The process for completing the tax year is much easier under PAYE modernisation. There's no longer any need to submit a year end return or run the P35 or P60 reports.
Before you get started in the 2023 tax year, for each of your payrolls, you need to complete the tasks in this guide. Let's take a look.
This is step 2 of the 3 steps to completing your Payroll year end. You can see all 3 steps here.
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Check Sage Payroll is up to date
Have you completed step 1? Install the latest update >
Check if you have an extra pay period
In the 2022 tax year, you have an extra pay period if the following applies:
Your normal pay day is a Saturday and your...
- Weekly paid employees were last processed on 24 December.
- Fortnightly paid employees were last processed on 17 December.
- Four-weekly paid employees were last processed on 3 December.
NOTE: Monthly frequency payrolls can't have an extra pay period.
If any of these appy to your payroll you can follow the steps in this handy guide to process your extra period.
Process your final pay periods of 2022
All payments that are due to employees in 2022 and processed in Sage Payroll 2022 must be paid to employees within the 2022 calendar year. Revenue's PAYE Modernisation rules advise that any payment given to an employee must be be submitted within the tax year it was paid. When setting a pay period, Sage Payroll will return an error if any of your pay dates fall outside of the 2022 tax year. To proceed, amend the dates entered to be within the 2022 tax year then complete processing as normal.
To process payments that fall on a bank holiday, ensure the Pay Date is set to the bank holiday date, but process the payment on the previous banking day. Read more >
Print your Employment Detail Summary report - optional
This report is a summary of each employee's pay and tax details with the company for the year. Read more >
Validate your payroll data
You can use the Validate Payroll Data option to check your payroll data for any issues that may cause your Revenue submissions to fail.
Housekeeping tasks at year end
Before completing the tax year, there are a few tasks you need to carry out. Read more >
What to do next
Once you've completed the 2022 tax year, you are ready to move onto step 3 to set up your software for processing in 2023.