KB Category: Sage Payroll (Micropay)

Payroll Year End 2021

Payroll Year End 2021: 
Another Year over in the world of Payroll, and with the continuation of the EWSS Scheme, we are still seeing signs of the pandemic in the shadows. Nothing will quite top the turbulence of 2020, and so 2021 waters seemed a little calmer thankfully. As payroll operators and support teams we have still been playing an important link between the government and employees, bringing us to our third Payroll Year End in the payroll modernisation era. Once again we have put together this PYE article, as a one stop hub to get you through your Payroll Year End. Everything you need to know is here!

The information below will refresh your memory with some important tips, handy downloads and links to other articles which may be relevant to your payroll.

Things to Remember:
Because you have been making submissions to Revenue every time you pay your employees, payroll year-end is like any other pay period with a few preparation tasks and additional steps. This should make it more smooth running. Below is an insight into what you can expect.

  • No ‘End of Year Return’
    Remember, there’s no longer an ‘end of year’ return. In tax years, prior to 2019 you had to run the P35, P60 and PRC1 tax year end reports. These are no longer required, and the reports no longer exist in the Sage Payroll software. The P35 has been replaced by the summation of your ongoing submissions to Revenue.
  • No Issuing Of P60s
    Remember, like last year, Revenue produce an ‘End of Year Statement’ for all employees, which includes details of all their pay and deductions for all employments in that tax year. Employees will be able to view and print this statement directly from the myAccount portal on the Revenue website. It might be a good idea to remind your employees about this, as some may have forgotten.
  • ‘Employment Detail Summary’ Report
    Like last year, the system contains a report which summarises the employees employment details. Its called the ‘Employment Detail Summary Report’. You are not required to hand this out to employees, but you can print or PDF it for your own reference. If an employee asks you for a summary of their employment, this will be the report to give them. It’s predecessor was the P60 document (Pre 2019).
  • Get PYE Ready by Reviewing Revenue Submissions
    You can check submissions you’ve made to Revenue, using the View Payroll Submission Log option. This shows you summaries of submissions, which you can filter by period date. You can also export a detailed report of each submission contained in the log for more information about what was submitted. To get ready for the year end, we recommend that you review these and compare them to those in your ROS account.

Useful Resources:
We have some useful resources listed below which can assist you to complete your year end:

  • Booklet & Checklist
    To help you along the way, here are links to our Payroll Year End Booklet 2021 and our Year End Checklist 2021. Feel free to download them and use them to guide you through your Year End Process.
  • Your Payroll Year End Software Update
    If you haven’t already been prompted to install your payroll year end update, then you can expect to be very shortly. The update includes the option to complete the 2021 tax year and get started in the 2022 tax year. You don’t need to wait until you receive the prompt, you can get ahead and download from here or from the the downloads section below. The update will update your 2021 payroll software to Version 24.4 It will also install the 2022 Payroll Software which is version 25.0

 

All Downloads:
2021 Year End Update: You can Download the 2021 Year End Update (V24.4 & V25.0 )by Clicking Here. (Size: 273 MB)
2021 Year End Booklet: You can Download the 2021 Year End Booklet by Clicking Here.
2021 Year End Checklist: You can Download the 2021 Year End Checklist by Clicking Here.


Helpful Information:
We have also put together some other articles which you find helpful as you work through the payroll year end.
Click on the links below to view each one.

“Retrieve RPNs” Button Non-Responsive

“Retrieve RPNs” Button Non-Responsive

 

When attempting to retrieve RPNs and the button is non-responsive, this may be due to corruption of the calendar.

