Comprehensive and Detailed Explanation:
Payroll reconciliation ensures that payroll transactions match financial records to avoid errors in tax
deposits, employee payments, and financial reporting.
The correct answer includes all necessary reconciliation points:
Accounts payable payments (ensure wages were paid)
End-of-the-month balances (cross-check payroll liabilities)
General ledger entries (confirm correct postings)
Payroll register (check against wage statements)
Option A is incorrect because payroll must also be reconciled with accounts payable and monthly
balances.
Option B & C are incorrect because they exclude payroll register validation.
Reference:
Payroll.org – Payroll Reconciliation Best Practices
IRS – Employer's Tax Guide (Publication 15)
