What is involved with the reconciliation?
The reconciliation will compare the amounts that have been set aside as budgets versus the amounts they have actually spent. If there is a surplus this will be refunded to you, in order to withhold any tax and superannuation payable and then pass on only the net amount to the Employee. However, if there is a deficit, then the difference will be invoiced to you. The payment of the deficit will be made through you as the Employer in order to maximize the Employee’s tax benefits. You should withhold their final pay until the reconciliation is completed and any deficit has been paid.
