Off-cycle payroll

July 8, 2020
Alex DelVecchio

by 
Alex DelVecchio

Employees are not always paid on regular payroll cycles, and this may happen for many reasons. Here are a few of them:

  • An employee needs to be paid before their regular payday
  • An employee receives a bonus or commission not paid with their regular payday
  • The employer needs to pay a terminated employee
  • Corrections for underpayments to employees

Employers expect more configurability for these off-cycle payrolls, like the ability to choose to tax earnings as supplemental, or the ability to block the application of benefits or post-tax deductions. Check now supports configuring a Payroll resource's type to be regular (by default) or off_cycle.

By creating an off_cycle payroll, the payroll will be configured with reasonable defaults that can be overridden. The following options will be exposed in the off_cycle_options configuration object:

  • force_supplemental_withholding: this field tells Check how to calculate employee taxes. If set to true, Check will tax all earnings as supplemental earnings. If set to false, then Check will calculate taxes as it usually does, using the taxability of each earning type and the company's default pay frequency. By default, this field is set to false.
  • apply_benefits: by default false, this tells Check to apply benefit deductions and contributions to this payroll.
  • apply_post_tax_deductions: by default false, this tells Check to apply post tax deductions to this payroll.

Putting it all together, an off_cycle payroll object will look something like this:

With the elevation of off_cycle to a top-level concept on a payroll, you can now build off-cycle payroll features more easily into your products.

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