Know what you hold, and what you owe. Every day.
First the bank is reconciled to your payroll tax ledger. Then that reconciled balance is checked against every dollar still owed to an agency. Most teams do the first one monthly and the second one never.
Every bank account, reconciled to the penny.
Rebuilt from the product with example figures. Click through it.
Connect each account once and tag what it’s for: tax accounts that hold impounds, and sweep accounts that back them. Every account shows its statement balance, when it was last reconciled, and what’s still pending.
Three blocks on one screen: what Tax Pilot says the account holds, what the bank says, and what’s owed against it. The two balances have to match before the period can be finalized, and any difference against liabilities is approved before it closes.
This figure is a residual, not a balance. Read it as a sentence: here is where the account stands against what it owes today, here is what is already on its way in, and here is where it lands once that arrives.
Where the account stands todayMoney in flight settles on its own: the next draft, remittance or credit application clears it. Nothing here needs action unless the final figure is a shortfall.
Every difference explains itself, in a sentence: where the account stands against what it owes today, what’s already on its way, and where it lands once that arrives.
Every number opens to the transactions behind it, down to the tax codes and the agency that was paid.
What it catches.
Common questions.
What is three-way payroll tax reconciliation?
Two reconciliations, run daily. The bank is reconciled against the payroll tax ledger, which gives you a reconciled bank balance. That balance is then compared against the total payroll tax liability still owed across every company and agency. When the two don’t agree you are holding either a shortfall or a surplus, and the platform tells you which the day it appears.
How is this different from bank reconciliation in our accounting system?
Accounting reconciliation ties the bank to your books. We do the same thing, then take it a step further: Pay and File is itself a set of books, specific to payroll tax, with every liability rolling through it. So the reconciled bank balance gets compared to the total tax liability owed, by company and by jurisdiction. That second step is the one almost nobody runs.
Why does our tax report show a balance nobody can explain?
Usually because the balance comes from the tax system’s own records rather than the bank. Without a bank leg, a report can show funds as held that never arrived, or paid twice. The platform matches every balance to bank activity daily, so a balance always traces back to transactions.
Do you need access to our bank accounts?
Read access, yes. Most accounts connect through Plaid, so transactions and balances come in daily, and bank (BAI) files work too. Where the money sits doesn’t change: impounds can keep landing in your own bank account. A separate account used only for payroll tax keeps the matching clean.
What happens when something doesn’t reconcile?
The platform matches bank activity automatically only when it’s certain. Anything else, like a wire bundled with fees, goes to a no-match list for your team to map or clear. If a company’s funds haven’t cleared, that company’s agency payments hold until they do.
How do you avoid paying taxes for a company whose funds bounced?
Collections stay pending until they clear the bank, and agency payments against them hold. A returned debit puts that company’s payments on hold until it’s resolved. Releasing a hold early, for a company that wires the money, is limited to users with permission.
Does this work if we aren’t using you for filing?
Yes. Collection, remittance and filing can each be switched on or off for a company, and reconciliation runs either way. It does need the payroll and tax detail in the platform to reconcile against, so it starts with connecting your payroll system.
Can we export transactions to our general ledger?
Yes. Tax payment and collection activity runs as a report and downloads as CSV, ready to load into your general ledger. There’s no direct accounting-system integration today.
Ready to take this off the list?
Somebody on your team is reconciling this by hand today. Close the triangle and that work stops existing. The person doesn’t.