To resolve this – please follow the steps below:

Replace the PAYCAL files

  1. Backup your payroll
  2. Locate the data via: Help > System Information > Data Directory
  3. Click on Data Directory & locate the file folder for the payroll
  4. Double-click on the file folder & scroll down to the following files: PAYCAL.CDX & PAYCAL.DBF
  5. Select both files, then cut & paste them into a folder on your desktop named “Paycal OLD
  6. Create a blank new payroll in Sage Payroll by logging in as ADMIN & navigate to: Company > Company Setup > Add New Payroll > Create
  7. Once created, click on Data Directory & locate the file folder for the new blank payroll
  8. Double-click on the file folder & scroll down to the following files: PAYCAL.CDX & PAYCAL.DBF
  9. Select both files, right-click & copy
  10. Return to the Data Directory, locate the file folder for the original payroll & paste the new PAYCAL files there

Recreate the Calendar

  1. Log back into the original payroll
  2. Select: Company/Payroll > Calendar > New Calendar
  3. Enter the required dates & Save
  4. Retrieve RPNs as per normal

Download and install Sage Payroll v24.2

Download and install Sage Payroll v24.2

 

Sage Payroll v24.2 is available to download and install. This article details how to download and install this version.

 

Before you install

Check the version you’re currently using and make a note of where the software is installed.

  1. Login to your computer as system administrator.
  2. Open Sage Payroll 2021, click Help then click System Information.
  3. Confirm your version number is v24.0 or above.
  4. Make a note of the Program Directory and Data Directory.
  5. Back up your data.

If your data is held on this computer, continue to the next section. If your data is held on a network the steps are different.

 

Download and install

  1. Close Sage Payroll 2021 and all other software.
  2. Click the link: Download Sage Payroll v24.2
  3. Double-click the file that downloads – Sage_Payroll_v24.2.exe
  4. Select the I accept the terms of the licence check box, then click Next.
  5. Select This Computer, then click Next.
  6. Select Custom, then click Next.
  7. Check the program and data directories are the same as you noted earlier.  If not, click Browse, enter the correct directories, then click OK.
  8. Click Next, then select the Add shortcuts to my desktop check box.
  9. Click Install, then click Finish.

 

What’s new in Sage Payroll 24.2?

 

  • Click F1 at any time in your software to bring up our world class knowledgebase articles.  Find out more >
  • A pay date field has been added to the Timesheet entry screen when processing leavers.  Find out more >
  • New supplementary CSO types. Find out more >
  • The employer liability report now includes an optional Employer and Employee PRSI breakdowns.  Find out more >

Nominal Integration Report from Sage Payroll

Nominal Integration Report from Sage Payroll

 

You can use the nominal option to produce a nominal journal for integration with your accounts software. However before you start using this option, you must enter your nominal settings in Sage Payroll so it knows where to post your journals to.

Don’t add commas to descriptions, translations or nominal codes, as these will be interpreted as columns in the CSV file and place data in the incorrect columns. This may result in a failed import into your accounting package.

1.  On the menu bar, Click Nominal and Set-up.

 

 

2. Specify the format of the nominal codes you want to use in Sage Payroll for analysis of payroll costs.

This field must have an entry, and can be up to 16 characters in length.  When you’re defining a format, there are three letters with special meaning:

  • d – department code
  • c – cost centre code
  • a – item code

All other characters are understood by Sage Payroll, in the context of nominal code formats, to be constants.

For example, if you specify the format definition ddddccccaaaa, Sage Payroll expects codes whose first four characters identify the department, the next four characters identify the cost centre and the final four characters identify the item code.

In this example for Sage 50/Instant Accounts, this field must read: aaaaddddd.

 

 

3. Complete the following information with the relevant nominal Codes.  In this case we have taken the default nominal codes from Sage 50 Accounts:
  • Nominal Code Format: aaaadddd
  • Employee PRSI: 2210 [PAYE/PRSI/USC]
  • Employer PRSI +:  7006 [ER PRSI]
  • Employer PRSI -: 2210 [PAYE/PRSI/USC]
  • ASC: 2240 [ASC]
  • PAYE: 2210 [PAYE/PRSI/USC]
  • USC: 2210 [PAYE/PRSI/USC]
  • Bank Account: 2220 [WAGES CONTROL ACCOUNT – NET WAGES]
  • Rounding Account: Round
  • Suspense Account:  9998

 

 

 

4. The Journal Format is used to specify the print column positions in the nominal report or file output for the following:
  • Code – 5
  • Description – 20
  • Debit value – 55
  • Credit value – 65
  • Total – 85

 

Example of the Journal when its printed

 

Click OK when this is complete.

