Then you’ll need to make an end-of-year finalisation declaration through STP each year by 14 July. You’ll need to do it every pay period before you pay employees via Single Touch Payroll (STP). Payroll reconciliation should happen frequently. The simplest way to think about it is double-checking your math to ensure that you pay your employees correctly. Payroll reconciliation is when you compare your payroll register with the amount you’re planning to pay out to your employees to confirm that those numbers match. Use the links below to jump to the section that best covers your query, or read from start to finish for an in-depth overview on the topic. Even though it wasn’t intentional, now you’ve underpaid them and could be subject to penalties.Įither way, you have a big mess on your hands and it’s proof that the payroll reconciliation process is an important part of managing payroll. Your employee was entitled to $800 in pay, but you only gave them $750. Or maybe you messed things up in the opposite direction. What do you do? Do you ask them to refund the overpayment? Do you apply it to their next check? This payroll process might sound onerous, but it helps with everything from preparing for taxes to monitoring your business expenses – not to mention ensuring that you pay your employees correctly.įor example, imagine that your employee’s pay was supposed to be $800, but you made a mistake and paid them $950 instead. You know that paying your employees is important.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |