Install Update CD  Process Final Pay Periods  Final Checks prior to Year End
  22. 22. Agenda During  Sage Payroll Year End Processes  Producing Year End Reports  Reconciling the Reports  Completing Year End Process  Submitting Year End Returns  Checks before processing new Tax Year After  What‟s Next?  Hints „n‟ Tips
  23. 23. What Is Payroll Year End? At the end of the tax year all companies are required by law to submit Payroll Year End Returns. HM Revenue & Customs need the returns to oversee the PAYE and National Insurance deductions made from your employees, and to ensure that any statutory payments, e.g. SSP and SMP, have been made according to Government legislation. Sage Payroll offers a Payroll Year End Wizard and Payroll Year End Process Map to guide you through the whole year end routine. From producing the necessary forms, to clearing the payroll figures ready to process the new tax year.
  24. 24. Payroll Year End Forms Explained P60 Employee‟s End of Year Certificate  P14 paper copies will are no longer be accepted by HMRC.  PAYE legislation has changed and you can now choose to provide employees with an electronic copy of their P60, you may still want to provide a paper copy.  Hand out to those in employment at 5th April 2010 by 31st May 2010 P35 Employer‟s Annual Return  P35 Front Sheet -Check list / declaration to ensure all required forms are submitted to the HMRC.  P35 Deductions Working Sheet – Total Employee and Employer contributions for each employee and PAYE.  P35 Section 2 – NI, PAYE, SSP, SMP, Tax Credits and Student Loan totals for all employees. NOTE: Run P35 Wizard before printing!
  25. 25. Payroll Year End Forms Explained continued… P11 Deduction Card (NIC Details)  Earnings broken into bands, total employee and employer contributions, SSP, SMP, SAP, SPP and Student Loans.  Change of NI category and sub-totals for each category.  Kept by the employer for 3 years in case of HMRC inspection. P11 Deduction Card (PAYE Details)  Employees payments and deductions for PAYE broken down by payment period for tax year. Also includes Tax Credits.  Kept by the employer for 3 years in case of inspection. P32 Employer’s Payment Record  Employer should complete for each payment made to HMRC.  NI, Tax, Statutory Payments, Student Loans and Tax Credits per tax month.  Print for all 12 months, and keep for 3 years in case of inspection.
  26. 26. Key Dates Sage dedicated Payroll Year End Website launched: February And Deadline to register to download Year End Pack instead of postal desptach: February Planned start date for despatch of Payroll Year End packs.28th March Sage Telephone Support Extended Opening Hours (Excluding Bank Holidays: 8am – 6pm)To 27th May 25th March Should have received your Sage Payroll Year End Update Pack (if requested). You can also download packs from the Sage Payroll Year End dedicated website: 5th April End of 2010/2011 Tax Year. 6th April Start 2011/2012 Tax Year. 22nd April Deadline for electronic payments to be received by HMRC. (Cleared no later than last working day before).. Planned start date for despatch of Tax Parameter leaflets if applicable. 26th April 7th May Details of Tax parameter changes should have reached you. 19th May P35 and P14 Year End Returns must have been received by HMRC – electronically! 31st May P60 Certificates must have been received by all employees working for your company on 5th April 2011. 6th July P11D returns should have been submitted to HMRC. 19th July Class 1A NIC payments should have been received by HMRC.
  27. 27. Immediate Checks Check Valid SageCover Contract NOW! Prerequisite for Year End support & Year End Update pack. If due to expire before 5th April 2011 call to renew: 0800 33 66 33 Check Sage have your correct contact details at: Correct E-Mail & postal address details Check Sage Website Login Details in Internet Options Tools → Internet Options and go to the „Sage Account‟ tab Sage 50 Payroll Year End Pack Sage Payroll Year End Guide 2011/2012 Legislative Update (Incl. updated report layouts for P60‟s!)  Can be downloaded from Program Download (Approx 137 Mb) User Guide Download (Approx 0.6 Mb)  Should be received by 25th March 2011 any problems contact Customer Services on 0845 111 66 66.