 

5.  Select Nominal – Payments

Set your Payments to 7000 for Gross pay as follows:

 

 

6.  Select Nominal – Deductions

set you nominals for Deductions as follows:

 

 

7. Select Nominal – Departments

In my accounts package my department codes are 1 – 2 – 3 etc so in payroll I have entered in these codes as 001,002 and 003 as follows:

 

 

8. Select Nominal – Translations

Set up translations for the balance sheet items as follows:

 

 

This table is used to set up alternative nominal codes.  This is a useful tool if you want to make the nominal coding structure less rigid.  You can use it to translate the codes defined in Payroll to alternative codes that will be used when you export the report or file to import.

So in this case I want my balance sheet codes to be used and not look at the department.  If I don’t enter these in here it will split them out by department being:

  • 2210001
  • 2210002
  • 2210003 and so on

Instead we enter in

  • 2210 – PAYE/PRSI/USC
  • 2220 – Wages Control Account
  • 2230 –  Pension
  • 2240 – ASC

All the profit and loss nominal will now be split by department.

 

8. Select Nominal – Descriptions

 

By default, the nominal report show’s the nominal code, enclosed by square brackets in the Descriptions field. An entry in the nominal report with nominal code 2200 shows [2200] in the Description field.  You use the Descriptions feature to replace the nominal codes with text to define what the entry refers to. This can be repeated for all codes created by the nominal process.

You can translate the nominal codes into English as follows:

 

 

9. Final Payroll Journal Report

You will now get the following report when you preview it within the payroll.

 

 

 

If you require a more detailed report or you would like to import the file into your accounts package please contact us for a quote to set this up.

 

Sage Payroll V24.1

Sage Payroll V24.1

Sage Payroll V24.1 – has introduced plain paper layouts.  Please contact us 051-395900 if  you require to purchase the current MP011’s or equivalent.

 

Before you install

Check the version you’re currently using and make a note of where the software is installed.

  1. Open Sage Payroll, click Help then click System Information.
  2. Make a note of the Program Directory and Data Directory.
  3. Check that all of your payrolls have a status of End of Period (EOP) or Start of Period (SOP).
  4. Backup your data.
  5. Ensure you’re logged onto the computer as an administrator.

If your data is held on this computer, continue to the next section. If your data is held on a network the steps are different.

Download and install
  1. Close Sage Payroll and all other software.
  2. Click the link below: Sage Payroll v24.1 update
  3. Double-click the file that downloads – Sage_Payroll_v24.1.exe.
  4. Select the I accept the terms of the licence check box, then click Next.
  5. Select This Computer, then click Next.
  6. Select Custom, then click Next.
    1. Check the program and data directories are the same as you noted earlier.  If not, click Browse, enter the correct directories, then click OK.
    2. Click Next, then select the Add shortcuts to my desktop check box.
    3. Click Install, then click Finish.

 

FAQs – Planning Dates Over Payroll Year End 2021

Here at Pimbrook, we encounter many ‘Date’ queries at Year End time. We have assembled this article to try to take the mystery out of dates at Year End.
See below a list of questions that we frequently get asked:
  1. What is the ‘Pay Date Rule’?
  2. What do I need to consider when planning my pay periods at Year End?
  3. How do I know if I have a Week 53?
  4. What if the 25th Dec or 1st of Jan (Bank Holidays) are my usual Pay Days this year?
  5. What do I need to consider when planning my New Year Calendar?
  6. Is it ok to pay my 2021 Period 1, as the final period in my 2020 Payroll System instead?

 


 

1. What is the ‘Pay Date Rule’?
  • The pay date rule means that if the planned pay date for a period is a 2020 date, then the period belongs in the 2020 payroll and if the planned pay date is a 2021 date, then the period belongs in the 2021 payroll.
  • All scenarios are governed by the pay date rule.

