How does Zenefits payroll do quarter-end reconciliations or address quarter end variance?
Quarter's-end tax reconciliations are an industry-standard practice used by payroll providers to make sure that that the the taxes collected in the quarter's payroll runs match up with the amounts expected by state and Federal agencies, and to ensure that all tax payments and filings are correct and timely.
In some cases, we'll find variances between these two amounts. Most variances are small, and due to corrections, reversals, or changes to tax rates. For example, state unemployment agencies will reevaluate companies' unemployment tax (SUTA) rates on a yearly basis, assign new rates at the beginning of the year, and communicate these rates via tax notices. After the rate is updated in payroll, reconciliations help to correct any variance so that payments and returns can be updated.
If we do find a variance, we'll add a reconciliation run to your payroll.
- You'll be able to spot one of these runs because it has $0 for taxes and earnings. You won't be able to edit it.
Runs may be added for over or underpayment alike. If there's an underpayment, you'll see a run for a positive amount. If you overpaid, you'll see a credit.
Reconciliation runs will be processed automatically in mid-month at the end of each quarter (April, July, October, and December for end of year).
- Going forward, you might see these runs again the next time Zenefits Payroll does quarter's end reconciliations.
- Download an All-in-One report selected to Pay Period.
- From the drop down, find the pay run labeled Quarter End Variance report or Quarter End Variance run.
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