August 7, 2025
Implement new payroll wire funding changes and understand updated tax descriptions for better clarity.
Changes to Funding Payrolls by Wire
We have made several changes to processing timing and statuses for payrolls that are funded by wire:
- The approval deadline for all payrolls funded by wire is now 4pm ET on payday, updated from 5pm ET the day before payday. This allows you the ability to create and approve payrolls with same-day payments if they are funded via wire. Note: if a wire payment is received by 5pm ET the day before payday, payments settle in employees’ bank accounts on the morning of payday; otherwise, they will settle by 6pm ET on payday.
- Payrolls funded by wire will remain in a “pending” status until the wire is received, rather than transition immediately into “processing.” This means they can be reopened until the wire is received.
- Payrolls funded by wire will move to a “failed” status if the wire is not received by the approval deadline. This does not create a failed funding strike for the employer, but will prevent the approval of additional payrolls until the payroll is funded or voided.
- An updated fund by wire modal allows you to select a payday for payrolls funded by wire before approving payrolls.
These changes offer partners and employers greater flexibility and clarity when processing payrolls funded by wire. For more information about funding payrolls by wire, refer to our Fund by Wire guide.
FICA Renamed to Social Security in Sandbox
FICA and Employer FICA taxes have been renamed to “Social Security Tax” and “Employer Social Security Tax” in Sandbox, effective today. These taxes will be renamed in production next Thursday, August 14th.
Please ensure that your customers are aware that this change is being made, as these taxes will begin appearing under the updated descriptions on paystubs and other reporting. In addition, please ensure that your integration with Check API is not directly dependent on tax descriptions, as tax descriptions such as these are subject to change.
New “Non-Taxable Fringe” Benefit Type
We have added support for a new benefit type called “nontaxable_fringe” to the Benefits API (see Types of Benefits).
This generic benefit type is intended to capture any various miscellaneous fringe benefits that are not subject to Federal Income Tax withholding, FICA, or FUTA taxes, and are excluded from an employee’s gross wages. These benefits are also not reported on the employee’s W-2; however, some employers may want to include them in payrolls and on employees’ paystubs. Some examples of non-taxable fringe benefits include:
- Cost of group term life insurance up to $50,000
- Education assistance up to the IRS limit
- Various working condition fringe benefits (e.g., office equipment, supplies, etc.)
Refer to IRS Publication 15-B for more details about fringe benefits and their taxability.