Why payroll reconciliation rules?
During the payroll process, there are sometimes differences between success files and deduction files. Historically, when a discrepancy was detected, payroll disbursement was halted until the discrepancies were fixed.
The new payroll reconciliation process eliminates the need to hold up the payroll disbursement schedule for all clients and instead applies a set of pre-determined “rules” to streamline the process.
What’s the benefit?
This new process will:
- reduce the need for back-and-forth communications each payroll period
- ensure that your employees’ donations get to the recipient organizations in a timely manner
- reduce the administrative work for CSR professionals and payroll teams
- provide a better end-user experience through automated notifications of changes to their payroll donations
- provide us with the ability to commit your payroll consistently each and every time
Here’s how it works
There are two rules that can be set to determine what action to take when a donor’s payroll deduction is over or under the amount requested in Spark.
When it’s under:
The donation amount is prorated to be lower to all recipient charities — this rule will be applied to every client that has adopted the new payroll reconciliation process.
When it’s over:
Overages can occur from time to time based on the funds available, the amounts committed, or even the payroll date itself. The most common cause of an overage is simply to account for a shortage from the previous payroll period. Overages can be automatically corrected in the next payroll period by applying either “Over Option” described below.
Depending on your program guidelines, there are two overage options. Option 1 delivers the leftover money back to the user’s Giving Account—this is what we recommend!
Over Rule: Option 1 - The excess amount is placed into a users’ Giving Account (recommended)
Over Rule: Option 2 - The donation amount is prorated to be higher to all recipient charities
An email will be sent to any affected users notifying them of the adjustment to their donation(s). If you prefer not to have notifications for your users, please tell your Benevity Client Success Manager.
I’m in, what’s next? Talk to your Client Success Manager and let them know.
- Who at your company should be notified when a payroll period is modified.
- Which option you’ve selected for overages.