Difference between revisions of "How do I close a payroll period?"

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== Summary ==
 
== Summary ==
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The following article explains how to close off a payroll period. This procedure must be followed when you have completed a period and you want to move into the next one. Please ensure you have run all the necessary reports and printed the payslips before proceeding.
+
The following article explains how to close off a payroll period.
  
−
== Pre-Period Closedown Checklist ==
+
== More Information ==
 +
This procedure must be followed when you have completed a period and you are ready to submit your ''FPS'' to HMRC.
 +
 
 +
{{Warning|text=Please ensure you have printed all the necessary reports and printed payslips before proceeding.}}
 +
 
 +
=== Pre-Period Closedown Checklist ===
 
* Check that all Payroll amounts for each employee are accurate and correct, including any '''Sick Pay, Holiday Pay, Adoption Pay, Maternity Pay and Paternity Pay.'''
 
* Check that all Payroll amounts for each employee are accurate and correct, including any '''Sick Pay, Holiday Pay, Adoption Pay, Maternity Pay and Paternity Pay.'''
  
−
* Check that you have run all the reports that you want for this period.
+
* Check that you have marked any employees as [[How do I add a payroll leaver?|leavers]] if applicable.
 +
 
 +
* Check that you have printed all the [[How do I run reports at the end of a payroll period?|reports]] that you want for this period, i.e. Payroll Analysis, Pension Contributions, Payslips etc.
  
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== More Information ==
 
 
Go into {{Menu|{{PR}}|Run Payroll Period}}.
 
Go into {{Menu|{{PR}}|Run Payroll Period}}.
−
*Click {{Button|OK}} at the {{DataPrompt|Payroll Selection}} window which opens the period you about to close.
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* Select the frequency to close then click {{Button|OK}}.
−
**If you run more than one frequency, e.g. a Monthly and a Weekly payroll, you must first select the period you would like to close by selecting {{Button|Yes}} alongside the appropriate {{DataPrompt|Payroll Frequency}}, e.g. {{DataValue|Monthly}}.
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* If you have not already done so [[How do I run reports at the end of a payroll period?|print]] the required reports.
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*Make sure you have produced any '''"End of Period"''' reports you need.
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* If you are outputting a file containing [[Links to pension providers|Pension]] data, make sure you have done so before closing the period.
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*Press {{KeyPress|F2}} to {{DataPrompt|Close Current Period}}.
 
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*A box will pop up asking you to be sure you wish to close the current period that says the following.
 
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{{Warning|title=WARNING|text=The payroll period below is about to be closed. You should only close a payroll period when '''All''' payroll functions for that period have been completed.}}
 
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*Click {{Button|Yes}} to proceed with closing the period.  
 
  
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=== Additions to Period End Procedure for RTI Submissions ===
+
=== Submitting the Full Payment Submission (FPS) ===
−
As of '''April 6th 2013''' (after your year end) with the addition of '''RTI (Realtime) Payroll Submissions''', there are some extra procedures that will need to be carried out. These are detailed below. Two of them, the EAS and the FPS, will be done automatically by your Platinum Software as part of the normal period end procedure; the EPS must be done manually once a month when necessary.
+
When you are ready to close the period and submit your ''FPS'' :
 +
* Click {{Button|Close}} or press {{KeyPress|F2}}.
 +
* Confirm you wish to proceed with closing the period and submitting your FPS to HMRC.
 +
* Click {{Button|Yes}} to proceed.
 +
 
 +
Your payroll period will be moved on to the next period and your FPS submitted electronically to HMRC.
 +
* When the submission has been successful, you may click {{Button|Print}} to print the summary then {{Button|Close}}.
 +
 
 +
* If any employees [[How do I add a payroll leaver?|left]] during this period you will be prompted to print their P45's.
 +
** At {{DataPrompt|Print from P45}} select the correct option from the dropdown menu i.e. If you have ordered P45 stationery from [https://www.gov.uk/government/collections/paye-forms HMRC] choose the relevant {{DataValue|on pre-printed form}} option else choose {{DataValue|on plain paper}}.
 +
** Click {{Button|Ok}} once you are happy it has printed successfully.
 +
** Repeat for any additional leavers in the period.
 +
 
 +
If you experience any difficulties submitting the FPS, please see [[Troubleshooting payroll RTI submission errors|this article]] for advice or {{SupportContact}} for assistance.
 +
 
