How to Reconcile Discrepancies from Processed or Approved Payroll runs

Addressing these discrepancies promptly is essential to maintain employee trust and compliance with legal and regulatory requirements. Once payroll for Regular, Special, Final, and 13th-month runs has been paid out to employees, we do not permit unposting or editing. This policy is in place to avoid the risk of errors, including issues with past calculations that cannot be reversed.

This guide outlines steps on how to correct discrepancies from an Approved run.

Sample Scenario

The Pag ibig contribution set up in the Company Profile is fixed at 100 for Employee shares and 100 for Employer shares. Hence, the actual deduction for the month of February is 100 Employee shares and 100 Employer shares. However, based on Pag ibig memo, the should-be contribution effective February is 200 Employee shares and 200 Employer shares. 

1. Create an Adjustment run for the Month of February. Government contribution should be off

Note: Reconciling Payroll has effect on monthly reports such as 1610c, Statutory report, Certificate of Contribution and etc. As such, it is also important to consider the Payroll Month in your Adjustment setup as it may impact reports

2. Upload the difference between the actual amount on the processed Payroll vs the should-be amount via one-time adjustment. How to Set Up a One-Time Adjustment for a Specific Employee

First Adjustment

HDMF Employee share: -100

Second Adjustment

HDMF Employer share: +100

Please note that the purpose of this adjustment is to correct the record. To deduct the HDMF Employee share under deduction, another one-time adjustment can be made by uploading a -100 Miscellaneous entry on the next payroll run.

The steps outlined can also be utilized for reconciling Salaries, Deductions, and other Government-related items. The type of Adjustment to use should be determined by the specific income or deduction you need to reconcile. Adjustment Types on Sprout Payroll