The end of the year is a critical juncture for HR and payroll teams. It’s the perfect time for reflection and, more importantly, for setting up a seamless transition into the new year. Closing out administrative tasks requires a clear plan to ensure compliance and accuracy. Here’s a practical, step-by-step year-end checklist for HR and payroll professionals to get organised and stay compliant.
1. Key Payroll Checks and Reconciliations
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The final payroll run of the year demands absolute accuracy. Before processing your last payment, you must complete these essential checks:
- Finalise all variable payments: Reconcile and calculate year-end bonuses, sales commissions, and other variable payments to ensure they are correct.
- Review and reconcile all payroll data: Conduct a final review of all employee salaries, allowances, and deductions to identify any discrepancies that accumulated throughout the year.
- Verify statutory contributions: Confirm that all Central Provident Fund (CPF), Skill Development Levy (SDL), and other statutory contributions for the year are completely accurate.
A thorough reconciliation at this stage is vital to preventing issues during tax season and guaranteeing accurate employee payments.
2. Prepare for Tax Submissions
The year’s closing marks the crucial beginning of tax season preparations for employers in Singapore, specifically the Auto-Inclusion Scheme (AIS) submissions.
- AIS Submission: Employers who are part of the AIS must submit their employees’ income information electronically to the Inland Revenue Authority of Singapore (IRAS) by the deadline. BIPO’s HRMS simplifies and assists with your AIS submission, reducing manual work and compliance risk.
- Required forms: Gather and verify the necessary information for the required forms, including Form IR8A (employee’s income), Appendix 8A (benefits-in-kind), and Appendix 8B (stock options).
Accurate and timely submissions are critical to ensuring compliance and a smooth tax season for your employees.
3. Employee Data and Administrative Tasks
Beyond payroll and taxes, several critical HR administrative tasks must be completed before the new year. Here’s a year-end checklist to help you ensure all employee data is up-to-date:
- Update employee information: Use this opportunity to have employees review and update their personal details, contact information, and bank accounts in your system. A central HR software in Singapore with an employee self-service portal makes this process efficient.
- Finalise leave requests: Encourage employees to submit any outstanding leave requests for the year and finalise all leave balances. A robust leave management system ensures accurate balances carry over into the new year.
- Prepare for performance reviews: It’s essential to prepare the groundwork for performance reviews and appraisals scheduled for the coming year, ensuring alignment with business goals.
4. Review Policies for the New Year
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The end of the year presents a key strategic opportunity to review and update your HR policies to maintain compliance and competitiveness. For instance:
- Statutory changes: Stay informed about upcoming statutory changes for 2026, such as the continued increase in the CPF Ordinary Wage (OW) ceiling and adjustments to CPF contribution rates for senior workers.
- Flexible Work Arrangements (FWA): Review and formalise your FWA policies. Ensure your HRMS allows employees to easily submit and document FWA requests, and that your system has a proper documentation process.
- Key Employment Terms (KETs): Review your KETs, including leave entitlements, benefits, and compensation, to ensure they remain competitive and compliant with the latest regulations.
- Employee benefits: Consider updating your employee benefits package to align with new HR trends and employee expectations.
Embrace a Hassle-Free 2026 with BIPO
Navigating this extensive end-of-year payroll checklist doesn’t have to be complex. BIPO is your trusted partner, offering solutions that automate these year-end tasks and ensure a hassle-free close to the year.
Our comprehensive global HRMS simplifies the entire process, from payroll reconciliation to AIS submissions. Our integrated modules ensure that all data is seamlessly processed, reducing errors and saving you time.
Talk to our experts to learn how BIPO’s solutions can help you prepare for the new year.