 

2. What do I need to consider when planning my pay periods at Year End?
  • For non-monthly frequency payrolls (eg: weekly, 2 weekly etc..), payments to employees should be on the same day every week – including over year end.
  • Holiday pay for days taken in 2021 need to be paid using the 2021 payroll. Holiday pay for days taken in 2022 need to be paid using the 2022 payroll.
  • If you are planning to run the final periods together [eg: Period 51, 52] – the pay date rule still applies.
  • If you have a Period 53 – it must be run separately, and it must have a paydate of 31/12/2021 – Revenue Requirement.
  • If you have a Period 53 – Examine the planned pay date for it in your payroll calendar. (Click ‘Company\Payroll’ then click ‘Calendar’ to view it.) If the planned pay date falls in 2021, then it should be included in the 2021 system. The pay date rule still applies.]
  • If the planned pay date of the latter period, as seen in your payroll calendar screen, falls in 2021, then it should be included in the 2021 This scenario would then require two separate bank payments, one for payment of the 2020 final period(s) and one for payment of the 2021 period. [In this scenario, you can set the bank file execution date to be the same date if required, but you should contact your bank before doing so, as some banks may interpret two files with the same date as a mistake. Alternatively, you can set different execution dates for the two bank files.]
  • All of the above is irrespective of when the work was carried out.

 


See below Examples of Acceptable Year End 2020/Year Start 2021 Dates:
There were 52 Mondays in 2020, 52 Tuesdays in 2020, 53 Wednesdays in 2020, 53 Thursdays in 2020, and 52 Fridays in 2020. The most popular pay dates would generally be Wed, Thurs & Friday. See examples of correct pay dates for those days in the image below. Your payroll may differ of course, but try to stick to the date rules, and plan correctly for 2021.

 

3. How do I know if I have a Week 53?

Because the number of days in the tax year doesn’t divide into a whole number of tax weeks, any remaining days are known as week 53.
  • This year (2020), you could only possibly have a week 53 if your Pay Date is normally on a Wednesday or a Thursday, and your final 2020 pay date naturally falls on Wednesday 30th of December or Thursday 31st of December.
  • If your first pay date of the year was Wednesday the 2nd or Thrusday 3rd of Jan, then you certainly have a Week 53.
  • Remember here that Revenue want employers to pay on the same day of the week, all year round. This includes over year end.

For more details on week 53 click here. 

CAUTION: Whilst many employees may already be on week 1 tax status where your company availed of the Temporary Wage Subsidy Scheme, you must process the extra pay period separately to your penultimate pay period.

 

4. What if the 25th Dec or 1st of Jan (Bank Holidays) are my usual Pay Days this year?
  • Where your Pay Date is usually a Friday, you will need to pay wages on Friday 25th Dec and Friday 1st Jan 2021.
    For the 1st Jan Pay Date, Revenue want employers to process pay for that Pay Date in the 2021 Payroll System, and submit it to the 2021 Tax Year.
    You should not pay this as your final pay in the 2020 system, as the Pay Date is a 2021 date and falls into the 2021 Tax Year.
    The software will not allow you to set a period where the Period Date is in 2020, and the Pay Date is in 2021 (See image Below)
  • If your planned Pay Dates fall on Friday 25th Dec 2020 and Friday 1st Jan 2021, and your employees are due to be paid by Bank Transfer on those days, Revenue still regard the Pay Dates to be Friday 25th Dec 2020 and Friday 1st Jan 2021, even if you make the funds available to the employee’s bank account on the respective previous days (24/12/2020 and 31/12/2020).

If this scenario applies to your payroll, you should:

  • Process this payment as normal but make sure its in the correct Tax Year.
  • Make sure to set the ‘Pay Dates’ on each respective period to be Friday 25/12/2020 or Friday 01/01/2021 as you usually would.
  • Transfer the funds to your employees’ bank accounts on the respective previous days if you wish (24/12/2020 and 31/12/2020).

Your submission to Revenue will show the Pay Dates respectively as 25/12/2020 and 01/01/2021. 

