Consolidated Statement

Meaning & Definition

The combined summary of all related records into one document is called the Consolidated Statement. In HR and Payroll, it typically refers to a document to help HR and payroll departments have an easier time reviewing employee pay; it will generally include the employee’s pay rate and the amount they earned, deduction amounts (if any), benefit contributions or attendance records and any statutory contribution amounts for each pay period.

Importance of Consolidated Statement

• Multiple HR or payroll details can be viewed in one place. 
• Employees have a simpler way to review their salaries, taxes, and deductions. 
• HR and finance teams use this information to produce accurate financial reports and settle their accounts. 
• Errors due to using multiple statements will be reduced, and the transparency of an employee’s compensation will improve.

Compliance & Policy Considerations

• The information that will be included in these financial statements will be based on the internal policies and procedures of our payroll and reporting functions. 
• The financial statements will support maintaining an accurate set of records for audit and review purposes.
• The information included will be based on approved salary schedules, attendance records, and deduction policies.
• There are no statutory requirements associated with the use of this term.

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