Year-end payroll is the process employers follow at the close of the financial year to reconcile employee pay records, ensure tax compliance, and issue the necessary reports and statements to employees and authorities.
It involves finalising all wages, bonuses, deductions, and contributions made during the year.
Accurate year-end payroll is critical for compliance, financial transparency, and employee trust.
The year-end payroll process generally includes:
Reconciliation: verifying payroll records against financial statements.
Tax withholding review: ensuring all income tax, social security, and other statutory deductions are accurate.
Employee statements: preparing year-end pay slips or tax forms (e.g. W-2 in the US, P60 in the UK).
Adjustments: correcting errors, missed payments, or unreported benefits.
Bonus payments: including annual incentives or performance-related bonuses.
Reporting to authorities: submitting final payroll and tax information to government agencies.
Compliance: ensures all tax and statutory reporting requirements are met.
Accuracy: identifies and corrects payroll discrepancies.
Employee trust: provides transparent wage and tax reporting to staff.
Financial planning: offers insights into labour costs for future budgeting.
Audit readiness: creates a complete record for internal and external audits.
Regular payroll: the routine process of paying employees weekly, bi-weekly, or monthly.
Year-end payroll: a specialised process at the close of the financial year that finalises all payroll data and tax reporting.
At Mauve Group, we help businesses manage year-end payroll across multiple jurisdictions.
Our global payroll solutions ensure compliance with local regulations, accurate reporting, and seamless integration with year-end tax requirements.
Whether operating in one country or across many, Mauve Group provides the expertise to close the year with confidence.
Payroll processing: the ongoing cycle of calculating and distributing employee wages.
Payroll compliance: adhering to local labour and tax regulations.
Managed payroll: outsourced payroll services covering end-to-end processing.
Accrued payroll: wages earned by employees but not yet paid.
Tax withholding: the portion of wages retained to meet government obligations.
Bonus payments: additional compensation awarded at year-end or other milestones.