  28. 28. Immediate Checks continued…. List PC‟s with Sage 50 Payroll & note Program Directory Help → About → System Information tab → Directories Check Your Sage Payroll Version To ensure PAYE & NI 2010/2011 calculations are correct: Help → About → General tab Sage 50 Payroll 2011 v17.00.xx, v17.01.xx Sage 50 Payroll 2010 v16.01.xx, v16.03.xx, v16.04.xx Sage 50 Payroll 2009 v15.04.xx, v15.06.xx, v15.07.xx Sage 50 Payroll 2008 v14.07.xx, v14.09.xx, v14.10.xx Sage 50 Payroll 2007 v13.10.xx, v13.12.xx, v13.13.xx Sage Payroll v12.13.xx, v12.15.xx, v12.16.xx [Sage Payroll v11.16, v11.18]
  29. 29. Immediate Checks continued…. Check Your Stationery NOW! P60s only if you want to provide a paper copy to the employees Check the stationery is for the current year. HMRC only accept returns on the correct stationery for tax year 2010/2011 Check you have enough P60s for each employee, with extra for test prints Stationery can be ordered from Sage: Telephone: 0800 33 66 33 Website: To E-Mail P60‟s please refer to Ask Sage Article 25530NOTE: Stationery can also be ordered directly from HMRC Employer Orderline!
  30. 30. Immediate Checks continued... Check your Access Rights Log in to Sage 50 Payroll as MANAGER and go to: Tasks → Security → Access Rights Select your own User Log-In: Access Level 9 is required (Include lower levels) Access to: – Employee – Company Settings – e-Submissions – Payroll Year End – Reports – Backup NOTE: If you use a MANAGER login you will not have to do this step!
  31. 31. Immediate Checks continued… Check Company Details are correct in Sage 50 Payroll Company Toolbar → Settings (will appear on P14s) Tax District / PAYE Reference in HMRC Payslip Booklet P308B Check ECON & SCON numbers are valid and correct Invalid numbers may cause your Year End Return to be rejected. E.g. 1234567E on Contracting Out Certificate. Check And Enter Funding Details For Each Month E.g. HMRC Payments, Statutory Payments, Tax Credits, or Tax Refunds to ensure the P35 information is correct. Check Nominal Link Settings NOTE: All of the above are checked in Company Settings!
  32. 32. Immediate Checks continued… Check Tax Parameters Correct Company Module → Legislation Perform Data Health Check! Will identify any inconsistencies within your data. eg. missing periods Check your E-Submission Settings within Sage 50 Payroll Essential for submitting on-line Returns Entering details will by pass Login stage when accessing HMRC Website Enable the RSS News Feed Service
  33. 33. HMRC Internet SubmissionsHM Revenue & Customs online servicescan save you time completing, printingand posting statutory forms. Large and Medium Employers: Employers of more than 50 employees, already mandatory to submit returns and make payments electronically. Small Employers: Employers of less than 50 employees need to submit online from last year!
  34. 34. HMRC Internet Submissions continued...Preparations for HMRC Internet Submissions If you have previously submitted Year End Returns Online  and log in. Click „Manage Services‟ and check:  Your Tax Office Number  Reference  Status is „Active‟  Held in: Company Settings and e-Submissions Settings in Sage 50 Payroll If you have not previously submitted Year End Returns Online  and click „Register‟ (new users) and follow instructions  When registering ensure you note your user ID and Password as HMRC no longer confirm the user ID in writing and is not displayed again  After registering an activation PIN will be sent and must be activated within 28 days of the date on the.  HMRC Online Services Helpdesk: 0845 60 55 999  E-Mail:
  35. 35. HMRC Internet Submissionscontinued... Enter User ID and Password (case sensitive) into Sage Payroll  e-Submissions → e-Submission Settings Check your Contact Details (If acting as an agent, select the „Submit As Agent‟ check box and enter relevant details).  e-Submissions → e-Submission Settings Check latest Internet Submissions Module Installed  Help → e-Submission Version Check
  36. 36. HMRC Internet Submissionscontinued…Technical Preparations for HMRC Internet Submissions  Check your .NET Framework Version  .NET Framework v3.5 will help make your new tax year update installation much quicker  
  37. 37. HMRC Internet Submissionscontinued…Technical Preparations for HMRC Internet Submissions 56K Dial Up or Broadband Internet Connection Microsoft Internet Explorer V6 or above If not you can download free of charge from the Microsoft website. 128-bit Secure Socket Layer (SSL) Encryption Enabled on Internet Browser Internet Explorer V6 defaults to 128-bit encryption but best to check: Check in Internet Explorer: Tools → Internet Options, „Advanced‟ tab, Security Settings: Check „Use SSL2.0 and Use SSL3.0 check boxes set. Ensure Firewall will permit Sage 50 Payroll Access
  38. 38. HMRC Internet Submissionscontinued…Preparations HMRC Internet Submissions Download Sage Internet Submissions Update: Help → e-Submission Version Check in Sage 50 Payroll If an update is required a message appears and depending on your current PC version the update may be mandatory or optional so read the message carefully. If the latest version is already in use a confirmation message appears. Click „OK‟ to acknowledge this message as no update is necessary. To download the update click „Yes‟ and a File Download window appears. The file size is approx 5MB so may take a few minutes. When download complete a message appears: „E-Submission update will now be installed. To ensure a successful installation you must shut down payroll.‟
  39. 39. HMRC Internet Submissionscontinued…Preparations HMRC Internet Submissions Click OK to close Sage 50 Payroll in the background. The Sage Payroll Submissions – Welcome window appears, so click „Finish‟ and then click „Accept Licence‟. A message then asks if you know which installation is to be upgraded so click „Yes‟ if you know and if the installation shown matches the path noted earlier, click „Open‟. If however, it‟s not the correct one, browse to the relevant folder and then click „Open.‟ The Internet Submissions module installs and after a short delay, a message is displayed advising the installation process is complete. So click „OK‟ to confirm this message and the download and installation of this module is then complete.
