Human Resources: Payroll Deductions Reconciliation Solution


At most large companies, a complex set of rules govern the options for payroll deductions associated with each paycheck. Allowable benefits and deductions can change based on, among other things, job function, exempt/non-exempt status, tenure, previous employment, marital and family status, and spousal employment. These rules are typically defined in the company's employee manual and/or benefits guide.


A preliminary review of client's payroll had determined that there were discrepancies between payroll deductions and the associated benefits coverage for which each employee was paying. The challenge was to conduct a more detailed review and develop a method of reconciling pay amounts for over 10,000 employees.


ADC consultants reviewed current and past HR rules with the client's HR team. ADC consultants reviewed and audited payroll records for 10,000+ employees for a time period of several years. Our team identified discrepancies, categorized them, and managed the communication to each individual employee. Given the complexity of the compensation and benefit plans, an automated audit function was created to immediately report when payroll was out of audit compliance.


ADC and the client's HR team worked through an organized and well documented process to resolve all outstanding issues. All employee paychecks were corrected, required adjustments made, and each employee was provided with needed supporting documentation to ensure confidence in payroll calculations going forward.