TalentHubTH Brief: Use this guidance together with the actual role, industry, location and business context.
Quick answer
Reconcile salary, bonuses, commission, overtime, deductions, withholding tax and social security for each employee against actual payments and monthly filings. Include joiners, leavers and retrospective adjustments before preparing PND 1 Kor and 50 Tawi.
PND 1 Kor summarises income under Revenue Code sections 40(1) and 40(2). Its standard deadline is within February of the following year. The Revenue Department requires electronic submission of PND 1, PND 1 Kor and PND 1 Kor Special. Check the latest calendar and announcements for the actual filing date.
What does year-end payroll closing cover?
Review compensation from 1 January to 31 December, not only December. Payroll, bank payments, tax returns, social-security records and accounting should be traceable to one another.
- Salary, overtime, commission, incentives, bonuses and awards
- Allowances and other payments, with the correct classification
- Retrospective adjustments and attendance-related deductions
- Withholding tax, social security and provident-fund savings where applicable
- Income and tax for employees who left during the year
PND 1 versus PND 1 Kor
PND 1 is the monthly withholding-tax return for relevant income under sections 40(1) and 40(2). PND 1 Kor is the annual summary. Review every relevant income recipient, including employees below the tax threshold.
Do not simply add monthly returns without checking individuals: leavers, adjustments and inconsistent records can create differences.
1. Check the full-year employee list
Include everyone paid during 2026, not only the December headcount. Removing leavers from the active payroll must not remove their annual records.
- Names and identification or tax numbers
- Start dates, termination dates and employment status
- Salary changes, branches and departments
- Tax and social-security master data
2. Reconcile payroll against bank payments
Net payroll should agree with actual transfers. Document separate runs and later corrections. Do not change only net pay without checking tax and reporting consequences.
- Missed salary payments and subsequent transfers
- Overtime or commission corrections
- Refunded attendance deductions
- Bonuses paid outside the regular run
- Expense reimbursements incorrectly recorded as earnings
- Retrospective salary increases
3. Confirm bonuses and variable compensation
Identify approved amounts, actual payment dates and payments deferred to the next year. Announcement, approval and payment dates may differ. HR, payroll and accounting should agree the calculation, approver, tax treatment, accounting entry and relevant tax year before processing.
4. Reconcile withholding tax by employee
Compare payroll earnings and tax, monthly PND 1 submissions and the proposed PND 1 Kor/50 Tawi figures. Investigate differences instead of inserting unexplained balancing amounts into December.
- Adjustments missing from cumulative totals
- Outdated employee details
- Payments made outside payroll or duplicate bonuses
- Outdated income or allowance information
- Leavers excluded from annual reports
5. Check social-security records
Payroll salary and the contribution wage base need not always be identical, but differences must be explainable under the applicable rules.
- Joiner and leaver status notifications
- Correct first and last contribution months
- Contribution wages supported by source data
- Duplicate, missing or misallocated submissions
- Effects of retrospective salary changes
6. Review leavers
For employment withholding under section 50(1), a 50 Tawi certificate is due by 15 February of the following year, or within one month after leaving during the tax year. Check previously issued certificates against final cumulative records.
- Final salary and payment in lieu of notice where relevant
- Severance or other payments, with their tax classification checked separately
- Leave-related payments, outstanding bonuses and commission
- Tax, social security and certificates already issued
7. Validate 50 Tawi certificates
Compare annual certificate data against PND 1 Kor by employee. For 2026 employment income, prepare before 15 February 2027 and check current official announcements.
- Employer and employee names and tax numbers
- Income type, gross earnings and withholding tax
- Relevant fund contributions or savings
- Tax year and issue date
8. Hand over structured accounting reports
Provide more than net salary: separate salary, overtime, variable pay, bonuses, employer contributions, tax liabilities, employee payables, accruals, prepayments and department or project costs. Use a consistent report and an identified reviewer.
Recommended closing timeline
This is an operational plan. Confirm statutory dates against the latest official calendar.
- October–November: review master data, adjustments and leavers
- Early December: confirm bonuses, commissions, holidays and cut-off dates
- Before December processing: check access rights and approvers
- After December payment: reconcile payroll, banks, tax, social security and accounts
- January: validate cumulative employee data and prepare annual documents
- By 15 February: issue year-end employment 50 Tawi certificates as required
- Within February: prepare PND 1 Kor electronic filing and verify the applicable deadline
Common mistakes
- Checking active employees only
- Adding monthly totals without individual review
- Bonuses recorded in accounts but missing from payroll
- Issuing certificates before reconciling annual data
- Changing net pay without checking tax
- Missing approval evidence or uncontrolled file versions
- Sharing salaries with unrelated people
- No independent reviewer
- Waiting until February to begin
Approval checklist and responsibilities
Assign a preparer, reviewer and status to every item.
- HR prepares the full-year employee list; payroll reviews
- Payroll prepares cumulative earnings and tax; HR/accounting reviews
- HR and managers submit variable pay; management approves
- HR/payroll checks social security and leavers
- Payroll/accounting prepares PND 1 Kor; authorised staff reviews
- Payroll prepares 50 Tawi and accounting reports; HR/accounting reviews
- Retain final files and approval evidence with restricted access
In-house payroll or outsourcing?
In-house processing can work when a trained owner, timely inputs and a separate review are available. Outsourcing may suit employers without a dedicated payroll specialist, with frequent staff changes or complex variable pay, or with fragmented files and confidentiality concerns.
Even with outsourcing, the employer should appoint a coordinator and authorised approver. Leave, overtime, salary changes and bonuses must be confirmed by the company before payment and filing.
Summary and source date
Start before December and reconcile employee data, earnings, tax, social security and adjustments. Make the records traceable before issuing certificates and filing the annual return.
Tax deadlines were checked for the draft dated 29 October 2026 against Revenue Department sources. Verify current announcements before filing. This general guidance does not replace advice on a company’s specific facts.
Talk to TalentHubTH about payroll
Preparing year-end payroll while salary, tax, social security and accounting data sit in separate files? TalentHubTH supports Thai, international and Chinese-invested companies with payroll calculations, overtime, commission, bonuses, deductions, employee tax, social security, payslips and accounting reports within the agreed scope.
Share your headcount, pay cycle and compensation structure for a scope assessment and quotation. LINE Official: @talenthubth | Telephone: 066-059-9440 | Email: talentshubth@gmail.com.
Frequently asked questions
Does PND 1 Kor include only employees who pay tax?
No. Review all relevant recipients of section 40(1) and 40(2) income, including employees below the tax threshold.
Are leavers included?
Include relevant income paid during the tax year even if the employee left before December.
When is 50 Tawi due?
For employment withholding under section 50(1), by 15 February of the following year, or within one month after an employee leaves during the year.
Which tax year includes a December bonus?
Check the facts and actual payment date, not only the label annual bonus. Payroll and accounting should agree before processing.
What if monthly PND 1 and payroll do not match?
Investigate by month and employee, check actual payments and adjustments, then determine whether records or filings need correction.
Can 50 Tawi be prepared before PND 1 Kor?
Yes, but reconcile the underlying data first. Do not delay the certificate beyond its deadline while waiting to file the annual return.
Who approves outsourced payroll?
The company’s authorised approver should review and approve before payment and statutory submission.