Quarter's End Reconciliations in Zenefits Payroll
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.
During a reconciliation, Zenefits Payroll looks for variances between the taxes collected in the quarter and the taxes owed to tax agencies. 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 helps to correct any variance so that payments and returns can be updated.
If you receive a tax notice, make sure to contact Support and provide the notice. Zenefits Payroll will automatically perform reconciliations as necessary based on the notice.
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