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Manage payroll services Authorise payment of salaries

Reconciliation

It is important that payroll data is reconciled on a regular basis to ensure accuracy of wages, to detect errors or omissions and to ensure accuracy of deductions made to statutory and voluntary authorities.

Automated payroll systems have their own reconciliation checks that are performed each time a pay run is processed. VAPS uses a payroll clearing account, which is reconciled on a monthly basis. This is a manual reconciliation that happens at a general ledger level. It includes checking what has been paid through the bank with the costing of the general ledger.

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Payroll clearing account

The payroll clearing account is a general ledger account that should be brought back to a zero balance. Because payroll accounts and financial accounts work on a different calendar, there may be a time difference between when salary is paid and when it is posted to the payroll clearing account. This should be taken into account when completing the reconciliation.

Find out what happens in your own workplace, or, if you are not working, find out what happens in another workplace.

  1. What methods are used to reconcile payroll data?
  2. Do these methods comply with recommended procedures?
  3. List the method you use for identifying causes of non-reconciliation.

Post your answers to these questions to the ValleyView Meeting room, using the heading Reconcile payroll data. Read other postings and look at the different methods used when reconciling payroll data or finding data when it is not reconciled.

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Manage payroll services Authorise payment of salaries

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