2. Prepare for payroll year end

This is stage two of four to completing your payroll year end. See all four stages here >

Before you process year end, you must complete the two simple steps below first.

TIP: Take a look at our handy checklist to help you along the way. Prepare for year end - checklist >

1. Check you're using the correct version

If you haven't updated your software yet, install the year end update, v30.01.283.

To check your version number:

1. Log in to Sage 50 Payroll as normal.
2. Click Help then click About.
3. Under Program Details check the Version Number.

If you need to update, you can find out how in our download and install the Sage 50 Payroll year end update guide.

2. Update your NI rates

The Spring Budget 2024 announcement included a reduction of the main rate of employee National Insurance for the 2024/25 tax year.

You must update your NI rates in Sage 50 Payroll v30.00, before you process a 2024/25 payroll. To find out how, visit our how to apply the Spring Budget 2024 NI changes guide.

 TIP: Sage 50 Payroll v30.01 includes the new NI rates. 

3. Check if you have a week 53

If you pay your employees monthly, you don't have a week 53. Also, if you don't pay your employees on a Thursday or Friday, you won't have a week 53 this year.

As 2024 is a leap year, week 53 falls on two days this year:

• Thursday 4 April
• Friday 5 April

To confirm whether you have an extra pay period this year, view our guide on how to identify and process week 53.

4. Process your final pay period

There are several key tasks you must carry out in order to process your final payroll and ensure all of your year end values are correct:

• Process, assess and update your final pay period for all pay frequencies in the 2023/24 tax year
• Process any leavers who left on or before 5 April 2024. Process a leaver and produce their P45 >
• Submit the full payment submission (FPS) as usual, on or before the date your employees receive their pay
  TIP: This isn't your final submission for the tax year. You make the final submission when you process your year end.
• Submit your employer payment summary (EPS) for month 12, if required. When to submit an employer payment summary (EPS) >

Director's NI

In the last pay run of the tax year, Sage 50 Payroll automatically calculates Pro rata basis director's National Insurance cumulatively. 

This is in line with HMRC requirements. You don't need to do anything differently when you process a director's last payment of the tax year.

If you'd like to find out more about this and view some example calculations, visit our understanding director's National Insurance (NI) at payroll year end guide.

Watch the video

If you'd like to watch a demo covering how to prepare for payroll year end, click here >

Next steps

You've completed your final pay periods of the 2023/24 tax year, you can now process your payroll year end >