Payroll Reconciliation is the process of verifying payroll transactions and comparing the current payroll with the previous one to make sure that Payroll is calculated accurately and there is no error. It is the process of keeping accounting, reporting, calculating accurate and error-free as it maintains the financial health of a company.
During the Payroll Reconciliation, it is ensured that the correct amount is calculated for each employee as a salary and the same is recorded in the ledger. A company has to be sure about all payroll accounting transactions, expenses, liabilities, and calculations.
The following details must be correct during the Payroll Reconciliation process:
- Employer taxes
- Number of hours worked vs hours calculated
- Over time, leaves
- Wages/ Salaries