Payroll Reconciliation

OBJECTIVE

The Payroll Reconciliation option is used to adjusts labour costs between projects and payroll to provide an actual cost. This step is generally performed after entering hours and doing the payroll calculation.

If a project, an activity and a group are specified in Employee Management (Other Modules tab, under the Departmental Accounting sub-section of the Time Management section), payroll reconciliation adjusts the variance between payroll and projects with an accounting entry using this information. If not, Maestro* performs the same treatment with the project, activity and group entered in Configuration – Time Management, in the Reconciliation Payroll-Project section.

 

Payroll reconciliation only applies when hours are processed using the Balanced method. For more information on payroll reconciliation configuration, consult the How To titled Using the balanced method to process hours.

 

 

The fringe benefits are calculated on the Bonus premium type, which affect the QPP or employment insurance for earnings.

No fringe benefits are calculated on the bonuses that do not affect federal or provincial income taxes. That is, Deduction, % Deduction on Net, Expense Reimbursement or Garnishee types. These parameters are available in the Payroll Calculation tab of the Define Earning/Deduction Codes option.

 

PREREQUISITEs

 

steps

 

maestro* > Time Management > Project Time > Accounting > Payroll Reconciliation

 

Reconcile the payroll

  1. Select a Committee and the Pay Periods.

 

The payroll reconciliation process is carried out only for the selected committees and according to the committee entered in the employee’s category of employment at the time of the payroll reconciliation.

  1. Check the Hours from selected committees box if needed.

If checked, maestro * reads the project hours only for the selected committees. This function is to be used when, for the same employee, there are hours entered in two committees with different pay periods.

  1. Click on Accept.

Validate the hours and amounts for each employee in the Project and Payroll sections.

 

If an error is detected during reconciliation process, a check mark is displayed in the Err column. This means it is impossible to reconcile the amounts.

The hours assigned to the project and in the payroll must be identical. Maestro* accepts a variance of $ 2 per employee. If the variance is greater than $ 2, the payroll cannot be reconciled until the hours or wages have been adjusted.

This message also refers to the following document: Cheat Sheet - Error(s) During Payroll Reconciliation.
  1. Close the Maestro Report Viewer.
  2. If no errors were detected earlier, click on Yes to reconcile the amounts.

 

With the help of the Maestro* Lists option (available under the Print lists and reports icon from the main menu), it is possible to obtain the detail of calculated fringe benefits by projects, by selecting the report entitled Fringe benefits detailed by project.

If the Supplier Invoice Reconciliation option is installed, hours entered for employees linked to supplier codes are not displayed on the report. No fringe benefits will be distributed to these transactions, since they are treated separately from payroll hours. For more details, refer to the How To on Reconciling Supplier Hours.
  1. Open the Payroll Reconciliation Report option and print the report.
  2. Validate whether the Accrued Labour Account and Accrued Fringe Benefits Account balance. When the amounts are subtracted, the result must be 0.

 

Expense bonuses can be separated in an account (e.g.: Accrued Expenses). The same account validation applies.

If vacations have been paid, add the amounts in the Pay and Vacation sections. The result must be equal to the amount in the Project section.

Each cheque created is displayed on a separate line. To identify a second cheque for the period, the ID column displays the value 2.

 

See also

 

Last modification: September 20, 2024