Year-end close and filing
Reconciling the year's runs to the returns filed, correcting what is wrong, producing the year-end statement and employee tax certificates, filing, resetting the year-to-date counters and locking the tax year.
6 stages · 2 approvals
Roles and responsibilities
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Step 1Reconcile
Pay Run NumberLegal EntityRun TypePeriod EndOff Cycle
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Step 2Correct
Pay Run NumberLegal EntityRun TypePeriod EndOff Cycle
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Step 3Statements
Payslip NumberPay RunPay DateDays Paid
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Step 4Approve and file
Filing NumberLegal EntityFiling TypePeriod EndSocial Insurance Return
Process steps
Follow the process from start to finish. Select a step to see who acts and what changes.
Reconcile
For each entity and each filing type, the sum of the year's posted runs is compared with the filings prepared and paid. The Statutory Liability Summary shows the difference by authority and period. Per employee, the year-to-date on the last payslip is compared with the sum of their payslip lines.
Correct
Differences are traced to the run and the payslip. Corrections are made as an arrears or off-cycle run inside the year where the period is open, or as an amended filing where it is closed. Posted payslips are never edited.
Statements
Payroll Officer prepares the year-end statement and employee tax certificates from the year's payslips, then reviews them against the register. A certificate links its ApprovalStatement and is published to its employee only after the statement is approved.
Approval required
Approve and file
Finance Controller records ApprovedBy and ApprovedOn on the year-end statement, moving it from PendingApproval to Approved, and authorises any payment owed. The Payroll Officer files, records the acknowledgement, and files any amendments the authority requires.
Reset
Finance Controller creates the next TaxYears record, and Payroll Officer prepares the new-year setup. Year-to-date reporting starts from that year's dates; the prior year's payslip lines are retained. New statutory rules with effect from the new year are already in the table with their bands and effective dates, and the new year's periods are generated from each calendar. Every employee needs verified tax details for the new year before its first run. Leave balances are not part of this stage; they roll on each policy's own leave year.
Approval required
Lock
The Finance Controller locks the tax year record. Posting into it requires reopening by a named role and is logged, and any change after that is an amended filing.
Approvals and exception handling
2 approvals required in this process
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Approve and file
Finance Controller signs · reset waits
StatutoryFilings -
Lock
Finance Controller signs · closes the process
TaxYears, PayPeriods
When the process needs attention
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mismatch
The certificate that does not match the payslips
Both are built from the same payslip lines. The reconciliation lists any employee whose year-to-date differs from the sum before certificates are generated.
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exception
The rate change applied to the wrong month
Rules are effective-dated and the run reads the rows on its pay date. Recalculating a period after year-end reproduces the original.
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exception
The leaver whose certificate nobody sent
Exited employees keep self-service access to payslips and certificates.
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exception
The run posted into a closed year
The year lock is a record with who locked it and when, and a run dated inside it is refused until a named role reopens the year.
Records and postings
| Stage | Records | Effect |
|---|---|---|
| 1 Reconcile | PayRunsPayslipsPayslipLinesStatutoryFilings | differences listed by authority and employee |
| 2 Correct | PayRunsStatutoryFilings | year totals corrected |
| 3 Statements | StatutoryFilingsPayslips | certificates generated |
| 4 Approve and file | StatutoryFilings | balance owed paid |
| 5 Reset | TaxYearsPayPeriodsEmployeeTaxDetails | new tax year opened |
| 6 Lock | TaxYearsPayPeriods | year locked |
Process reports
All reportsPayroll Register
Every payslip in a run with days paid, gross, each deduction, employer contributions and net; the document the approver signs off.
Statutory Liability Summary
Withholding, social insurance and pension amounts by entity, jurisdiction and period, with what has been filed, paid and is still owed.
Changes Since Last Run
Joiners, leavers, compensation revisions, assignment changes, bank and tax-detail changes and new garnishments in the period, with who approved each.
Headcount and Attrition
Headcount by entity, department and employment type from the assignments effective in the month, with joiners and leavers and the reasons for leaving.
Leave Liability
Accrued unused leave per employee valued at the current daily rate, for the balance sheet accrual.
Payment Reconciliation
Net pay per payslip against confirmed payments counted once, linking returned and reissued attempts and listing the remaining released and held obligations.
Run by an agent
Agent support
The configured workflows must prevent agents from approving offers or bank-account changes, approving payroll, authorising payments, posting journals, approving year-end statements or locking periods. The assigned person records each decision. Rehearsal must verify identity, masking, the audit record and refusal of unauthorised actions before an agent may write.
# Example after configuration
$ curl -fsSL https://www.erp.ai/skill.md | paste into your agent
› year-end close and filing · reconcile on PayRuns, Payslips, PayslipLines, StatutoryFilings
✓ For each entity and each filing type, the sum of the year's posted runs is compared with the filings prepared and paid.
› year-end close and filing · correct on PayRuns, StatutoryFilings
✓ Differences are traced to the run and the payslip.
› year-end close and filing · statements on StatutoryFilings, Payslips
✓ Payroll Officer prepares the year-end statement and employee tax certificates from the year's payslips, then reviews them against the register.
› year-end close and filing · approve and file on StatutoryFilings
⏸ approval · waiting for the finance controller
# 2 more stages after approval: reset, lock
Other processes
5 morePay run
Inputs, calculation, payroll approval, payment authorisation and posting, with held amounts reconciled separately.
8 stages · 3 approvals
Hire to pay
From offer approval to the first payslip, with verified bank details, salary approval and separate payment authorisation.
8 stages · 7 approvals
Leave request to payroll
How a leave request becomes a balance movement, an attendance status and, where the leave is unpaid, a loss-of-pay day in the run, with the manager's gate in the middle.
6 stages · 1 approval
Roster to pay
For hourly and shift staff: publish the roster, capture the punches, correct the gaps, approve the timesheet, lock at cutoff and pay hours, overtime and shift premiums.
6 stages · 2 approvals
Exit to final settlement
Notice, documented terminal amounts, clearance, final payroll approval and separate payment authorisation before closure.
7 stages · 5 approvals