If you have employees then you know you also are subject to payroll tax, super expenses and Work Cover.
These are the big three and accurate, reconciled reporting is vital for compliance.
Reconciliation involves verifying that transactions are in balance and applied to the correct amounts. Reconciling a payroll transaction involves several different accounts, which may include Social Security with holdings, Medicare and insurance deductions as well as taxes.
Before submitting a payroll the calculations must be verified and audited for any errors and subsequent adjustments. After a payroll is processed it must then be checked to ensure that the entries are correct and posted to the correct accounts and to check that the taxes for the period are posted correctly.
When a payroll is completed it should then be reviewed again and validated. The reconciliation and balancing of a payroll also includes making sure that every posting is validated and distributed to the appropriate cost accounts. It should also be reconciled against your budget for the period.
With over-time and other hidden payroll costs, it is very easy for a payroll budget to blow out. Fine tuning and constant tracking can help you to keep these expenses in line. Running payroll reconciliations will stand you in good stead when it comes to accurate job costings and quoting, thereby saving you from both budget blowouts and under quoting.
If your payroll is not reconciled and your calculations and expense entries are not correct, this will lead to other areas of your financial reporting and accounting to be wrong.
- Confirmation of pay period hours
- Rates of pay
- Sick and holiday hours
Let Tradie Bookkeeping Services run your payroll whilst you run your business and both make and save money! As a local, integrity driven specialist based on the Sunshine Coast, we provide the expertise and trade experience that will allow you to focus on your business.
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