 +
{{Warning|text=|At the end of each Tax Month don't forget to submit your {{Button|EPS}}. See steps below.}}
  
−
==== Full Payment Submission (FPS) ====
+
== Submitting the Employer Payment Summary (EPS) ==
−
Platinum sends these automatically when you close off a payroll period. The confirmation message has an added button {{Button|Test}} which can be used to send a "test-in-live" Full Payment Submission (FPS) without committing the details to the HMRC. Obviously if you do send a "test-in-live" submission, you must still close the period to send the "real" submission.
+
This is the method by which you must inform HMRC about any statutory payments that you have made and/or are recovering.
  
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{{Tip|title=Tip|text=This follows the same process as the Test/Live drop-down in the previous End of Year submissions.}}
+
It must be submitted by the 19th of the following Tax Month.
  
−
==== Employer Alignment Submission (EAS) ====
+
It informs HMRC about amounts owing or to be reclaimed including SSP/SMP/SAP, [[How do I claim employment allowance?|Employment Allowance]] and [[Apprenticeship levy|Employment Levy]].
−
This is a special version of the Full Payment Submission which is only required the first time you file under RTI and under certain circumstances. See [http://www.hmrc.gov.uk/payerti/reporting/payroll-alignment.htm#5 here] for more details. Platinum will send the necessary information automatically on the first occasion when you close off the first period under RTI. In addition to the employees being paid, it includes all other live employees (i.e. with different payment frequencies) and includes details and year-to-date values (obviously all zeroes if the employer is starting RTI at the beginning of the year, like nearly all are).  
 
  
−
It is important that the employee database is clean - e.g. no "test" employees in payment frequencies which are never run - as these will be included. All such employees, if any, must be put {{DataValue|On Hold}} to exclude them. It is important that the employer updates the tax codes for ALL employees before sending the first FPS or an EAS.
+
Go to {{Menu|{{PR}}|Payroll Procedures/Reports|Monthly Payroll Routines|Employer Payment Summary|Submit a ''2020/2021'' EPS}}.
 +
* Ensure you select the settings relevant to your business for Employment Allowance and De minimis state end.
 +
* Click {{Button|Next}}.
 +
* View the figures on screen so you are aware of any additional amounts you owe or are owed.
 +
* Click {{Button|Next}}.
 +
* Check the summary screen which shows totals for the Tax Year to date.
 +
* Click {{Button|Submit}}.
 +
* When the submission has been successful, you may click {{Button|Print}} to print the summary then {{Button|Close}}.
  
−
{{Information|title=IMPORTANT INFORMATION|text= Platinum will not operate RTI, and HMRC will not accept submissions for RTI, until 6th April 2013. Employers can set up their payroll and print payslips and reports but it is important that you do not close off the first period until 6th April 2013 or later. For the HMRC guidance about this, see [http://www.hmrc.gov.uk/payerti/reporting/payroll-alignment.htm HERE].}}
+
If you experience any difficulties submitting the EPS, please see [Troubleshooting Payroll RTI Submission Errors this article] for advice or {{SupportContact}} for assistance.
  
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Once all this is done this closes the period and moves you into the next one.
+
== Posting the Wages Journal ==
 +
{{Information|text=At this point if you use the Platinum Accounts Module ({{SL}}, {{PL}}, {{NL}}), you will need to post a journal in the {{NL}} to account for your wages. See [[How do I post the wages journal?|here]] for how to do this.}}
  
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{{Information|title=Information|text=At this point if you use the Platinum Accounts Module ({{SL}}, {{PL}}, {{NL}}) you will need to post a journal in the {{NL}} to account for your wages. See the [[How do I Close a Payroll Period?#See also|See Also]] section below for how to do this.}}
+
{{Tip|text=If your system does not include Platinum Accounts but you are interested in getting it please don't hesitate to {{SalesContact}}.}}
  
−
{{Tip|title=Tip|text=If your system does not include Platinum Accounts but you are interested in getting it please don't hesitate to {{SalesContact}}.}}
+
== Historic Notes ==
 +
=== Additions to Period End Procedure for RTI Submissions ===
 +
As of '''April 6th 2013''' (after your year end) with the addition of '''RTI (Realtime) Payroll Submissions''', there are some extra procedures that will need to be carried out. These are detailed below. Two of them, the EAS and the FPS, will be done automatically by your Platinum Software as part of the normal period end procedure; the EPS must be done manually once a month when necessary.
  
