Insights
Reconciling payroll to the general ledger
Payroll control accounts are where unexplained balances go to hide. Clearing them is less about accounting skill than about a consistent monthly routine.
Accounts to reconcile
- Salary and wage expense per cost centre
- Net pay clearing account
- PAYE, UIF and SDL liability accounts
- Third-party payable accounts per beneficiary
- Leave and bonus provision accounts
Why balances drift
Manual journals outside the payroll interface, payments allocated to the wrong account, timing differences between the payroll date and the payment date, and beneficiary payments made for a different amount than was deducted.
Fixing it permanently
Generate the journal from the payroll rather than rekeying it, map every earning and deduction code to a fixed account, and clear each liability against its supporting schedule monthly — the routine described under payroll and GL reconciliation.
Frequently asked questions
Should the net pay clearing account be zero?
After the payment run clears, yes. A persistent balance usually means a payment was rejected, a manual payment was made, or the journal and banking file were not for the same run.
Who owns the payroll GL reconciliation?
Finance owns the ledger, payroll owns the register, and the reconciliation needs both. In practice one person should prepare it and another review it.
How does this help at audit?
Auditors test payroll expense and liabilities. Monthly reconciliations with supporting schedules answer most of those tests before fieldwork starts.
Patuza posts and reconciles the payroll journal so month-end closes without payroll surprises.
Book a consultationRelated services
- Payroll & GL reconciliation →
Payroll reconciled to the general ledger: salary expense, control accounts and payroll liabilities.
- Payroll reporting →
Cost, variance, management and reconciliation reporting from every payroll cycle.
- Payroll audits →
Independent payroll audits covering data integrity, statutory accuracy, controls and risk.
Related topics
- Employer cost →
The true cost of employment: contributions, statutory levies and cost beyond the salary line.
- SDL →
Skills Development Levy: who pays, how it is calculated and how it is recovered.
Related insights
- Payroll reconciliation explained →
What payroll reconciliation means, what it proves and how to run it every month.
- Preparing for a payroll audit →
The documents, reconciliations and controls auditors and SARS ask for first.