As we close out the calendar year, payroll professionals across the world prepare for year-end activities for countries having a fiscal year that runs from January through December 2025. Countries like Singapore, the Netherlands, and Mexico all have their own unique requirements for the final payroll cycle of the year and issuing year-end statements, forms, and reports.
While the requirements may differ, there are generally applicable concepts and practices for global payroll professionals to be aware of and adopt.
Singapore
Singapore’s tax year follows the calendar year, but its year-end payroll cycle is driven by the IR8A reporting deadline. Employers must prepare annual remuneration statements for each employee and submit them electronically to the Inland Revenue Authority of Singapore (IRAS) by 1 March of the following year. Forms include:
- IR8A for employee income details for all employees
- Appendix 8A to report benefits-in-kind
- Appendix 8B for employees who derived gains or profits from equity
- IR8S with the details of employers and employees’ contributions to the Central Provident Fund
Employers must ensure all taxable allowances, benefits, and reimbursements are correctly reported. Errors often occur when stock options, expat allowances, or termination payments are missed or misclassified. Companies using the Auto-Inclusion Scheme (AIS) submissions must reconcile data across HR and finance systems well before January to prevent rejections by IRAS, as this information will be auto-included in the employees' tax returns.
The Netherlands
In the Netherlands, year-end is a mix of forms that need to be issued and the final payroll tax return. The payroll tax return (“loonaangifte”) for December marks the official close of the payroll year, with a final submission due by the end of January for monthly payroll cycles. Employers must verify that:
- The final payroll tax return includes any year-end corrections, such as for the 30%-ruling and trailing equity of the current fiscal year. Often, a so-called “13th run” is processed to capture any trailing reportable items.
- For the work-related cost scheme (WKR), the final amount due (based on a mapping of expenses, remuneration, and other items into taxable, non-taxable and nil-assessments) must be reported in the second payroll tax return of the following year. For monthly payroll cycles, this means it has to be reported in the payroll tax return for February 2026.
Additionally, all employees must receive an annual income statement (“jaaropgave”), which is usually issued in January or February of the following year, and includes all wages received, payroll taxes deducted, and other mandatory deductions and contributions.
Mexico
Mexico’s payroll year-end is one of the most procedural in the world. Employers must finalise all CFDI (“Comprobante Fiscal Digital por Internet”) payroll stamps, ensuring that every payslip is electronically validated and authorised by the SAT (Tax Administration Service). Critical tasks include:
- Reconciling income tax (“Impuesto sobre la Renta or ISR”) and social security (“Instituto Mexicano del Seguro Social or IMSS”) contributions
- Closing out PTU (profit-sharing) accruals for the fiscal year
- Running a December “aguinaldo” (Christmas bonus) payroll in compliance with the Federal Labour Law (minimum 15 days’ worth of pay), which must be paid by 20 December 2025
- Ensuring all final digital payslips are correctly timestamped and aligned with the SAT XML schema
Although not required, employers may issue the annual employee tax summary (“Constancia de Percepciones y Retenciones”), which mirrors the information the SAT receives through CFDI records.
Common Year-End Themes Across Countries
While every country has its own specific year-end payroll requirements, a few universal themes apply everywhere. The first is the need for complete and accurate data covering the entire fiscal year. Governments continue to digitise, and payroll data must now be submitted electronically, in prescribed formats, and strictly within statutory deadlines. Also, employees expect timely access to their annual forms and statements, enabling them to finalise their personal tax returns and financial planning.
Year-end has therefore become not just a compliance checkpoint, but a critical moment for payroll to demonstrate accuracy, transparency, and reliability.
Best Practices for Global Payroll Teams
Global payroll leaders should adopt these best practices in their year-end operations:
- Create a unified global year-end checklist. Capture local statutory deliverables, deadlines, dependencies per country, and data requirements (and owners) to avoid blind spots.
- Validate data early and often. Keep payroll records, employee data, employment data, and remuneration and benefit data accurate throughout the year to prevent downstream corrections.
- Reconcile pay elements in advance. Review bonuses, commissions, benefits, equity, and variable pay for accuracy and timing before the final payroll run. Ensure that all that is reportable in the current fiscal year is properly reported.
- Centralise governance, localise compliance. Use a global compliance framework with local experts, whether in-house or through partners, handling statutory filings and data interpretation.
- Communicate clearly. Brief stakeholders on whose data you are dependent early on upcoming deadlines and requirements. Inform employees when they can expect year-end statements and where they can go for questions.
Strong year-end execution, therefore, depends on early planning, accurate data, and clear ownership of every step in the process.
Key Takeaways
Payroll year-end requires careful coordination of data, systems, and deadlines. Across all countries, the main priorities are to verify that employee information is complete, that taxable income and benefits are correctly reported, and that all payroll taxes and social security contributions reconcile with statutory returns. Timely submission of forms and accurate electronic reporting are essential, as most authorities now operate fully digital systems with little tolerance for late or incorrect filings.
Clear communication with finance, HR, and employees ensures that everyone understands what information is needed and when. Consistent preparation and validation throughout the year are the most effective ways to achieve a smooth and compliant year-end process.
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Max van der Klis-Busink, MCIPP, RPP, is the Owner of Passion For Payroll and Vice President of Global Strategy on PayrollOrg’s Board of Directors.
