Reconciling the payroll is a task that requires a keen eye for detail and a full-time job. For most, going to work and waiting for their salary is every other week is the full length of their acquaintance with payroll. To some, and this means to those who are tasked with reconciling the payroll, they have to make sure that everyone gets paid the right amount, on time, and that the books are balanced.
To reconcile payroll, you have to know how many are on the payroll and are expecting to be paid and in what amounts. This means that you have to watch out if there are any newly hired staff, if any was terminated, how many of the staff are due for salary adjustment and increase, how many went on vacation or sick leave and if those are paid or unpaid, how many are going to reimbursed overtime fee and how many to deduct late fees. All these things are details that you must know to make sure that the payroll is balanced and that the people get what they are due.
The thing with payroll is that you are dealing with people’s lifeline. Imagine if there was a mistake with your payroll account – if you were given more or less than what you should have gotten. It would create problems and inconvenience for you. If you are the one handling the payroll and there was a mishap then you would be dealing with the employees and the banks, making affidavits and updating the ledger to smooth things over while next payroll is already waiting for you. So it is better to get it done right even if it takes a little more time if it means you will avoid all the hassle and confusion.
- The process flow for the processing of payments and payroll is:
- Employees complete their timesheets and monthly absence summaries.
- Supervisors approve timesheets and monthly absence summaries.
- Data entered into software.
- Another person will review the data.
- Expense Distribution Reports made available for managerial review.
- Pay day.
- In light of this, to reconcile the payroll one should first collect the time. This means to make sure all hours worked and absences are reported. The salary to be processed will be based on the hours worked.
- Gather the time timesheets or the log records and encode these on the payroll software. Make sure that the timesheets and absence leaves are all approved by the concerned manager. Make sure that everything is accurate to detect time clock fraud.
- Get the final manager’s approval before releasing checks and submitting electronic funds transfers (EFT).
- Authorize EFT and release checks.
- Make sure that the checks are deposited to employees’ accounts. You can also track the checks to see that they all clear on time.
Lastly, make sure you maintain payroll records on file in case dispute arises. Have everything on file so that when an employee inquires about salaries and deductions you have documents to show him.