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Set up your software for processing in 2022

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Summary

This guide shows you how to set up your Sage Payroll software for processing in the 2022 tax year.

Description

Once you complete your payroll processing in the 2021 tax year, you need to create the 2022 tax year for each of your payrolls.

Before you begin setting up the new tax year, we recommend you're using the correct version. Check your version >

This is step 3 of the 4 steps to completing your Payroll year end. You can see all 4 steps here.

Resolution

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Create and open the 2022 tax year

  1. Open Sage Payroll 2021 and log in to a payroll as normal.
  2. Click Year End, point to Tax then click Set up 2022 Tax Year.
  3. Follow the on-screen instructions then click Close.
  4. Close Sage Payroll 2021.
  5. From the Windows desktop, double-click Sage Payroll 2022.
  6. Log in to a payroll as usual.
    NOTE: Before you start processing in the new tax year, check your version is 25.0 or above. You can find this in the top left-hand corner of Sage Payroll.
  7. Repeat the above steps for all payrolls you want to use in 2022.

Set up the new tax year calendar

  1. Click Company/Payroll then click Calendar.
  2. Click the New Calendar tab.
  3. Enter the calendar details for period one of the new tax year.
    CAUTION: It is very important to enter the correct dates for period 1 of 2022 - the dates entered as 1st Pay Period Dates determine the dates used when setting later pay periods in 2022.
    Payroll Frequency First Pay Date/Period Date Range
    Weekly January 1 - January 7
    Fortnightly January 1 - January 14
    Monthly January 1 - January 31
    Bi-monthly January 1 - January 16
    4-Weekly January 1 - January 28
    Quarterly January 1 - March 31
    Typically your Period date and Pay date will be the same date within a period, but this may not always be the case. Both dates must be a date within the allowed date range for that period.  The Pay Date field is the date that you pay your employees wages/salary processed in the pay period. This date is included in every payroll submission to Revenue for your employees.
  4. Click Update - you will be returned to the Calendar Details tab where you can view all periods/dates for your payroll year.
  5. Enter your Financial Year Details.
  6. Click Save.

NOTE: You can view our helpful guide for more information about the payroll calendar. 


Set period one of the 2022 tax year

  1. Click Processing then click Set Period.
  2. In the New period to process box, enter 1.
  3. Confirm the dates and information are correct for the first period of 2022. If not, edit as required.
  4. When you've finished, click OK.
    NOTE: If your 2021 holiday year ended on 31/12/2021, you automatically receive the option to roll forward the holiday information. Read more > 
  5. Edit the settings if required, then click Continue Set Period.
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Clear your financial year end balances

The tax year runs from 1 January to 31 December, however your company's financial year may not coincide with these dates, for example, 1 August to 31 July.

NOTE: If your Financial Year end matches the Tax Year (in the payroll calendar), you'll automatically be prompted to Clear down financial balances when setting 1st period of 2022. 

This involves clearing any financial balances that you don't want in your new financial year and allowing that your reports (Cost Analysis, Payments, Deductions) to show the financial year information.

NOTE: You'll not see this panel if your financial year doesn't match the tax year. You can check your payroll calendar for when your financial year starts.


Enable CSO reporting, if applicable

If the Central Statistics Office (CSO) has selected your company for surveying and you haven't done so already, you must enable the CSO reporting option.


Assign ASC settings to your employees, if applicable

Additional Superannuation Contribution (ASC) calculations replaced Pension Related Deduction (PRD) in 2019. ASC is only relevant to public sector employees. If you have employees that are liable for ASC deductions in 2022, you must assign the appropriate ASC settings within their records. Find out how >


Validate your payroll data in 2022

  1. Click Reports then Validate Payroll Data.
  2. If any errors appear on this report, you must resolve them now.

What to do next

Once you've completed the sections above in each of your payrolls, you're ready to start processing your payroll in the new tax year.