What is payroll year-end?
Payroll year-end is the annual close of the payroll year: reconciling the year's pay, tax and deductions, sending employees their annual pay and tax statements and filing the annual returns. In the US the key forms are the W-2 and W-3, due by 31 January; in the UK they are the final Full Payment Submission, P60s and P11Ds.
Also calledyear-end payrollW-2 seasonP60
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- US deadline
- W-2 and W-3 by 31 January
- UK deadline
- P60s by 31 May
- Region
- United States and United Kingdom
Payroll year-end in the US and the UK
In the US the payroll year is the calendar year. Employers give each employee a Form W-2 showing wages and taxes withheld, and file Copy A with the Social Security Administration together with the W-3 transmittal, both by 31 January or the next business day; Form 940 for federal unemployment tax follows by the same date. Before that, the four quarterly Forms 941 are reconciled to the W-2 totals. In the UK the tax year ends on 5 April. The last Full Payment Submission of the year, sent on or before the final payday, tells HM Revenue and Customs it is the final one; employees still employed on 5 April receive a P60 by 31 May; and taxable expenses and benefits not payrolled go on P11Ds by 6 July. Payroll platforms such as Gusto, Rippling and PayFit produce the forms and filings.
Common questions
What is a W-2?+
The US annual statement of an employee's wages and the federal, state and local taxes withheld. Employers send it to each employee and file it with the Social Security Administration by 31 January.
What is a P60?+
The UK end-of-year certificate showing an employee's pay and the income tax and National Insurance deducted in the tax year. Employers give it to everyone employed on 5 April, by 31 May.
What should be reconciled before payroll year-end?+
Year-to-date pay, tax and deductions per employee against the payroll reports, the ledger and the filings made during the year: in the US the quarterly Forms 941, in the UK the Full Payment Submissions and payments.
Software used for payroll year-end
GustoPayroll, benefits and HR built for small businesses.Profile →
RipplingPayroll, benefits and IT unified on one employee record.Profile →
PayFitAutomated European payroll, leave and compliance.Profile →
WarpStartup payroll with automated multi-state tax registration.Profile →
DeelGlobal payroll, contractors and employer of record hiring.Profile →
Intuit QuickBooksSmall business accounting covering books, invoicing and payroll.Profile →Part of Accountio’s accounting technology coverage · Glossary
