To make payroll billing as smooth as possible, we follow a two-step process:
1. Estimated billing
At the start of each month, we invoice an estimated payroll cost based on the information available at that time.
2. Reconciliation (Regularization)
Once payroll has been finalized and actual amounts are confirmed, we compare the estimate with the final payroll. Any difference is then adjusted in the following month’s invoice.
This adjustment is called a regularization.
What does a regularization mean?
A regularization simply ensures that you are billed accurately based on the final payroll figures.
A positive amount means the initial estimate was lower than the actual payroll (an additional amount is due)
A negative amount means the estimate was higher than the actual payroll (a credit is applied)
Example
If last-minute changes are made, such as updates to an employee’s commission or expense claims, the final payroll cost may differ from the original estimate. This difference will appear as a regularization in the next invoice.
You can view these adjustments at an employee level in your payroll reports.