  40. 40. HMRC Internet Submissionscontinued…Preparations HMRC Internet Submissions NOTE: If you are not using the latest version of the Internet Submissions Module when you come to submit the returns on line, a message will automatically appear advising that an update to this feature is available. So it will be necessary to download and then install the latest version prior to completing the Internet Submissions. If submitting as an Agent on behalf of your client you must have:  Obtained the HMRC Agent Reference  Registered and enrolled for the Agent service with HMRC  Activated your Agent service with in 28 days of receipt of  User ID & Activation PIN  Given your Clients your Gateway Identifier
  41. 41. Hardware/Software/Backup RequirementsMinimum Hardware/Software Specification Compatible Operating Systems:  Microsoft Windows 7  Microsoft Windows Vista  Microsoft Windows XP Service Pack 3  Microsoft Windows Server 2008  Microsoft Windows Server 2003  Microsoft Windows 2000 – Sage 50 Payroll 2010 and below only NOTES: Ensure latest Microsoft updates are installed. Sage 50 Payroll is limited to only one installation on PCs using MS Windows Vista and MS Windows 7.
  42. 42. Hardware/Software/Backup Requirements continued …Minimum Hardware/Software Specification NOTE: On 13 July 2010, Microsoft withdrew extended support for their Windows 2000 and Windows XP Service Pack 2 operating systems. Consequently Sage 50 Payroll is no longer developed or tested to support these operating systems. If using Microsoft Windows 2000, speak to your IT specialist about upgrading the operating system. If using Microsoft Windows XP Service Pack 2, install Service Pack 3. For further information about system requirements for Sage 50 Payroll please see Ask Sage Article 1103
  43. 43. Hardware/Software/BackupRequirements continued … Minimum Requirements of PC where New Tax Year Update is to be run:  IBM compatible PC with Pentium 1 GHz processor or above  512 MB RAM  700 MB of free disk space after Windows has been installed.  Internet Explorer V6 or above  CD Drive  Network Users: 100Mbps network with Microsoft Windows Networking
  44. 44. Hardware/Software/BackupRequirementsBackup Requirements  Before – 2  During – 2  After Year End Process - 2 NOTE: If backing up to a CD, USB port (memory stick), zip or network drive ensure you store the backups in different folders, or use different file names to each backup taken.
  45. 45. Support Sources HMRC Website - Sage Year End website - Lists of most commonly asked Year End questions and their answers Demos, Downloads, Current Issues, Payroll Year End Pack & Installation Guidance Access to „Ask Sage‟ database - more than 10,000 questions & answers Sage email support - 48 Hours Turnaround (Incl. Sage Payroll Serial No. in Subject Line) Sage telephone support - 0845 111 55 55 (Sage Serial Number) Monday 28th March – Friday 27th May: 8am to 6pm (Excluding Bank Holidays) Prosys Level 2 Support Service Telephone & Remote Support
  46. 46. Important Information Install New Tax Year Update CD As Soon As Possible As This Contains The Correct P60 Layouts And So Must Be Done Before Processing Year End! You can process New Tax Year Payroll Before Completing Year End Returns – Of more relevance if run weekly or fortnightly! (Up to 19th May 2011 to submit Year End Returns) Version 11 – End of Life! Not supported from 5th April 2011 No Year End Pack But can download Year End Guide in March 2011 So if using Payroll v11 must upgrade before start processing the new year!
