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Payroll Expense Reconciliation

Auditors use this workbook to reconcile the payroll expense accounts to the organization’s actual payroll tax return filings. For general workbook instructions, see the comment at cell A2 of the Input worksheet.

Entering Data

The top-left portion of the main input area is to enter quarterly payroll amounts as reported on the quarterly payroll tax returns. The worksheet totals these entries to provide the annual amount reported on the payroll tax returns. The bottom-left portion of the worksheet provides six input rows to list any other items and amounts (positive or negative) that are not included in the payroll tax returns, but which affect the general ledger payroll account balances. The sum of these adjusting items plus the annual amount reported on the payroll tax returns comprise the “Adjusted Total—Payroll Tax Returns” amount at the bottom-left of the main input area.
The right side of the main input area is to enter all related payroll general ledger accounts numbers and balances. Organizations often record payroll cost by various payroll categories (such as full-time and part-time, or exempt and nonexempt) or by program/function. Therefore, there are sometimes numerous payroll accounts. The sum of the general ledger account balances is provided as the “Total Payroll Expense—General Ledger” amount at the bottom-right of the main input area.
When all amounts are input, if the payroll expense is properly reconciled, the two amount totals at the bottom of each side of the main input area should agree. If the two amount totals at the bottom of each side of the main input area do not agree, either the payroll expense is not reconciled or all amounts have not been input. In these instances a warning reminder will appear at the bottom of the main input area.

Inserting and Deleting Line Items

Additional rows may be added or excess rows may be deleted.  See the section “General Workpaper Functionality and Tips for Entering Data” for information concerning the tips for and potential effects of inserting and deleting workbook line items.