8. Payroll Reconciliation

8. Payroll Reconciliation

What is Payroll Reconciliation?

Payroll reconciliation has to do with the comparison of payroll for one period versus another period. Reconciliation of the two different payroll periods can include changes to wages, overtime, and etc. The purpose of reconciliation is to ensure that all the payments to employee and statutory bodies are paid accordingly and accurately.

Scenario 1: Socso Deductions

Mid-month Payment

Salary -> RM 1,250

Socso Deduction for Mid-month -> Employee Portion= RM 6.25, Employer Portion= RM 28.10 (Based on Socso Table, row 17)

End-month Payment

Salary -> RM 1,250

Socso Deduction for End-month -> Employee Portion= RM 12.25 - 6.25= RM 6.00, Employer Portion= RM 55.10 - 28.10= RM 27.00 (Based on Socso Table, row 29)

For end month payment, amount to be paid to Socso will be based on the payable amount for End month - amount that has been paid to Socso during Mid month.


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