  47. 47. Installing Update CD Double-Check Program Version as on earlier slide. Check PC meets Minimum Hardware Requirements: Ask Sage Article 1103 „What are the system requirements for Sage Payroll?‟ for further details. Double-Check Current Installation Path: Help → About → System Information → System Information tab Ensure you are logged on the PC as Administrator or User with full admin rights Ensure all other users are logged out off Sage 50 Payroll, Backup - 2 copies! And close all programs, including Sage 50 Payroll Insert CD and set up program will usually run automatically. If not, click „Start‟ – „Run‟ and type D:SETUP.EXE. Click „OK.‟ (If CD drive is not D then use other appropriate letter!) Click „Install.‟ However, if using MS Windows Vista or Windows 7, open start menu and type in search box. Or: If installing from download and double click „SGPAYROLLPYE11.EXE‟ .Click „Run‟ and then click „Finish.‟
  48. 48. Install Update CD Continued… From the Sage Payroll Year End 2011/2012 tax year update window, click Install Update. Window appears displaying details of the Sage 50 Payroll software installed on the PC. Click „Upgrade your installation of Sage 50 Payroll.‟ The Welcome window will appear displaying the Software Licence Agreement. Click „Accept Licence‟ to accept the Terms and Conditions. The Important Notice window will appear – Ensure the tax year displayed is 2011/2012 and Click „Next‟ to continue. If the year displayed is not 2011/2012 you are using the wrong CD so quit the installation immediately! Ensure the path displayed is the same as the one noted earlier in Sage 50 Payroll and if so click „Yes‟.
  49. 49. Install Update CD Continued… If the path is not correct click „No‟. When prompted „Do you know which installation you want to upgrade?‟ click „Yes‟ and in the Open window, locate the correct programme folder, then click „Open‟. A progress bar appears, displaying the progress of the installation. Once the installation is complete, a message appears recommending you restart your PC , click „Yes‟ to restart now or click „No‟ to do so later. If you choose to restart your PC now, do not remove the CD until the PC has started. If on server no need to restart. If you have a multi-user version of Sage 50 Payroll, before accessing the data, install the new tax year update on each PC running Sage 50 Payroll.
  50. 50. Install Update CD Continued…Upgrading Sage 50 Payroll Open Sage 50 Payroll and from the „Open Company‟ window, select the required company, then click „OK‟ to upgrade the data. A message appears asking you to wait whilst the data updates. Click „OK‟ to continue. Enter User Name and Password to log on, set your process date and click „OK.‟ A message appears advising reports will now be updated, so click „OK.‟ Check your Sage 50 Payroll version for compliant Government Legislation for current Tax Year and ensure Tax Parameters are up to date by going into Help → About.
  51. 51. Install Update CD Continued…Upgrading Sage 50 Payroll Check your version has updated to one of the following: V17.01, v16.04, v15.07, v14.10, v13.13 or v12.16 If you have recently purchased an upgrade to Sage 50 Payroll 2011 and your version does not show v17.01, go to: Tools → Upgrade Program Check the Serial Number is correct and in the New Key box enter your new activation key. Click „Continue‟ and a message appears advising Sage 50 Payroll will now update your reports. Click OK, and check your version again.
  52. 52. New Tax Year Update InstallationVideo for Sage 50 Payroll
  53. 53. Processing Final Pay Periods Check if you have a week 53Due to process on Tuesday 5 April 2011? Payment Normal Tax Weeks to process in Frequency Processing Day 2010/2011 Tax Year Weekly Tuesday 1, 2, 3, 4, 5 … 51, 52, 53 Fortnightly Tuesday 1, 3, 5, 7, 9 … 49, 51, 53 Four Weekly Tuesday 1, 3, 5, 7, 9 … 45, 49, 53?Note: If your normal processing date is Tuesday 5 April, but you need to process your payroll earlier e.g. due to holidays, you must still set the process date in your software to the correct date, Tuesday 5 April 2011. Sage is compliant with government legislation and calculates PAYE using a week 1/month 1 free pay allowance in Week 53, not on a cumulative basis.
  54. 54. Processing Final Pay Periods Clear Employee Exclusion Criteria (except Historical Leavers) Process Final Payroll Period for all Payment Frequencies – Back up Sage Payroll Data – Run usual Pre-Update Reports – Update Payroll Period for all Payment Frequencies – Run usual Post Update Reports incl. the P32 for month 12 – Process Leavers to produce P45 prior to Year End (as removed from all future processing)NOTE: All outstanding attachment of earnings and statutory payment balances are automatically carried through to the new tax year and NICs for Directors using Table method will be recalculated. Post Nominal Link to Sage Accounts for all Payment Frequencies including leavers. Post e-Banking file if applicable. Make final PAYE & NI payment to HMRC.
