USA
UK
Australia
UAE
Canada
At OBG Outsourcing Private Limited, we understand that running payroll isn’t just about paying your team on time—it’s about managing complex, multi-layered financial commitments. Every payroll run creates liabilities: tax withholdings, health insurance premiums, retirement contributions, and statutory deductions.
When your actual liabilities don’t match what’s recorded on your books, costly tax penalties, audit red flags, and sudden cash flow gaps can occur. We bridge the gap between your payroll platform and your General Ledger (GL), ensuring every penny of payroll liability is accounted for, reconciled, and completely audit-ready.
What is Payroll Liability Reconciliation?
Payroll liability reconciliation is the process of verifying that all tax withholdings, benefit contributions, and voluntary deductions withheld from employee paychecks—alongside employer match amounts—match what has actually been remitted to government tax authorities, insurance carriers, and retirement funds.
[ Payroll Processing ] ??? [ Tax & Benefit Withholdings ] ??? [ GL Clearing Accounts ] ??? [ Bank & Authority Remittance ] ? ( OBG RECONCILIATION AUDIT )
Without regular reconciliation, clearing accounts accumulate unresolved variances that distort your financial reporting and expose your business to compliance risks.
What We Reconcile for Your Business
Our expert accounting team meticulously audits and reconciles all components of your payroll liabilities:
1. Federal, State & Local Taxes
Withholdings: Employee Federal Income Tax, Social Security, Medicare (FICA), and State/Local Income Taxes.
Employer Contributions: FUTA, SUTA, and local payroll taxes.
Quarterly & Annual Match: Cross-checking GL liability balances against Form 941, Form 940, and state tax filings.
2. Benefits & Voluntary Deductions
Retirement Plans: 401(k), IRA, and pension employer matches vs. actual provider remittances.
Health & Life Insurance: Employee medical, dental, vision, and FSA/HSA deductions against carrier billing statements.
Garnishments & Court Orders: Child support, tax levies, and wage garnishments to ensure timely, compliant transfers.
3. Payroll Clearing & Net Pay Accounts
Bank Discrepancies: Matching net pay debits against bank statements to flag failed direct deposits, uncleared paper checks, or duplicate payments.
Journal Postings: Resolving unposted or misallocated payroll entries across departments and cost centers.
Our Step-by-Step Reconciliation Process
| Phase | Action Items | Client Benefit |
|---|---|---|
| 1. Data Extraction | Extract payroll register reports, bank feeds, tax filings, and GL liability accounts. | No manual effort required from your internal team. |
| 2. Variance Analysis | Compare withholdings vs. GL entries vs. actual remittances to identify over/under-fundings. | Uncover hidden errors and calculation drifts early. |
| 3. Discrepancy Resolution | Investigate root causes (e.g., misconfigured tax rates, late benefit updates) and adjust entries. | Prevent recurring payroll setup errors. |
| 4. Journal Entry & Balancing | Prepare and post precise adjusting journal entries to bring clearing accounts to zero balance. | Clean, transparent, and accurate General Ledger. |
| 5. Audit-Ready Reporting | Provide detailed reconciliation schedules and variance summaries for your CFO or external auditors. | Total visibility and hassle-free tax audit defense. |
Why Choose OBG Outsourcing Private Limited?
Software-Agnostic Expertise: We seamlessly work with top payroll platforms (ADP, Paychex, QuickBooks Payroll, Gusto, Workday) and accounting ERPs (NetSuite, QuickBooks Online, Xero, Sage).
Multi-Jurisdiction Compliance: Deep expertise handling complex US, Canadian, UAE, and global tax landscapes with multi-state tax setups.
Cost Efficiency: Eliminate the expense of hiring full-time internal payroll auditors by leveraging our dedicated BPO infrastructure.
Data Security First: Your sensitive employee compensation and company financial records are protected by strict security protocols and data encryption standards.
Stop Payroll Variances Before They Become Penalties
Partner with OBG Outsourcing Private Limited to ensure your general ledger reflects absolute truth.
Software We Use
