Payroll GL Reconciliation

Reconcile payroll processor reports (Gusto, ADP, Paychex, Rippling) to general ledger journal entries in QuickBooks Online, Xero, or other accounting software. Automates journal entry creation from payroll summaries, validates wage/tax/benefit allocations to correct GL accounts, detects variances, and flags discrepancies before month-end close. Produces audit-ready reconciliation workpapers. Use when: reconciling payroll registers to GL, mapping payroll processor exports to chart of accounts, creating payroll journal entries, validating employee benefit deductions, or preparing payroll workpapers. NOT for: payroll processing or running payroll (use your payroll platform), tax filing (W-2, 941), on-chain payroll (use on-chain-payroll), HR onboarding, or benefits enrollment.

# Payroll GL Reconciliation Skill

Reconcile payroll processor reports to general ledger journal entries. Automate journal entry creation, validate account mappings, detect variances, and produce audit-ready workpapers — all from raw payroll exports.

---

## When to Use This Skill

**Trigger phrases:**
- "Reconcile payroll to the GL"
- "Create journal entries for payroll"
- "Payroll didn't hit the right accounts"
- "Map Gusto export to QuickBooks"
- "Check payroll entries for month-end close"
- "Payroll reconciliation workpaper"
- "Validate payroll tax liabilities"

**NOT for:**
- Running or processing payroll — use Gusto, ADP, or Paychex directly
- Filing 941/940/W-2 — use a tax compliance workflow
- On-chain payroll disbursement — use on-chain-payroll skill (PTIN-backed, not here)
- Benefits enrollment or HR workflows — out of scope
- Actual QuickBooks data entry — use `qbo-automation` for live API writes

---

## Payroll GL Reconciliation Overview

Every payroll run produces three categories of GL impact:

```
1. GROSS WAGES EXPENSE (Debit)
   ├── Regular wages
   ├── Overtime wages
   ├── Bonus / commissions
   └── PTO / sick pay

2. EMPLOYER PAYROLL TAXES EXPENSE (Debit)
   ├── Employer FICA (Social Security 6.2%)
   ├── Employer Medicare (1.45%)
   ├── Federal Unemployment (FUTA 0.6%)
   └── State Unemployment (SUTA — rate varies by state)

3. LIABILITY ACCOUNTS (Credit)
   ├── Net pay payable (cash out → employee bank accounts)
   ├── Employee FICA withheld
   ├── Employee Medicare withheld
   ├── Federal income tax withheld
   ├── State income tax withheld
   ├── Employee benefits deductions (health, dental, 401k)
   └── Employer benefits contributions (401k match, HSA)
```

**The fundamental check:**
```
Total Debits = Gross Wages + Employer Taxes + Employer Benefits
Total Credits = Net Pay + All Withholdings + All Liabilities

Debits must equal Credits. If not, there's an error.
```

---

## Standard Chart of Accounts Mapping

### Expense Accounts (Debits)

| Payroll Line Item | GL Account | Account Type |
|---|---|---|
| Regular wages | 6100 – Salaries & Wages Expense | Expense |
| Overtime pay | 6100 – Salaries & Wages Expense | Expense |
| Bonus / commissions | 6110 – Bonus Expense | Expense |
| Employer FICA | 6200 – Payroll Tax Expense | Expense |
| Employer Medicare | 6200 – Payroll Tax Expense | Expense |
| FUTA | 6210 – Federal Unemployment Tax Expense | Expense |
| SUTA | 6220 – State Unemployment Tax Expense | Expense |
| Employer 401(k) match | 6300 – Employee Benefits Expense | Expense |
| Employer health premium | 6310 – Health Insurance Expense | Expense |
| Employer HSA contribution | 6320 – HSA Contribution Expense | Expense |

### Liability Accounts (Credits)

| Payroll Line Item | GL Account | Account Type |
|---|---|---|
| Net pay to employees | 2000 – Net Payroll Payable | Current Liability |
| Employee FICA withheld | 2100 – FICA Payable | Current Liability |
| Employee Medicare withheld | 2110 – Medicare Payable | Current Liability |
| Federal income tax withheld | 2120 – Federal Withholding Payable | Current Liability |
| State income tax withheld | 2130 – State Withholding Payable | Current Liability |
| Employee 401(k) deduction | 2200 – 401(k) Payable | Current Liability |
| Employee health deduction | 2210 – Health Insurance Payable | Current Liability |
| Employer FICA (matching) | 2100 – FICA Payable | Current Liability |
| Employer Medicare (matching) | 2110 – Medicare Payable | Current Liability |

> **Note:** When taxes are remitted to the IRS/state, debit the liability account and credit cash.

