Reconciliation Payrolls 101

Answers to the most common questions about Reconciliation Payrolls with Fuse.

What are Reconciliation Payrolls?

Reconciliation Payrolls are designed to catch any type of variance in the tax amounts for each employee and make adjustments to their taxes to ensure they are correct both Quarter-To-Date (QTD) and Year-To-Date (YTD). 

Predominantly, this type of payroll is used when your company has a tax rate change, i.e. State Unemployment Insurance (SUI) taxes, and you need to recalculate the payrolls that have been previously finalized in the Quarter to reflect the correct tax amounts.  Depending on whether your tax rate increases or decreases, Fuse will then adjust the amount of your tax liabilities by either collecting the additional tax due or refunding the amount of extra tax that was previously collected at a higher tax rate.

Fuse processes Reconciliation Payrolls as soon as we receive a tax rate change for any one of your company's payroll tax agencies throughout each Quarter.  If tax recalculations are needed for any other reason, our system will prepare a Reconciliation Payroll at the end of each Quarter to catch and fix these tax variances.

What are the fees associated with Reconciliation Payrolls?

Our standard fees for Recon Payrolls are:

$200 base charge plus $4 per pay statement

What can our company do to help?

To best partner with Fuse to ensure the accurate and timely payments and filing of your company's payroll taxes, we suggest the following:

  • We ask that you provide Fuse with your updated Tax Rates from each agency at least 2 weeks prior to the effective date of the change.
  • We suggest that you are proactive in requesting and/or obtaining these Notices from each agency.
  • We suggest that the Tax Overrides Advanced utility should be used sparingly, and only for Federal or State income tax amounts if at all possible.