Year End Tips

Year End Tips

Year End Tips

Four Payroll Tips for Businesses when preparing to close off 2022 payrolls.

As the year ends, it is important to consider your payroll taking care that you close off your payroll in good order. Here are 5 payroll tips to consider as you close off your payroll and head into 2023!

Year end payroll tips

  1. Confirm and update your Employee records

Although employee information may be saved on file or on your payroll software, the records may have errors. It is important to ensure employee information such as Date of Births, Dates of Engagement, Positions, Departments, Contact information and NSSA Numbers etc.

  • Review your leave registers

Find out each employee’s used and remaining leave days. Depending on your company policy, you may also need to determine whether the leave days will be cashed out or carried forward to the next year. If your policy does not allow carrying forward of leave days to the next year, then you will need to consider planning for your employees to go on leave before the year ends. Leave days must be properly updated to avoid inconsistencies which can lead to frustrated employees and possibly overvalued leave.

  • Do your final payroll run for the year

Verify that employee wages and deductions are correct before finalizing your payroll. If there were any tax table changes during the year, ensure that your payroll has been updated accordingly.

  • Submitting tax reports

Once you have concluded your final payrun for the year-end, it’s now time to extract your payroll ITF16 for submission to your Tax Authority. This is an Income Tax Form which summarizes your income tax for the year and will be used to audit the accuracy of your tax calculations. Normally this extract is required by the 30th of January. Early submission is advised to avoid an inconveniences.

Written by Ashlene Moyo