How are payroll postings to the General Ledger created and reconciled?

• A. GL postings are performed manually without review
• B. There are no GL postings
• C. GL postings are generated automatically with no reconciliation
• D. Payroll results are posted as GL journal entries; reconciliation compares totals to GL accounts and adjusts as needed

Answer: (D)

Payroll results flow into the General Ledger by generating journal entries automatically from the calculated payroll data, using the configured account mappings for earnings, deductions, taxes, and employer costs. This automated posting provides a precise, auditable record of payroll activity in the GL without requiring manual entry.

Reconciliation then ensures those posted amounts align with the GL balances. It involves comparing payroll totals—such as gross payroll, net pay, deductions, and employer contributions—to the corresponding GL accounts and subaccounts, and checking that debits and credits balance. If any discrepancies arise due to mapping, timing, or data issues, adjustments or correcting entries are made so the GL accurately reflects the payroll activity.