−
==== Employer Payment Summary (EPS) ====
+
The instructions for submitting the FPS and EPS are in the article above.
−
There is a new option in {{Menu|{{PR}}|Payroll Procedures/Reports|Monthly Procedures/Reports|Internet Filing of Returns|Submit Employer Payment Summary}}. This is the method by which you inform HMRC about any statutory payments that you have made and/or are recovering and should be used '''AT THE END OF EVERY CALENDAR MONTH''' for which you need to inform HMRC about any amounts of SSP/SMP/SAP/etc.  
 
  
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{{Note|title=IMPORTANT NOTES FOR THE LAST PAYROLL PERIOD OF 2014|text=For the final month of the year you should tick the {{DataPrompt|Final submission for the year}} box, which adds the Checklist and Declaration pages from the old End of Year submission screen and replaces that whole process.}}
+
==== Employer Alignment Submission (EAS) ====
 +
This is a special version of the Full Payment Submission which is only required the first time you file under RTI and under certain circumstances. See [http://www.hmrc.gov.uk/payerti/reporting/payroll-alignment.htm#5 here] for more details. Platinum will send the necessary information automatically on the first occasion when you close off the first period under RTI. In addition to the employees being paid, it includes all other live employees (i.e. with different payment frequencies) and includes details and year-to-date values (obviously all zeroes if the employer is starting RTI at the beginning of the year).
  
−
{{Tip|title=Tip No 1|text=This submission should be done after the current payroll period is closed, i.e. after the 2 submissions above (FPS and EAS).}}
+
It is important that the employee database is clean - e.g. no "test" employees in payment frequencies which are never run - as these will be included. All such employees, if any, must be put {{DataValue|On Hold}} to exclude them. It is important that the employer updates the tax codes for ALL employees before sending the first FPS or an EAS.
  
−
{{Tip|title=Tip No 2|text=There is no separate End of Year submission for next year ending 5th April 2014. For more detailed year end help and help with your last Payroll period prior to the current year end (5th April 2013), see [[Payroll End of Year|HERE]].}}
+
Carrying out these processes closes the period and moves you into the next one.
  
−
== See Also ==
+
== See also ==
−
* [[Getting Started - Payroll]]
+
* [[How do I run a payroll period?]]
−
* [[Troubleshooting Payroll RTI Submission Errors]]
+
* [[How do I run reports at the end of a payroll period?]]
−
* [[How do I Post the Wages Journal?]]
+
* [[Troubleshooting payroll RTI submission errors]]
−
* [[Payroll End of Year]]
+
* [[How do I post the wages journal?]]
−
* [[How do I Run a Payroll Period?]]
+
* [[How do I journal a Covid19 grant?]]
−
* [[How do I Run Reports at the End of a Payroll Period?]]
 
−
* [[How do I Delete a Payroll Period?]]
 
−
* [[How do I Add a New Employee to the Payroll?]]
 
−
* [[Entering P45 Details/New Starters]]
 
−
* [[How do I Create a Department?]]
 
−
* [[How do I change a tax code?]]
 
−
* [[How do I Change an NI Number?]]
 
−
* [[How do I Set Up Payroll Adjustments?]]
 
−
* [[How do I Set up Payroll Attachments?]]
 
−
* [[Where can I Store Employee Bank Information?]]
 
−
* [[Where can I Store my Company Bank Details?]]
 
−
* [[Dealing with Employee Holidays in Payroll]]
 
−
* [[How do I Enter Sick Pay?]]
 
−
* [[How do I Assign Payroll Attachments to an Employee?]]
 
−
* [[How do I Deal with Dividends in Payroll?]]
 
  
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{{FAQ}}{{KB_Tags|Close, Closing, Payroll, Period}}{{KB_PR}}
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{{KB_Tags|close, closing, payroll, period, fps, eps, payslips, payroll analysis, end of period, e.p.s., f.p.s., employment allowance}}
 +
{{FAQ}}{{How}}{{KB_PR}}

Latest revision as of 13:56, 8 July 2024

Summary

The following article explains how to close off a payroll period.

More Information

This procedure must be followed when you have completed a period and you are ready to submit your FPS to HMRC.

Please ensure you have printed all the necessary reports and printed payslips before proceeding.

