The following are some frequently asked questions that we often encounter:
Why am I seeing a Payment Reconciliation amount in my payroll?
Why does Payment Reconciliation appear when I process my payment?
Do I need to include the reconciliation amount when exporting the bank file?
How Does Payment Reconciliation Work in Talenox?
Payment reconciliation is an automatic process in Talenox to handle:
Multiple payments in a single month (e.g. bi-weekly or ad-hoc payments)
Low monthly earnings, particularly when gross salary < RM750
Buffering statutory contributions in case of resignation mid-month
Talenox withholds up to 20% of an employee's net salary temporarily to ensure there's enough buffer to cover all employee-side statutory contributions (EPF, SOCSO, EIS) by month-end.
Withholding on early/monthly payments:
A maximum estimate of statutory deductions is withheld from each payment.
Reconciliation on final payment of the month:
The system recalculates the actual statutory deductions for the month.
Any excess withheld is refunded to the employee in the final payment.
Where Do I Go to see my Employee's Payment Reconciliation Amounts?
Payroll > Month Total > Make Payment
Navigate to the "Reconciliation Amounts" tab
Tick the "Include Reconciliation" box when preparing the final payout for the employee
How to include Payment Reconciliation in your Payments to Employees? (Bank Payment/Cheque/Cash)
1) Click on the drop-down arrow to view the payments you have processed.
Head over to “Select payment method >”
2) Choose “Bank Transfer/Cheque or Cash)"
Separated Payment Reconciliation based on Payment Type
The new payment flow also shows the Payment Reconciliation amounts separately under each payment method (Bank and Cheque payments) clearly.
How do my Employees Know that Statutory Withholding is Happening in their Payments?
When a buffer is withheld, the payslip shows:
"A portion of net salary was withheld to provide a buffer in case additional statutory contribution is required."
After reconciliation, the final payslip updates to reflect the full net pay.
Example Scenarios
Scenario 1: Multiple Payments in a Month
Employee: Ali
Paid RM2,500 on 10th June (partial salary)
Paid RM2,500 on 25th June (final salary)
Talenox action:
On 10th June: Withholds 20% (RM500) as buffer
On 25th June:
Calculates actual EPF/SOCSO/EIS: e.g., RM420
Refunds excess RM80 to Ali
Shows "Reconciliation" in Make Payment and payslip
Scenario 2: Salary < RM750
Employee: Siti
Gross salary for June: RM600
Talenox action:
System detects low earnings
Withholds max estimated statutory contributions (e.g., RM120)
If this is the only payment, no refund (all buffer is used for EPF/SOCSO/EIS)
If there's a top-up later, system reconciles and refunds excess
Scenario 3: Resignation Mid-Month
Employee: Kumar
Paid RM1,000 on 5th July
Resigned on 6th July
Talenox action:
Withholds statutory estimate (e.g., RM200)
No additional payment made
System retains buffer to ensure accurate submission of EPF/SOCSO/EIS despite early departure
Hope this helps with your Payment Reconciliation understanding in Talenox now!