---

## Department / Cost Center Allocation

For multi-department businesses, allocate wages by department:

```
6100 – Wages Expense (Engineering)    [Debit]    $45,000
6100 – Wages Expense (Sales)          [Debit]    $30,000
6100 – Wages Expense (G&A)            [Debit]    $25,000
```

**Allocation methods:**
1. **Direct mapping** — each employee assigned a department in payroll system
2. **Headcount ratio** — allocate shared costs proportionally
3. **Time tracking** — allocate based on logged hours per project/department
4. **Revenue ratio** — allocate shared overhead by revenue contribution

---

## Processor-Specific Export Formats

### Gusto

Gusto provides a "Payroll Journal" CSV export under Reports → Journal Entries.

```python
import csv
from dataclasses import dataclass
from typing import List

@dataclass
class GustoPayrollLine:
    pay_date: str
    employee_name: str
    department: str
    gross_wages: float
    employee_fica: float
    employee_medicare: float
    federal_withholding: float
    state_withholding: float
    employee_401k: float
    employee_health: float
    net_pay: float
    employer_fica: float
    employer_medicare: float
    futa: float
    suta: float
    employer_401k: float
    employer_health: float

def parse_gusto_export(filepath: str) -> List[GustoPayrollLine]:
    """
    Parse Gusto payroll journal CSV into structured records.
    
    Gusto columns (may vary by plan):
    'Check Date', 'Employee Name', 'Department', 'Gross Pay',
    'Employee OASDI', 'Employee Medicare', 'Federal WH', 'State WH',
    '401k Employee', 'Medical Employee', 'Net Pay',
    'Employer OASDI', 'Employer Medicare', 'FUTA', 'SUTA',
    '401k Employer', 'Medical Employer'
    """
    lines = []
    with open(filepath, 'r') as f:
        reader = csv.DictReader(f)
        for row in reader:
            lines.append(GustoPayrollLine(
                pay_date=row.get('Check Date', ''),
                employee_name=row.get('Employee Name', ''),
                department=row.get('Department', 'General'),
                gross_wages=float(row.get('Gross Pay', 0) or 0),
                employee_fica=float(row.get('Employee OASDI', 0) or 0),
                employee_medicare=float(row.get('Employee Medicare', 0) or 0),
                federal_withholding=float(row.get('Federal WH', 0) or 0),
                state_withholding=float(row.get('State WH', 0) or 0),
                employee_401k=float(row.get('401k Employee', 0) or 0),
                employee_health=float(row.get('Medical Employee', 0) or 0),
                net_pay=float(row.get('Net Pay', 0) or 0),
                employer_fica=float(row.get('Employer OASDI', 0) or 0),
                employer_medicare=float(row.get('Employer Medicare', 0) or 0),
                futa=float(row.get('FUTA', 0) or 0),
                suta=float(row.get('SUTA', 0) or 0),
                employer_401k=float(row.get('401k Employer', 0) or 0),
                employer_health=float(row.get('Medical Employer', 0) or 0),
            ))
    return lines
```

### ADP

ADP exports vary by product (RUN, Workforce Now, TotalSource). Request the "Payroll Register" + "Tax Summary" reports.

```python
def parse_adp_register(filepath: str) -> dict:
    """
    Parse ADP payroll register. ADP uses fixed-width or pipe-delimited format.
    
    Key ADP column names:
    'Employee Name', 'Reg Hours', 'Reg Earn', 'OT Earn', 'Gross',
    'FIT', 'SIT', 'SS EE', 'MED EE', 'SS ER', 'MED ER',
    '401K EE', '401K ER', 'Medical EE', 'Medical ER',
    'Net Pay', 'FUTA', 'SUI'
    """
    # ADP format detection
    with open(filepath, 'r') as f:
        header = f.readline()
    
    delimiter = '|' if '|' in header else ','
    # ... parse with detected delimiter
    pass
```

### Paychex

```python
def parse_paychex_summary(filepath: str) -> dict:
    """
    Paychex Payroll Summary Report.
    Download from: My Paychex → Reports → Payroll Summary
    
    Key sections in Paychex report:
    - 'Earnings' block: Regular, Overtime, Bonus
    - 'Employee Deductions' block: FIT, SIT, FICA, Medicare, Benefits
    - 'Employer Taxes' block: FUTA, SUTA, FICA ER, Medicare ER
    - 'Employer Benefits': 401k Match, Health ER
    - 'Check Summary': Net Pay total
    """
    pass
```

---

## Journal Entry Builder

```python
from dataclasses import dataclass, field
from typing import List
from dec