Payroll
Payroll reconciliation
Payroll reconciliation is the check that this month's payroll totals agree with last month's plus explained changes, and that statutory registers agree with the payslips.
A reconciliation lists every difference between two payroll runs (joiners, leavers, increments, LOP, arrears) and confirms the totals move by exactly those amounts. It also ties the PF ECR, ESI return and TDS challan back to the salary register.
It is the control finance relies on before releasing the bank file.
In Indian payroll
When a company moves payroll systems, a parallel run reconciled to the rupee is the only honest proof the new system is right. It is also what the auditor asks for.
What is Payroll reconciliation?
Payroll reconciliation is the check that this month's payroll totals agree with last month's plus explained changes, and that statutory registers agree with the payslips.
Why does Payroll reconciliation matter in Indian payroll?
When a company moves payroll systems, a parallel run reconciled to the rupee is the only honest proof the new system is right. It is also what the auditor asks for.
Related terms
In Kuzhu
The Payroll module in Kuzhu is where Payroll reconciliation is handled, on the same employee record as everything else.
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