  55. 55. Final Checks Prior to Year End SET PROCESSING DATE TO 5TH APRIL 2011! Run the Check Data facility E.g. Employee not updated for current tax year, start date is the same as the date of birth or the date of birth is in the future. Check all other users logged out View → Current Logins Check whether have a Week 53 Ensure all payment frequencies have been processed, updated, Nominal Link posted and all leavers processed. Clear any Employee Exclusion Criteria (except Historical Leavers). Check Tax, Statutory Funding and HMRC Payments in Company Settings and amend if appropriate. I.e. Statutory Payments, Tax Credits, or Tax Refunds to ensure the P35 is correct.
  56. 56. Payroll Year EndAfter the Break … Processing Payroll Year End 2010/2011 Reconciling Year End Reports What Next? Hints & Tips
  57. 57. Sage Payroll Year End Process Select Payroll Year End module in Sage Payroll You will now see the Payroll Year End Process Map Set Tax Year End & Reports Date - (Select Cessation Date if relevant) A message confirming that you have changed tax year will appear. Alternatively select Wizards → Payroll Year End, or Tasks Payroll Year End. Take 2 Data Backups “Before PYE 2010-2011 Set 1” “Before PYE 2010-2011 Set 2”
  58. 58. Sage Payroll Year End Processcontinued… Print & Check P11 Cards (NIC & PAYE) for Each Employee  Check Payment and Deduction Values E.g. There may have been incorrect payment values entered in Enter Payments and then updated.  Missing Periods on P11‟s E.g. A period may not have been updated or an employee was placed n hold after processing but before updating the pay period.  B/F Figures on P11‟s If you started to use Sage Payroll part way through the tax year and entered Year To Date values for the periods already processed. For more information on checking P11 Deduction Cards (NIC & PAYE) refer to your Sage Payroll Year End Guide and the Sage Reconciling Reports Booklets. NOTE: P11‟s will be used later to reconcile P32‟s and P35. Reports need to be kept for 3 years.
  59. 59. Sage Payroll Year End Processcontinued… Print P32 for Each Month & Check Against Payments Already Made To HMRC  Check your Statutory Payment funding details.  Check your Tax Refund funding details.  Check the Total Amount Due from the P32 reports you produce to the payments already made to HMRC. Print P60s for Every Employee For 2010/2011 Tax Year  Ensure you are using the correct P60 forms – showing 2010/2011 in top right-hand corner. (HMRC will not accept forms dated for a previous Tax year).  Run test print and make any necessary alignment adjustments. As submitting P14s via the Government Gateway only need to print P60s, or this year you could e-mail a copy to the employee.  Check against your P11 Deduction Card (PAYE Details) and (NIC Details) Backup Data x 2 “During PYE 2010-2011 Set 1” “During PYE 2010-2011 Set 2”
  60. 60. Sage Payroll Year End Processcontinued…Produce P35 and P38a Form – using P35 WizardP35 - comprises of 3 parts  P35 Parts 3, 4 & 5 Declaration: Check list to ensure all required forms are submitted to the HMRC.  P35 (CS) (Substitute) Deductions Working Sheet: Totals for PAYE & NI contributions per employee, paid during the tax year (current employment only).  P35 Part 2: Summary of payments made to HMRC during tax year.
  61. 61. Sage Payroll Year End Processcontinued…Produce P35 and P38a Form – using P35 Wizard P38a Form - Report is only produced if you answer „NO‟ to question 1 in P35 wizard:  You must complete a P38A Form if you did not complete a P14 for an employee in employment during the tax year, or you did not complete a Form P38(S) for a Student Employee.  However, if each employee completed Statement A or B of P46 AND paid less than £97 per week, or £421 per month do not need to enter the individual details for those employees.NOTE: As submitting online print 1 copy keep for 3 years.
  62. 62. Sage Payroll Year End Process continued…Understanding where the P35 Figures are derived from? Front Sheet & Part 2 of Form P35 Figures are derived from P35 Wizard so must run Wizard first, although the Wizard Will show Tax and NICs already paid from:  Company Settings → HMRC Payments: (populated by one of the following methods) – Manually entered – Updated by P32 production each tax month – HM Revenue & Customs Payments via Collector of Taxes Wizard  Company Settings → Tax Refund Received, Statutory Payments & SSP Recovered Tables  YTD Values from Employee Records e.g. SMP/SPP/SAP Recovered, NIC Compensation, Student Loan Deductions
  63. 63. Sage Payroll Year End Process continued…Understanding where the P35 Figures are derived from? Front Sheet & Part 2 of Form P35  Received Tax-Free Incentive for submitting on line 2008/2009 tax year - £75 Amend HMRC Payments table to reflect actual payment made to HMRC and enter the figure in the Tax-free Incentive Payment Received field. Or if received incentive via a cheque from HMRC enter nothing in P35 Wizard.NOTE:If you have made a mistake re-run the Wizard as many times as you need!P35 (CS) (Substitute) Deductions Working SheetsNot dependent on P35 Wizard entries, so can be printed from Year End ReportsMenu.
