Payroll year end 2021

At the end of each calendar year, you'll need to process your year end values to produce an EDS (Employment Detail Summary) for your employees.

We're updating SBC (Sage Business Cloud) Payroll at the end of November with all the legislation changes and calendars for the new tax year. We'll let you know when this is available, so there's no need to check back.
You won't be able to process in the new tax year before the update.

To complete one tax year and begin working on the new tax year you will need to:

  • Process and submit your final pay period in the current tax year.

  • Set up the next tax year.

  • Process and submit your first period in the new tax year.

Part 1: Prepare for year end

Check if you have an extra pay run (week 53)

If you process weekly, two-weekly or four-weekly payroll, you may have a week 53.

If you have an extra pay run, this is your final pay run of the year and should be processed as normal.
To find more detail about the week 53 criteria you can access the Extra pay run article (opens in a new tab)

Process any leavers

Before you process your final pay run, you need to enter the last working day for any employees who have left your employment during this period.
To find more detail about this process you can access our dealing with leavers article (opens in a new tab).

Process the final pay run of 2021 and any holiday pay

Before you create your year end returns, you must complete your final pay run of the 2021 tax year.
To find more detail about this process you can access the Pay Runs article (opens in a new tab).

If any of your employees are on holiday and this happens to span year end, process their holiday pay up until the end of the 2021 tax year, then process a new payment in week 1 of the new tax year to reflect the remaining holiday payments.

Part 2: Run the year end

Review your employees' pay

As part of the year end routine, you must review your employee pay to make sure the values and the information you submit to Revenue is correct.

To amend any pay values for your employees access the corrections process article (opens in a new tab).

For all of the steps to generate the employee pay statements access the Review your employee's pay article (opens in a new tab). These reports can be exported as a PDF file and provided to your employees.

Employees can compare the values on the employee pay statement against the EDS (Employment Detail Summary) issued by the Revenue on 16th January.

Employment Detail Summary

Revenue will produce an EDS for all employees, which includes details of the pay and deductions for all employments in that tax year.

Employees can view and print their EDS from the Revenue website.
To login to the revenue open the myAccount website (opens in a new tab).

Employees who are unable to use this service will need to contact Revenue to request a paper version.

Part 3: Starting the new tax year

In the next few weeks, your Payroll service will be ready for processing in the 2022 tax year.

Until then, if you complete your 2021 processing and try to move into your first pay run of 2022, the following message appears:

"You have reached the end of the current tax year. The payroll updates for the new tax year are currently unavailable, so you cannot process any pay runs for the new tax year. The new payroll updates should be available approximately 1 - 2 weeks prior to the start of the new tax year."

Before you begin processing for the new tax year

You must request new RPN’s (Revenue Payroll Notification) for all employees for the first payment in the new tax year.
RPN's provide the necessary information to deduct the correct tax, USC (Universal Social Charge) and LPT (Local Property Tax).

Retrieve and import the RPN’s on step 2 of the Pay run in SBC Payroll. If needed an updated RPN will be retrieved and applied for employees.

  • If no RPN’s are available, you must operate the emergency basis of income tax and USC.

  • If an RPN is not available for a new employee, the service attempts to generate a new RPN for any new employees with a PPSN (Personal Public Service Number) and an Employment ID.

  • If the RPN indicates that an employee should be set to PRSI (Pay Related Social Insurance) exempt, you must manually select a PRSI exemption reason from the Edit Tax Details that displays when you select the employee’s name at the top of Edit Pay.

You can access our Payroll year end webinar here:

Legislation changes for the 2022 tax year.

Increase in the Minimum Wage

The National Minimum Wage will be increased by 30c, bringing the hourly rate up to €10.50. This increase comes into effect on 1 January 2022.

If you have employees on the minimum hourly rate, make adjustments during your pay run or create new payments.
To find more information for setting up payments, access our create and manage payments guide (opens in a new tab).

For help processing a pay run, access our process a pay run guide (opens in a new tab).  

Budget announcement

To read more about the measures introduced to support owners of small and medium-sized businesses access our Budget 2022 information (opens in a new tab).