How to issue the annual income statement to employees

What is it for?

Each employee receives from the company, by 20 January, a document with what they were paid in the previous year, the Personal Income Tax (IRS) withheld and the mandatory contributions. fiscaldoo creates one statement per employee from the payslips paid in the year and prints it as a PDF.

When to use it?

• In January, after the December payroll has been paid, for the previous year.

Where to find it?

• To create the year's statements: Payroll › What is there to do this month? screen › Supporting lists block › Generate the annual statements.
• To open, issue and print them: Payroll › Declare › Statements to the workers.

Before you start

• Your profile is Payroll Processor: you generate, issue and print.
• All the year's payroll has been paid, including December and the differences from corrections. A payment not yet executed is not included.

How to use it

1. Open Payroll. On the What is there to do this month? screen, scroll down to Supporting lists and click Generate the annual statements.
2. In the window, in Year of the income, enter the example's year, 2026 (by default it shows the year before the current one, 2025 on 01/11/2026). In Department, choose a department only if you want to generate for some of the employees. Click Generate.
3. Statements to the workers opens, grouped by year, with one Draft statement per employee with payments in the year: Type “Annual (until 20 January)”, Due, Income and IRS withheld.
4. Open the year's group and an employee's statement (the list is grouped by year) and check the Totals (Income, IRS withheld, Mandatory contributions, Union dues, Income without withholding and Exempt prize (A41)), the Income by code tab and the Payments tab, with the payslips included.
5. If you changed a payslip of the year after generating, click Calculate to redo the totals.
6. Click Issue. If the year is still running, the button is called Issue as provisional and opens the window “The year of this statement is still running, so it will only state the income paid until today and will be marked as provisional. Once issued it cannot be changed. Issue it as provisional?”, with Confirm and Discard. The statement becomes Issued, with the date in Issued on, and can no longer be changed; for a running year it shows “Provisional statement: issued while the year was still running, it only states the income paid until the day of issue. After the year ends, generate and issue the final one.”
7. Click Print (PDF) and give the PDF to the employee.

Example. Ana Margarida Pinto received in 2026, up to 01/11/2026, four salaries of €2,400.00 (paid on 30/06, 31/07, 31/08 and 30/09/2026) and the October one (€2,529.15, with €129.15 of meal allowance, paid on 01/11/2026). The 2026 statement has:

• Income €12,129.15: €12,000.00 with code A “Category-A income subject to withholding (not declared under a more specific code)” and €129.15 with code A21 “Meal allowance (untaxed part)”;
• IRS withheld €855.00 (5 × €171.00);
• Mandatory contributions €1,320.00 (11 % of €12,000.00);
• Union dues and Income without withholding €0.00.

The “Statement of income and withholdings” PDF repeats these totals, carries the mark “PROVISIONAL: issued while the year was still running, it only states the income paid until the day of issue.” and lists the five payments with the date, the income and the IRS withheld of each. The 8 statements for 2026 of Empresa Demonstração, Lda add up to €57,843.30 of income and €4,233.00 of IRS withheld.

Pending validation by a certified accountant: the 20 January deadline (IRS Code (CIRS) art. 119, no. 1, sub-para. b)); and whether the untaxed part of the meal allowance (A21, €129.15 in the example) should be added to the statement's Income, as it is today, or be left out.

Issuing the statements does not create journal entries.

Expected result

• Each employee has an Issued statement, with the PDF.
• The totals of each statement match the payslips paid in the year and the year's DMR.

Important notes

• Issue only after the year's last payment. For a running year fiscaldoo asks for confirmation and marks the statement as provisional, but issues it anyway, with only what has been paid until today, and an issued statement can no longer be changed. To give to the employee, generate and issue the final one in January of the following year, after the December payroll has been paid.
• Only what has been paid counts. The November payslip, validated but unpaid, is not included in a statement generated today: only executed payments are included.
• Year without payments. For 2025, a year without payroll in the company (and the default year), Generate creates no statement and no message appears: check the Year of the income.
• Generating again does not touch the existing statements: it only creates the missing ones.
• Employee who leaves mid-year. Pending on-screen validation: the statement requested on leaving was not tested.

Common problems

Generate did not create any statement

• Cause: the chosen year has no executed payments (for example 2025 in the demo), or the chosen Department has no employees with payments.
• What to do: check the Year of the income and leave Department empty.

A salary is missing from the statement

• Cause: the payment of that salary was not executed (it was generated but not paid), or it was paid in the following year.
• What to do: execute the payment (How to pay salaries) and, on the statement still in Draft, click Calculate.