  64. 64. Sage 50 Payroll Version 2011 Year End Demonstration
  65. 65. Reconciling Year End ReportsReports Needed : P11, P32, P35 Check P35 (CS) (Substitute) Deductions Working Sheets against P11 Deduction Cards  P35 (CS) (Substitute) Deductions Working Sheet „NIC Column‟ = „Total of Employee‟s and Employer‟s Contributions‟ Figure in „Column 1e‟ on P11 Deduction Card (NIC Details)  P35 (CS) (Substitute) Deductions Working Sheet „Income Tax Column‟ = „This Employment‟ Figure in Column 6‟ (Total tax due to date as shown by Taxable Pay Tables) on each employee‟s P11 Deduction Card (PAYE Details)
  66. 66. Reconciling Year End Reportscontinued…Eg: Check P35 (CS) (Substitute) Deductions Working Sheets to P11 Deduction Cards P11 Deduction Card (NIC Details) - Column 1e P11 Deduction Card (PAYE Details) -‘This Employment’ Figure in ‘Column 6’
  67. 67. Reconciling Year End Reportscontinued… Check P35 (CS) (Substitute) Deductions Working Sheet against P35 Section 2  P35 (CS) (Substitute) Deductions Working Sheet and P35 Section 2 report figures are derived from the same part of the system, so only need to reconcile two values: Form P35 (CS) (Substitute) P35 Section 2 Deductions Working Sheet Income Tax Deducted / Refunded – Box 5 (Income Tax) – Totals from Grand Total continuation sheets National Insurance Contributions Box 2 (NICs) – Totals from continuation (NIC) – Grand Total sheets This will mean that you do not have to reconcile your P35 (CS) (Substitute) Deductions Working Sheet against your P32
  68. 68. Reconciling Year End Reportscontinued…Example: Checking P35 Deductions Working Sheet against P35 Section 2 P35 Part 2 P35 Deductions Working Sheet
  69. 69. Reconciling Year End Reportscontinued… Check P35 Section 2 against P32 Payment Summary  Figures on P35 Section 2 = Report Totals shown on the P32 Payment Summary reports (Add all 12 months together for P32 totals). Note: P35 shows pay in the current employment only, including any cumulative values entered part-way through the tax year. The P32 only shows figures processed in Sage Payroll and ignores cumulative values entered.
  70. 70. Reconciling Year End Reportscontinued…Example: Check P35 Part 2 against P32 Payment SummaryP32 Payment Summary Report P35 Section 2
  71. 71. Reconciling Year End Reportscontinued… Example: Check P35 Part 22against P32 Payment Summary continued… P35 Section P32 Payment Summary ReportBOX 2 - (NIC) Totals from continuation FIGURE 4 – Gross National Insurance (12sheets marked „R‟ Months)BOX 5 – (Income Tax) Totals from FIGURE 1 – PAYE Income Tax (12 Months)continuation sheets marked „R‟BOX 7 – Received from HMRC to refund tax Tax Refund Received values at bottom of P32s if entered details into table within Company Settings (12 Months)BOX 10 – Total Student Loan deductions FIGURE 2 – Student Loan deductions (12(whole £‟s only) Months)BOX 12 – SSP Recovered FIGURE 5 – SSP Recovered (12 Months) – (Value only appears if entered via Company Settings or SSP Recovered check box is set when running P32s)BOX 13 – SMP Recovered FIGURE 6 – SMP Recovered (12 Months)BOX 14 – NIC Compensation on SMP FIGURE 7 – NIC Compensation on SMP if due (12 Months)
  72. 72. Reconciling Year End Reportscontinued… Example: Check P35 Part 2 against P32 Payment Summary continued… P35 Section 2 P32 Payment Summary ReportBOX 15 – SPP Recovered FIGURE 8 – SPP Recovered (12 Months)BOX 16 – NIC Compensation on SPP FIGURE 9 – NIC Compensation on SPP if due (12 Months)BOX 17 – SAP Recovered FIGURE 10 – SAP (12 Months)BOX 18 – NIC Compensation on SAP FIGURE 11 – NIC Compensation on SAP if due (12 Months)BOX 20 – Received from HMRC to pay Relevant details into the Company SettingsSSP/SMP/SPP/SAP → Statutory Funding → Statutory Funding Received table, the value appears in the table at the bottom of the P32s beside SSP/SMP/SPP/SAP Funding Received.
