Payroll Year End tasks

Review of employee pay on P11

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Hi everyone,

Just wondering if anyone has any advice on the below. I am just completing some payroll year end tasks on SAGE (cloud based payroll).

The system has produced me P11s for each employee that has been on the payroll within the last tax year. SAGE instructions are 'review employee pay'. 

How would you complete this check? 

Should I compare each weekly net pay paid to each employee and make sure this has come out of the bank? If required, how would you check if the correct PAYE and NIC has been deducted from each employee? 

Any advice is appreciated,

Thank you. 

 

 

 

Replies (4)

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By D V Fields
10th Apr 2024 15:01

You should carryout your normal payroll and balance sheet reconciliations as considered fit for purpose.

Unfortunately SAGE make suggestions that have or practical relevance. I used to have auditors who wanted the equivalent of a particular parameters report that SAGE provided but my payroll software provider did not. On examination it became clear that the “parameter” report was worthless.

It is your regular controls that will ensure you are happy with the figures.
Your balance sheet reconciliations will confirm payment and your employees are likely to quickly advise you otherwise.

By all means carryout sample checks of the PAYE and NI calculations. Essentially you need a spreadsheet, or similar, to mimic the calculations required. To a large extent but not to be wholly relied upon any payroll software providing erroneous payslip calculations isn’t going to last very long.

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Replying to D V Fields:
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By Polopols
10th Apr 2024 15:13

This is exactly why I was so confused about the whole situation - if I carry out the monthly payroll reconciliations as advised per our accountants, why would SAGE want me to do all of that work for the whole year again.
Thank you so much for your input, very helpful.

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Replying to Polopols:
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By D V Fields
10th Apr 2024 15:23

Remember to do your payroll (and all other balances sheet) reconciliations because you recognise the importance of them and how they give you confidence in the accounts - not because your accountant suggest. Then you'll know when to treat SAGE's advice with the disdain it invariably deserves. (-:

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Replying to Polopols:
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By FactChecker
10th Apr 2024 17:18

You don't say whether this is for your Employer or for a number of clients - or what typical size of payroll (number of employees), or indeed in what sector.
I only mention those points because I would expect any decent Payroll software (a) to perform calcs correctly at each pay period and (b) to do its own YE reconciliation (in terms of any anomalies between summed periods and YE totals).

Whereas, in the days when I ran loads of payrolls, the 'issues' more typically were due either to a late supply of input data (notification of starters or leavers, etc) or to a simply incorrect supply of input data (transposed number of hours or whatever).
Of course those are the kinds of errors (if any) that you want to spot each pay period - not at YE - and preferably in time to re-run before submitting the FPS.

In short, I'm with your accountants.
If being generous I'd say Sage are just covering their posteriors with unnecessary 'guidance' (or of course they could simply not know that posterior from an elbow)!

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