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  1. Salary Deduction
  • Welcome
  • Getting started
    • Availability and Onboarding
      • Light Availability Check
      • Full Availability Check
      • Onboarding
    • Salary Deduction
      • Deduction Instruction
      • Re-running Payroll
      • Deduction Payments and Reconciliation
      • Changes to Employee Status
  • API Reference
    • Authentication
    • Idempotency
    • Webhooks
      • Webhooks
    • Salary Deduction
      • Salary Deduction Data Request
      • Salary Deduction Confirmation Submission
  • Payroll Provider Reference Implementation
    • Light Availability Check
      POST
    • Full Availability Check
      POST
    • Salary Deduction Enablement
      POST
    • Payroll Information
      GET
    • Salary Deduction Employee Data Push
      POST
  • Schemas
    • Availability Check
      • Full Availability Check Request
      • Full Availability Check Response
      • Light Availability Check Request
      • Light Availability Check Response
    • Core
      • ProblemDetails
      • MetaData
      • Paged Response
    • Deduction Instructions
      • Salary Deduction Request
      • Salary Deduction
      • Confirmation Deduction Response
      • Salary Deduction Enablement Response
      • Employee Deduction Push Response
      • Employee Deduction Push Request
      • Salary Deduction Push
      • InstructionFile
      • InstructionItem
    • Payment Account
      • Payment Account
      • Payment Information
    • Payroll
      • Employee
      • Availability Payroll
      • Availability Employment
      • Availability Employer
      • BeneficiaryAccountResponse
      • Salary Deduction Confirmation Data Submission
      • Salary Deduction Confirmation Data Submission Response
      • Salary Deduction Data Request
      • Salary Deduction Data Response
      • Payroll
      • Employee Payroll
      • Employment
      • Employer
      • Pay Date
      • Salary Deduction Enablement Request
      • PayrollScheduleResponse
    • Webhooks
      • Employee Update Payload
      • WebHook
  1. Salary Deduction

Deduction Payments and Reconciliation

About Deduction Payments and Reconciliation#

On payday, the employer pays an aggregated amount of all the payrun’s Ontime deductions to Ontime. Ontime then reconciles and processes these funds.

Assumptions and prerequisites#

The Employer, or Outsourced Payment Processor, handles payments to the Employee and Ontime (i.e. the Payroll Provider is not responsible for Payroll remittance processes).
1

Payment instruction#

Requirements
The Employer instructs the payments to Ontime accounts for PayDate via the Payroll batch file.
Payment to Ontime is paid on pay day.
Payments are aggregated per the Partner's specified bank accounts.
Payment Information

2

Ontime Reconciliation#

Requirements
Ontime reconciles payments received against its immutable ledger.
Risk
Errors should only be caused by operational faults. Valid differences should already be flagged within the confirmation step of:
Deduction Instruction
Re-running Payroll
Control reporting will assist in managing valid differences.
3

Reconciliation Issues#

Requirements
Ontime notifies the Payroll Provider of differences; the Payroll Provider will engage with the Employer for resolution.
Considerations
Reconciliation differences between the Payroll Provider and the actual bank transactions MUST be addressed by the Employer.
Ontime does not have a direct relationship with the Employer. Therefore the communications should be between Payroll Provider and the Employer.
4

Exception Report#

Requirements
The Payroll Provider issues another exception report(s) (as per the step above).
Or:
New Payment: The Employer sends a delta payment to Ontime using the previous PayDate and Payment Reference.
Return Payment: Ontime makes a delta payment back to the Employer
5

Retry reconciliation#

Requirements
Ontime re-runs reconciliation
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Re-running Payroll
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Changes to Employee Status