What reconciliations and checks do you do before releasing payroll to the bank?
What the interviewer wants to hear
- Headcount reconciliation with HR: joiners, leavers, active employees
- Month-on-month variance by employee and in total
- Exception reports: negative or zero pay, large changes, missing bank details, duplicates
- Statutory totals check: PF, ESI, PT, TDS
- Bank file total equals approved net pay
Model answer
I start with headcount: last month count plus joiners minus leavers should equal this month count in payroll, and match the HR system. Then I do a month-on-month variance, in total and by department, and explain each movement: joiners, leavers, increments, LOP, arrears, bonuses. Anything unexplained is investigated. I run exception reports for negative or zero net pay, changes above a threshold such as 20%, missing or duplicate bank accounts, employees on long leave being paid in full, and anyone paid after their exit date. I check statutory totals: PF and ESI against the wage base, professional tax by state, and TDS compared with last month. Finally I make sure the bank file total and record count exactly match the approved payroll register, and that the file is sent through the secure bank channel only after sign-off.
Can you answer it under time pressure?
Take a timed medium round and get scored on every answer.
More medium Payroll Specialist questions
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- Explain when an employee in India is eligible for gratuity and how it is calculated.
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- How do you manage monthly and quarterly statutory payments and returns for payroll in India?