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Understanding all-manual payrolls

Understanding all-manual payrolls

Discover how to manage all-manual payrolls effectively while avoiding common pitfalls.

Overview

An all-manual payroll is a payroll where every employee and contractor on the payroll is being paid manually (i.e., where the payment_type is manual for every payment). In such cases, Check will not pay any net pay funds to employees and contractors, and Check will solely debit employers to fund associated tax liabilities and remit those tax funds to relevant tax agencies.

What makes all-manual payrolls unique?

Unlike regular payrolls, where the approval deadline is typically set one or more days before the payday, all-manual payrolls can be created and approved on the same day as payday. This is most helpful for allowing employers who forgot to run payroll to still calculate and run payroll on time, and pay employees by writing paper checks to employees and contractors.

However, to support this functionality, all-manual payrolls do have some unique quirks and limitations to be aware of:

  • All-manual payrolls with at least one employee will remain in a pending status until 8pm ET on the day of payday. This is expected behavior, and is no cause for concern. The status will move to paid early the next morning after the debit for the associated tax funds has been received.
  • If the all-manual payroll only includes contractors, the status will move to directly to paid. This is because there are no tax funds that need to be debited).
  • If the all-manual payroll is a three-day payroll, it is possible that some tax payments will be paid late. Check will delay tax payments until the return window for the debit has cleared, which is three (3) business days after the debit is sent. Because it’s possible that some tax payments will be due as soon as the day after the payday, then waiting for the debit return window to close may result in late payments.
    • This is indicated in a warning on the payroll in the API, if the payroll has a three-day processing period and is all-manual.
    • If the company is approved for accelerated processing and the all-manual payroll is a two- or next-day payroll, then Check will process the tax payments immediately on receipt of the debit, instead of waiting for the return window to close.
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Last updated on September 30, 2024

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