Pre-Period Closedown Checklist

  • Check that all Payroll amounts for each employee are accurate and correct, including any Sick Pay, Holiday Pay, Adoption Pay, Maternity Pay and Paternity Pay.
  • Check that you have marked any employees as leavers if applicable.
  • Check that you have printed all the reports that you want for this period, i.e. Payroll Analysis, Pension Contributions, Payslips etc.

Go into " Payroll Run Payroll Period".

  • Select the frequency to close then click [OK].
  • If you have not already done so print the required reports.
  • If you are outputting a file containing Pension data, make sure you have done so before closing the period.

Submitting the Full Payment Submission (FPS)

When you are ready to close the period and submit your FPS :

  • Click [Close] or press <F2>.
  • Confirm you wish to proceed with closing the period and submitting your FPS to HMRC.
  • Click [Yes] to proceed.

Your payroll period will be moved on to the next period and your FPS submitted electronically to HMRC.

  • When the submission has been successful, you may click [Print] to print the summary then [Close].
  • If any employees left during this period you will be prompted to print their P45's.
    • At "Print from P45" select the correct option from the dropdown menu i.e. If you have ordered P45 stationery from HMRC choose the relevant 'on pre-printed form' option else choose 'on plain paper'.
    • Click [Ok] once you are happy it has printed successfully.
    • Repeat for any additional leavers in the period.

If you experience any difficulties submitting the FPS, please see this article for advice or Contact your Platinum dealer or our support team on 0116 230 1500 or by using our website support contact page for assistance.

At the end of each Tax Month don't forget to submit your [EPS]. See steps below.

Submitting the Employer Payment Summary (EPS)

This is the method by which you must inform HMRC about any statutory payments that you have made and/or are recovering.

It must be submitted by the 19th of the following Tax Month.

It informs HMRC about amounts owing or to be reclaimed including SSP/SMP/SAP, Employment Allowance and Employment Levy.

Go to " Payroll Payroll Procedures/Reports Monthly Payroll Routines Employer Payment Summary Submit a 2020/2021 EPS".

  • Ensure you select the settings relevant to your business for Employment Allowance and De minimis state end.
  • Click [Next].
  • View the figures on screen so you are aware of any additional amounts you owe or are owed.
  • Click [Next].
  • Check the summary screen which shows totals for the Tax Year to date.
  • Click [Submit].
  • When the submission has been successful, you may click [Print] to print the summary then [Close].

If you experience any difficulties submitting the EPS, please see [Troubleshooting Payroll RTI Submission Errors this article] for advice or Contact your Platinum dealer or our support team on 0116 230 1500 or by using our website support contact page for assistance.

Posting the Wages Journal

At this point if you use the Platinum Accounts Module (Sales Ledger, Purchase Ledger, Nominal Ledger), you will need to post a journal in the Nominal Ledger to account for your wages. See here for how to do this.
If your system does not include Platinum Accounts but you are interested in getting it please don't hesitate to Contact your Platinum dealer or our sales team on 0116 230 1500 or by using our website sales contact page.

Historic Notes

Additions to Period End Procedure for RTI Submissions

As of April 6th 2013 (after your year end) with the addition of RTI (Realtime) Payroll Submissions, there are some extra procedures that will need to be carried out. These are detailed below. Two of them, the EAS and the FPS, will be done automatically by your Platinum Software as part of the normal period end procedure; the EPS must be done manually once a month when necessary.

The instructions for submitting the FPS and EPS are in the article above.

Employer Alignment Submission (EAS)

This is a special version of the Full Payment Submission which is only required the first time you file under RTI and under certain circumstances. See here for more details. Platinum will send the necessary information automatically on the first occasion when you close off the first period under RTI. In addition to the employees being paid, it includes all other live employees (i.e. with different payment frequencies) and includes details and year-to-date values (obviously all zeroes if the employer is starting RTI at the beginning of the year).

It is important that the employee database is clean - e.g. no "test" employees in payment frequencies which are never run - as these will be included. All such employees, if any, must be put 'On Hold' to exclude them. It is important that the employer updates the tax codes for ALL employees before sending the first FPS or an EAS.

Carrying out these processes closes the period and moves you into the next one.

See also


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Keywords AND Misspellings
close, closing, payroll, period, fps, eps, payslips, payroll analysis, end of period, e.p.s., f.p.s., employment allowance
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