  73. 73. Reconciling Year End Reportscontinued… Check P32 against P11 Deduction Cards (optional)  This information can be checked but is very time consuming. P32 and your P11 Deduction Cards derive their information from the same source – each employee‟s updated pay period values. They should therefore be the same. Eg When running P32 for month 1 its values are the sum of the P11D Deduction Card entries that are updated for the employee for that month.
  74. 74. Completing Sage Payroll Year EndProcess Take 2 Data Backups – “During PYE 2010-2011” NOTE: Up to this point you can restart your Year End if necessary (by clicking restart Year End button in bottom right hand corner of your process map). Merge Data (if applicable)  Only if more than one company in Sage 50 Payroll using the same Tax District/Ref No. and wish to submit Year End Returns to HMRC online. Files Required:  The Multi-Company Data Merge Utility  A guide to the Multi-Company Data Merge Utility in Sage 50 Payroll Go to: Help → Information Centre Click on „Guides‟ and then click on „Merging Your Data in Sage 50 Payroll‟. Also see: Ask Sage Article 15489
  75. 75. Completing Sage Payroll Year EndProcess continued… Internet Submission - P14, P35 & P38A NOTE: When submitting electronically, remember to still print employee‟s P60s for distribution, and a copy of the P35 for your own records. NOTE: Print and check all reports before using Internet Submissions as the process can not be reversed!  Click on Internet Submissions option on the Sage Payroll Year End Wizard or Process Map.  If prompted select the type of forms to submit from the drop- down list and click „Submit‟ (only prompted to select forms if a P38A has been produced).
  76. 76. Completing Sage Payroll Year EndProcess continued… Internet Submission - P14, P35 & P38A  To view the information Sage captures during the submission process, from the Important Notice window, use the „Click here‟ link, print out the details if required and click then click „Continue‟ to proceed.  From the „Check your Details‟ window, check the details are correct and then click „Submit‟.  If the preparation process detects any issues, the Errors & Warnings window appears to advise of you of any detected data problems.  Errors must be corrected before continuing so click „Cancel‟ and manually amend in the software. Eg Missing employee name. Warnings are listed and automatically adjusted for the submission. To view further information click on the error or warning highlighted in blue.  HMRC rejects submissions where employee details are missing or contain any invalid characters, Sage Payroll will automatically check and list any employees affected.  If invalid Characters are found Employee details in Sage Payroll are not changed so should be done later, manually.
  77. 77. Completing Sage Payroll Year EndProcess continued… Internet Submission - P14, P35 & P38A  An Important Information Window appears where you should check the data against the reconciled forms to ensure the correct number of employees are included in the submission and the overall totals agree. If not correct click „Cancel‟ to stop the submission and reprint the P35 reports to check nothing has changed in your programme since running P35 wizard or to continue click „Submit‟.  Sage Payroll then attempts to submit the forms via the Government Gateway, and displays the Sending Your Data To HMRC widow. The process may take some time, depending on data size of the submission, internet connection speed and current demand. If you receive a constant Gateway busy message, please refer to Ask Sage Article 23843.  When complete a message is displayed to confirm whether the submission was successful or not. Use „Click here‟ link to view details of submission. If submission has not been successful the „Finished‟ window displays a submission failure message, click „More Info‟ to list further details of submission failure. If successful use the „Click here‟ link to print details of the submission.
  78. 78. Completing Sage Payroll Year EndProcess continued… Internet Submission - P14, P35 & P38A  To complete the process, click „Close‟ and return to the main menu.  Print and keep a copy of the Sage 50 Payroll submission log and the HMRC confirmation e-mail sent to „Contact Details‟ e-mail address entered in „e-Submission Settings‟ with subject: „Successful Receipt of Online Submission for Reference <your ref>‟ NOTE:  If you do not receive this e-mail then contact HMRC‟s online Helpdesk on: 0845 60 55 999.  If after completing the Internet Submission that option is not ticked on the Year End Wizard or Payroll Year End Process Map, it is because a P38A Wizard was run whilst generating the P35 but the user didn‟t select P14/P35 and P38A option when initialising the Internet Submission process. You must remember to submit the forms not included originally.  Sage 50 Payroll does not support partial submissions!
