Payment reconciliation (CPF withholding) is a preventive measure in Talenox to ensure CPF contributions for employees (Singapore Citizens and Permanent Residents) and SHG contributions (where applicable) are always set aside from each payment created.
Reconciliation was designed for employees on weekly or more than once pay day in a month with less than $750.00 of salary. We withhold the maximum amount of CPF for employee contribution to ensure that when such employees resign, there will be enough buffer for CPF contribution.
We help employers avoid a situation where salary is paid out fully in parts with insufficient balance to contribute the month end employee's portion of CPF. Having to claw back paid out salary from the employee can be unduly troublesome.
This is especially helpful for employers who make multiple payouts for employees in a month, more commonly pertaining to hourly-rated part-time staff.
If you strictly make payments only once a month, always remember to process the CPF total for the month and refer to the Payroll & CPF summaries for the final calculation of net salary payable, together with respective contributions.
Any amount that is withheld in excess after the month total processing is done will be reflected under Make Payment > Withholding Amounts (B).
How to include Payment Reconciliation in the Bank File?
If you are processing payroll on a monthly basis, you can ignore the reconciliation amount.
Under Bank File (Advanced Settings) > Withholding Amounts (B), when you export bank file, do ensure that "Include withheld?" box is checked (default setting). 😄