‘’A Sunday well spent brings a week of content’’ – Proverb
As the proverb suggests, if one should spend their Sunday evening well – preparing for the week ahead and tidying away the previous week’s clutter – then the next 7 days to come will promise to bring an air of content and organisation. With this in mind, is it not wise to spend the latter half of December, tidying up the previous year and preparing for the new (financial) year to come?
As many organisations’ financial year comes to an end, and preparations begin for the next – schedules get busier, deadlines loom closer and the to-do list can seem never ending. With this in mind, Immedis have put together an overview to coordinate rounding off the financial year, and preparing for the payroll year ahead.
When operating a global payroll, employers have to deal with many different sets of rules. While every country is different and has their own nuances – there are, however, similar objectives and challenges around the world.
As we approach Christmas, and in Europe’s case – a shutdown of operations for in some cases up to 2 weeks – it is important to note that this is not the same in every jurisdiction. While many countries operate on a calendar tax year basis, remember that December 31st does not always mark the payroll year end in every country. Therefore, when operating in multiple jurisdictions, it is important to ensure you have a calendar illustrating the global view.
Regardless of whether or not you are facing year end challenges in December this overview will be helpful when you reach the relevant year end in any country (as the challenges are similar).
When we talk about payroll year end considerations we can break this down to 2 separate categories:
Looking back over the past year is both a time to reflect on the past 12 months but more importantly, a time to review your employee data and ensure both accuracy and consistency. Some factors to consider when looking back:
Year end filings with tax authorities – will this be done online or by paper? What are the country specific deadlines? Who in the organisation holds responsibility?
While looking back can be a time to reflect, looking forward should be used as a time to plan and more importantly, review all your data to start the new year fresh, consistent and with proper procedures and information already in place. Factors to consider looking forward:
December is challenging as it is a short month but often times people are shocked by how challenging January is. Start your new year organised- with all your data up-to-date so you can put your focus on your business strategies, ensuring compliance and actioning best practices moving into the next 12 months.
Be prepared before you close up shop for the Christmas period!
Christine Keily is the Chief Tax & Payroll Officer at Immedis.