  79. 79. On-Line Submission of Year EndReturns Video
  80. 80. Completing Sage Payroll Year EndProcess continued… Complete Year End Process on Each Company Data Set  Removes all cumulative YTD values ready for 2011/2012 and historical data of more than seven years old (unless amended in Company Settings)  Carry over outstanding balances for SMP, SPP, SAP  Carry over all cumulative values and outstanding balances for attachment of earnings. Attachment Value YTD is cleared to zero.  Remove any loans that have been completed in the tax year and carry over outstanding values for active loans.  Transfer mileage records ready for 2011/2012.
  81. 81. Completing Sage Payroll Year EndProcess continued… Take 2 Data Backups  “After PYE 2010-2011 Set 1”  “After PYE 2010-2011 Set 2” Distribute Year End Returns within HMRC Deadlines  Submit Year End Returns on Line to HMRC by 19th May 2011: – P35 Employer‟s Annual Return – P14 End of Year Summary – P38(A) Employer‟s Supplementary Return (if applicable)  Distribute P60s to those employed as at 5th April 2011: – P60 End of Year Certificate (blue copy) by 31st May 2011 – Destroy P60s if no longer employed by 31st May 2011
  82. 82. Sage 50 Payroll Year End Multi-Company TasksIf using Multi-Company feature to Perform Year End Process onSeveral Data Sets it is Possible to do the Following Tasks At Once Enter e-Submission details Print P11 Deduction Cards Print P60s Update tax codes for the new tax year Remove Week 1 / Month 1 FlagsHowever, P35 Wizard must be run individually in each companyBefore using Multi-Company Options you Must: Take a back up of each dataset Ensure you have sufficient user access rights Log on with a user name and password which is common to each company Ensure all other users are logged out of each dataset or the relevant task may not complete successfully. See Ask Sage Article 11676 for further information.
  83. 83. Checks before processing NewTax Year Check updated final pay period for all pay frequencies  Check „Last Updated‟ Column or Employee History  Important to ensure relevant info appears on P11s & Year End Returns. Check you have installed the Update CD so compliant with Government Legislation for new tax year.  Help → About → General tab Program version must be: v17.01, v16.04, 15.07, v14.10, v13.13, or v12.16 If the software does match one of these versions and you have already installed the new tax year update, contact Sage Support on 0845 111 5555 or Prosys Computing if you have our Level 2 Support Service! Update your Tax Codes  L suffix tax codes increase by 100 e.g. 647L becomes 747L from 6/4/2011.  Emergency Tax Code of 747L will be set by installing new tax year update
  84. 84. Checks before processing NewTax Year continued… Employee Tax Code Changes Notified with P9(T) Form  Amend manually or electronically if using the IR Secure Mailbox Remove Week 1 / Month 1 Flags  To ensure tax calculates correctly in the new year, remove the wk1/month 1 flags  Tasks → Global Changes → Tax Codes → Clear W1/M1 Flag Advance Holiday and Absence Years (If runs from April)  Tasks → Advance Holiday Carries unused holidays if permitted, and Holiday Fund Paid Zeroed Check whether Small Employers Relief Option should be set in Company Settings and amend if necessary. (Whilst process date is set to 6th April 2011 or later). Change your Process Date 06/04/2011 and Start Processing in the new Tax Year!
  85. 85. To Return to a Previous Tax Year End Take a Backup! Change Processing Date to relevant Tax Year End to: E.g. 5th April 2011  Check Government Legislation  Check Tax Funding Details in Company Settings  View Prior Year End Reports (Under Previous Tax Years) To process Year End follow the usual Year End Routines (after taking data backups), by accessing the Year End Wizard or Year End Process Map, where you will need to select the relevant year. Change Processing Date again to continue processing in 2010/2011 Tax Year!
  86. 86. What Next?! Tax Parameter Changes Later in the Year  Spring Budget takes place in late April  Sage will notify in writing relevant changes after Payroll Year End P11D Deadlines  6th July 2011 - Class 1A NIC forms to HMRC  19th July 2011 - Class 1A NIC Payment to HMRC Sage P11D Software  P11D software will import a lot of information from Sage Payroll  P11D software will also enable you to submit forms electronically.  DONE MONTHLY BUT SUBMITTED QUARTERLY.  1/4ly P46(CAR) cars to local tax office
  87. 87. Hints and Tips! Backups! Check Data Print P60s after completion of P35 Wizard & Reconciling Reports Or may have to reprint P60s once corrections made. Printing Additional Copies of Reports and Forms E.g. P14/P60 Reports – Year End (select relevant Tax Year) Always Preview Reports Before Printing Then can check details, and amend alignment if necessary! Sage Payroll Year End Pack Payroll Year End Guide 2011 /2012 Update CD