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How do I reconcile Payroll taxes?

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Summary

Print reports that compare the transaction file to the master file to reconcile taxes in Payroll. This process can be used as part of your year-end, quarter-end and month-end procedures.

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Cause

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To verify that tax amounts are correct on both the transaction file and the master file, use the steps below:

Print the Deposit Summary report:

  1. From the Payroll Reports menu, select Pay Period Processing, Deposit Summary.
  2. Select the current transaction file.
  3. Enter a Check Date range you are reconciling.
    Note: If reconciling for tax reporting, enter the date range for full month, quarter, or year. Payroll will post checks to the master file by using the Check Date. It's important that when running transaction reports you also use Check Date.
  4. Click Start.

Print the Subject-to Employee report:

  1. From the Payroll Reports menu, select Tax Preparation, Subject-to Employee.
  2. Click Start.

Compare the totals for Federal, State, and Local taxes on the Subject-to Employee report to the Employee totals on the Deposit Summary report. The totals should match.

Print the Subject-to Employer report:

  1. From the Payroll Reports menu, select Reports, Tax Preparation, Subject-to Employer.
  2. Click Start.

Compare the Federal, State, and Local taxes to the employer totals on the Deposit Summary report. The totals should match.

If the totals do not match, determine where the discrepancy is.
Note: To determine where the discrepancy is, it may be necessary to print the Tax Reconciliation Report in order to compare the totals for the master file to the transaction file on an individual employee basis. See How do I reconcile an employee's check file totals to the employee master file totals for taxes?

Related Solutions

Where can I find Year-End Procedures Guides (YEPG)?
´╗┐How do I reconcile Payroll to Payroll?