Payroll tax is part of the payroll cycle itself. Gaps in employee data, pay components or employee movements affect calculation, withholding and year-end reconciliation.
Review the payroll cycle
- Employee data and joiner or leaver dates.
- Fixed and variable pay components and bonuses.
- Recurring deductions and changes during the year.
- Reconciliation between payroll output, entries and accounts.
The review objective
Payroll tax should be traceable from employee data through payroll totals and recorded deductions, with differences identified before they accumulate.
Recurring follow-up
A periodic review cycle helps identify changes when they occur rather than discovering them only during the annual reconciliation.
The actual pay structure and employee data determine the review scope. We therefore start with the real payroll file.