Once you've generated the pre year end data check report, as part of your payroll year end process, you need to reconcile it with the employee cumulatives (all) (PAY084B) report and the final control report (PAY355CT).
You need to reconcile it for each pay group in the company on the financial control report:
Current taxable plus previous P45 taxable should equal taxable pay less pension on the final control report.
📌Note: The taxable pay figures on the pre year end data check report are net of pension. This is because year end returns such as P35s and P60s are always net of pension.
Current PAYE plus previous P45 taxable should equal PAYE on the final control report.
📌Note: The taxable pay and PAYE figures are split into current and previous employment on the pre year end data check report. In contrast, the employee cumulative (all) report and final control report combine the two figures.
NIC EE all employment should equal the NI employee on the final control report.
NIC ER all employment should equal the NI employer on the final control report.
🤓Tip: You can check the pre year end data check report at any point during the year. You can do this every few months as a health check if you want to.
Example
Below is an example of how the final control report and employee cumulatives (all) reports equal the pre year end data check report:
Final control report and employee cumulatives (all) report | Total | Rre year end data check report | Total |
Taxable pay less pension | 125,504.28 | Current taxable plus previous P45 taxable | 125,504.28 |
PAYE | 20,437 | Current PAYE plus previous P45 taxable | 20,437 |
NI employee | 10,904.49 | NIC EE all employment | 10,904.49 |
NI employer | 13,530.52 | NIC ER all employment | 13,530.52 |
Reconcile the pre year end statutory pay report
Compare the other statutory all employments report to the equivalent figures on the detailed observation report for the relevant pay codes. You should have a copy of the detailed observation report from your last payroll run for each pay group.
Pre year end taxable pay vs post year end tax taxable pay
Use the PAY, PAYE, NIC report to list all employees who have net taxable pay for this tax year, with overall totals for current PAYE, NI, and taxable pay.
Taxable pay on post year end reports, including P60s, is always a whole number. You must make allowances for this when reconciling total pay figures on pre year end and post year end reports.
If needed, you can troubleshoot common reasons why the reports do not match.
Next, run the year end cleardown.