 

5. What do I need to consider when planning my New Year Calendar?
  • The Period Date & Pay Date fields are key fields in calendar process.
  • The Period Date field has always been in the system and when setting a new calendar, it is driven by the Period Date field.
  • Since the Period Date is the systems’ driver when setting up a new Calendar, it’s very important to enter an appropriate ‘Period Date’ for Period 1 of the new tax year, as this date determines all subsequent periods of the calendar.
  • The Pay Date field was a new addition in 2019, to accommodate payroll modernisation & submissions.
  • The Pay Date refers to ‘the date the employees receive their net pay’. Revenue use this date to determine when you paid your employees.
    Revenue do not use the ‘Period Date’ to determine this, as is sometimes assumed.
    Revenue do not receive the Period Date in submissions, they only receive the Pay Date.
  • With regard to the Pay Date: if you’re on a weekly payroll, your first Pay Date should fall between 1 – 7 January. For a fortnightly payroll, it should fall between 1 – 14 January.

We recommend to keep your Period Date the same as your Pay Date, unless you have a specific reason not to. Make sure you have 52/53 planned periods in your new calendar, and that all the Pay Dates are dated in the new year (ie: 2021).

 

 

6. Is it ok to pay my 2021 Period 1, as the final period in my 2020 Payroll System instead?
  • The short answer is No. Since payroll modernisation came in at the start of 2019, Revenue have been very clear that the do not want you to do this.
    The software will not allow you to set a period where the Period Date is in 2020, and the Pay Date is in 2021.
  • Revenue want employers to pay on the same day every period, so changing the pay-day is not an option.

 

Processing Covid-19 TWSS Reconciliation in Sage Payroll (Sept/Oct 2020)

If you remember back to the TWSS it was rolled out in two phases: The Transitional Phase (26th of March – 3rd of May), and the Operational Phase (4th of May – 31st August).

During the Transitional Phase the employer was expected to calculate the Average Revenue Net Weekly Pay and pay the correct subsidy to the employee via payroll. During this period Revenue refunded employers the maximum subsidy amount of €410 per qualifying payslip, per qualifying employee, per week (or in multiples of this for other pay frequencies). While payroll systems recorded the employees specific TWSS payment amount against a specific payment name, those systems were not yet reporting the exact subsidy amounts back to Revenue via submissions. Things were fast paced back then.

During the Operational Phase, this worked a little differently: Revenue provided employers with the relevant employee information (CSV download) to ensure the correct subsidy amount was paid to each employee, and refunded to the employer on that basis, Payroll systems’ were updated to help decide the exact amount to give to an employee, but also to report back those amounts officially as subsidy amounts, so refunds to employers were from that point more exact.

To tally up the whole thing, Revenue now require employers to carry out a ‘TWSS Reconciliation’. This will be done with the aid of the ‘TWSS Reconciliation’ Feature which came in in Sage Payroll Version 23.3. When you run the feature, it will update the employees ETP records with the actual TWSS values paid to them via nominated Pay Elements in your system.  The feature will also create a CSV file, which will list the TWSS payments actually paid to employees during that time. You must then upload the resulting CSV file to the ROS Website to complete your TWSS Reconciliation.


TWSS Reconciliation Upload Window & Penalties:

TWSS Reconciliations must be carried out and uploaded to the ROS website between 21st Sept 2020 – 31st Oct 2020. If you do not provide this data about payments to your employees, Revenue will recoup from you the total temporary wage subsidy paid and related interest charges.


To Process the TWSS Reconciliation in Sage Payroll:
Before you start the TWSS Reconciliation process:

  • Ensure your software is at least on version 23.3 of Sage Payroll
  • Check the payroll status is Start of Period (SOP) –  If its not, the feature will give an error message and will not run.
  • Check the Employer registration number is entered in Company Details.
  • Ensure a recent payroll backup has been taken to a safe location.

