A payroll transfer difference should be reconciled to approved net pay and actual bank evidence before another payment is made. Check whether the difference concerns an employee, the bank batch total, a rejected transfer or a separate payroll adjustment. Do not alter the approved payroll merely to make it match the bank statement.

Accounting records, calculator and glasses on a desk
Illustrative photograph by Cht Gsml.

Define the comparison

Use the approved payroll version for the relevant pay period. Separate gross pay, deductions, employer costs and net amounts payable. The bank transfer total normally needs to be compared with the intended payment amounts, not with an unrelated gross-pay or employer-cost figure.

Record which account funded the batch and whether all intended transfers appear. A payment instruction file is evidence of instructions, not proof that every beneficiary received money. Keep the bank’s accepted, rejected or returned transaction evidence where available.

Trace differences by employee

Use a restricted reconciliation that identifies the employee reference, expected net payment, actual payment and unresolved amount. Avoid circulating a full salary list to staff who only need to investigate one bank exception. Check for duplicated lines, omitted employees and transfers made outside the main batch.

Example: one transfer is returned

The bank debits a payroll batch but later returns one transfer because the account details are invalid. Keep the initial debit and return connected. Confirm the employee’s corrected details through the authorised process before arranging a replacement payment, and check that it will not duplicate an already successful transfer.

Authorise corrections separately

Any payroll recalculation should have its own explanation and approval. Any additional payment should also be approved and linked to the reconciliation. Ask the payroll adviser whether an underlying pay change affects payslips, CPF or other reporting; a bank correction alone does not answer those questions.

Retain the resolved reconciliation

Close each exception with supporting evidence and reviewer confirmation. Leave genuine outstanding items visible. IRAS requires records that explain business transactions, so retain the approved payroll and payment trail rather than only a bank total.

Related practical guidance

For the surrounding records and responsibilities, see bookkeeping basics, company records to keep, bookkeeping and accounting.

Official guidance: IRAS official guidance.

Help with your company records

For accounting, bookkeeping and related compliance support, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133. Tell us which records or process need attention so we can discuss the relevant next steps.