Payroll reconciliation: follow the data, not just the grand total.
Payroll reconciliation compares the records behind a pay period: approved workforce inputs, payroll results, exported records, accounting totals, payment outcomes, and payroll tax filing and remittance confirmations. The goal is to explain differences before relying on the handoff.
By Phi HCM · Updated
This is a software-evaluation and workflow checklist, not tax, legal, or accounting advice. The example below is invented to explain a reconciliation technique; it is not a PHCM customer result.
The employee count matches. The export is still wrong.
Assume a simplified hourly-earnings example with no overtime, premiums, deductions, or taxes. Two sample employees belong in the handoff. An export created before a two-hour correction contains the same employees, but it no longer matches the approved time.
| Sample record | Approved hours | Exported hours | Rate | Expected earnings | Export earnings |
|---|---|---|---|---|---|
| Sample A | 40 | 38 | $25 | $1,000 | $950 |
| Sample B | 30 | 30 | $20 | $600 | $600 |
| Total: 2 records | 70 | 68 | — | $1,600 | $1,550 |
Find the difference
Both versions contain two records. Hours differ by 2 and illustrative earnings differ by $50: 2 × $25. Employee-level comparison identifies Sample A.
Explain the cause
Compare the export timestamp and version with the correction and approval history. In this example, the file predates the approved correction.
Close the loop
Follow the agreed reapproval and replacement-file process, reconcile again, and verify receiver acceptance. Do not send a replacement blindly and risk duplicate processing.
Six checks for the time-to-payroll handoff.
1. Match the population and period
Compare the employee identifiers, pay group, period start and end, and included records. A matching grand total can still hide an omitted employee and an unintended duplicate. Record counts are a control, not proof that the records match.
2. Reconcile time by earning code
Compare approved hours and units with the payroll inputs for each employee and earning code. Check missing punches, late corrections, leave entries, and whether the receiving system expects hours, amounts, or both. Preserve the original source and the corrected version.
3. Reconcile calculation results
Compare configured earnings and deductions with the reviewed Phi HCM payroll result. Investigate changed rates, assignments, and calculation inputs. Validate the tax rules, employer setup, and jurisdiction coverage agreed with the Phi HCM implementation team.
4. Recheck approvals after changes
Identify who prepared, reviewed, and approved the run. If source data changed after approval or export, follow the agreed correction and reapproval process. Do not assume an earlier sign-off covers a later version.
5. Compare the actual exported records
Open the file or transfer result used for the handoff. Match identifiers, earning codes, row counts, hours, and amounts with the approved version. Confirm that the receiving system accepted the records and review its rejection report. Generating a file is not confirmation of acceptance.
6. Reconcile accounting, payments, and payroll taxes
Compare the approved payroll with Phi HCM payment services results, payment settlement, payroll tax filing acceptance, and remittance confirmations. Where Finance is in scope, review mapped costs, liabilities, labor allocations, and payroll-to-GL differences. Investigate exceptions rather than treating a funding report or balanced journal as proof that money moved.
What evidence should your team keep?
Define a review record with the pay-period identifier, source version, export version, reviewer, approval time, control totals, unresolved differences, and receiver acceptance status. Keep access and retention aligned with your organization’s policy; do not copy sensitive employee data into public documents or demonstrations.
Where Phi HCM fits
Phi HCM has its own payroll engine and payment services engine, supporting payroll calculation, employee payment processing, payroll tax filing and remittance, and finance reconciliation. The standard workflow does not require a separate payroll processor. Validate your rules, employer registrations, jurisdiction coverage, funding, payment methods, and release controls with a representative period before go-live. Reconcile confirmed payment and tax-service outcomes to the approved payroll run.