To start the process – at the top of the main screen click on Miscellaneous\Covid-19\TWSS Reconciliation. This will present the TWSS Reconciliation Wizard.
There are two options depending on what stage of the process you are reconciling your values with ROS:

  1. Update the employee records with TWSS amounts paid during transitional phase, and create a new CSV file (for upload to ROS)
    If you use this option in Sage Payroll, the Covid-19 field in the ETP records update, for each relevant employee with the values processed in each period, then creates a CSV file ready for upload to your ROS account.
  2. Create CSV file only, as employee records were manually changed or updated previously by you.
    If you use this option in Sage Payroll, it creates a CSV file ready for upload to your ROS account. Use this option if you have previously manually updated the Covid-19 field in the ETP tab for each relevant employee, or completed the Update the employee records and create a new CSV file option already, but now need another copy of the CSV file.

 

Select Date range used for TWSS subsidy payments:
If you choose the first option, you will be asked to choose a Date Range. The Revenue Covid-19 support schemes (Covid Refund Scheme and TWSS) came into effect from March 15, meaning a date previous to March 15 should not be selected within the reconciliation wizard, but you can do so if required.

 


Select payments used to process subsidy:
To ensure the correct values are used to update each employee’s ETP record, select the appropriate payments in the list – at least one payment must be selected to proceed in the wizard.

 

View Employees to Update:
The wizard will present a list of the relevant employees whose ETP records it is about to update:

 

Save Reconciliation CSV File:
The next screen will prompt you to save the file to a chosen location. Make a note of the location as you will need it later when you are uploading the file to ROS.

 


Update Employees & Create CSV File:

Once you click Save, the employee records are updated and the CSV file is created. It is ready for upload to the ROS Website.

 

Uploading the TWSS Reconciliation CSV File to ROS:
Page 3 of Revenues publication “Instruction on Uploading and Reviewing Subsidy Paid Data via CSV” contains instructions on how to upload the TWSS Reconciliation CSV file to the ROS website.
You can link to the publication here.

 

More information on the TWSS Reconciliation can also be found at the following links:

  • Sage Full Article: “Covid-19 TWSS Reconciliation” –> Click Here
  • Dealing with file errors –> Click Here.
  • Revenue Website TWSS Reconciliation  Info –> Click Here

Sage Payroll Software Update – Version 23.4

Sage Payroll update version 23.4 is now available.

**Important Note: If you are using the CWPS Feature in Sage Payroll, you should refrain from installing this update until on or before Monday 28th September! This update contains the new rates which pertain to the new CWPS year (CWPS New year starts on 1st October. Monday 28th Sept is the start of Week 1 of the new CWPS year.)

What’s New:

  1. New CWPS rates, (come into effect on the 28th of Sept). Link to full article here –> CWPS New Calendar
  2. Timesheet warnings with regard to EWSS, when the Gross Pay/Insurance weeks are outside of the allowed range. Link to full details here –> EWSS TImesheet Warnings.
  3. Timesheet EWSS information flag, to indicate when an EE is marked for EWSS.

 

Installing the Update:
You may be prompted to install the update from your Sage Payroll software, if not you can download and install it from the Pimbrook download area. The procedure for this is the same as with any prior payroll update – see notes below:

  1. Ensure you have the correct version of software for the update. To see the version, open Sage Payroll 2020, click Help then click System Information. The current version should be V23.3
  2. In the System Information Screen, make a note of the Program Directory and Data Directory.
  3. Check that all of your payrolls have a status of End of Period (EOP) or Start of Period (SOP).
  4. Back up your payroll data.
  5. Close Sage Payroll 2020 and all other software.
  6. Log in to the computer as administrator (or as a user with administrator rights) and turn off any anti-virus and “User Account Control”.
  7. Download the update from the Pimbrook Download area by clicking here.
  8. Execute the downloaded file and follow the install steps, ensure the program and data directories are the same as noted in 2 above, for more information see our article on Sage Payroll Update Instructions and Preparation.

 

Important Note:

Please ensure that you install the update correctly, particularly if you are using a network installation and the data location is not on the same computer. If you find that some employees are on PRSI class A1 regardless of their PRSI eligible pay then you probably have not applied the update to your data location (i.e. the server). If this occurs please reinstall the update correctly to all required locations (i.e. client and server computers).

Build and maintained by Modus.