AI PEO Payroll Reconciliation Agent

How Cassidy automates payroll, benefits, tax, and workers' comp reconciliation using AI

Step 1: Trigger on pay cycle or billing schedule

The Workflow activates automatically based on each client's pay period close or monthly PEO billing cycle, ensuring reconciliation runs at the right cadence across your entire client portfolio.

Step 2: Ingest and normalize source data

Cassidy pulls payroll registers, PEO consolidated invoices, carrier premium bills, and bank debit confirmations via API, SFTP, or file upload—then normalizes all artifacts to a canonical data model with standardized earning codes, tax items, and benefit plan identifiers.

Step 3: Map codes and enrich dimensions

The Workflow translates PEO-specific codes to each client's chart of accounts, allocates wages and benefits across departments, classes, locations, and projects based on labor distribution rules, and calculates fully burdened costs including employer taxes and fringe loads.

Step 4: Run parallel reconciliation engines

Cassidy simultaneously reconciles payroll-to-invoice totals (gross-to-net, admin fees, taxes, WC), ties benefit deductions and employer contributions to carrier premiums by plan and tier, validates tax accruals against PEO remittances, and computes workers' comp exposure against invoiced premiums.

Step 5: Classify variances and route exceptions

AI auto-categorizes discrepancies—rate mismatches, timing lags, headcount deltas, mapping drift—and resolves sub-threshold items automatically. Material exceptions route to the appropriate queue (Benefits Ops, Payroll Tax, WC, Client Accounting) with attached evidence artifacts.

Step 6: Generate and post balanced journal entries

Cassidy builds GL entries per client entity with configurable summarization and periodization, posts directly to QuickBooks, NetSuite, Sage Intacct, or Xero via API, and returns posting confirmations with document numbers.

Step 7: Produce client deliverables and close documentation

The Workflow outputs client-facing invoice breakdowns with line-item allocations, variance explanations, and MoM change summaries—plus compliance-ready audit packs for 941/940 tie-outs, SUTA schedules, and WC audit support.