Closing of FY 2020-21

What to Know While Processing Year-End Payroll

At the end of a busy financial year, HR managers have to contend with numerous tasks. One of the ins, ensuring that payroll processing is handled accurately and effectively. The payroll management process however, is far from easy. However, there are effective practices that managers can follow that can ensure that they stay on top of things at the end of the year.

Ensure that Employee Documents Are Up-To Date

A key payroll process includes the process of maintaining employee records as well as ensuring that their documents are safe. Employee details and records must be updated and verified. For instance, employee details such as positions, salary caps and government documents may need to be verified once again to ensure that they are up to date.

Ensure Payroll Taxes Are Documented and Paid 

Taxes that are deducted from an employee’s salary by an employer. They are a small percentage that is deducted from an employee’s salary. These are then put into programs that are used for the welfare of employees, among other initiatives. Ensuring that payroll taxes are properly recorded can go a long way in ensuring that organizations do not have to end up paying penalties for failing to comply with taxation laws.

Verify Wages and Salary Slabs for Employees 

Managers have to ensure that employee details regarding their place in an organization and their movement up the ladder must be updated for their records. Employees are taxed and paid wages according to their positions and their salary slabs. Ensuring these details are accounted for can ensure that the organization does not lose money, and employees are not taxed incorrectly.

Determine Deposit Schedule and Wage Rates 

Managers can ease the stress and burden of dealing with year-end payroll by taking the time to draw out a schedule for the next cycle. By drawing out an entire schedule for payroll-related processes, managers can rest easy, knowing that tasks require deadlines. This schedule could also include tasks such as depositing wages and salaries and paying taxes by certain dates.

Remind Employees to Claim Reimbursements Before the End of the Year

Employees in certain organizations are eligible or reimbursements for certain expenses. Some of the major kinds of expenses that employees can claim benefits on include medical expenses, housing rent, Etc.

Update Software

For any organization that relies heavily on payroll and HR software, it is recommended that the organization takes on the task of updating its software. Be it ERPs, HRIS or even payroll software; it is always recommended to stay up to date, some of the software could be updated with the latest compliance to ensure that the organization are at the risk of compliance failure.