The best way to keep your employees happy and your business thriving is by consistently paying your employees on time. In order to achieve this, you have to understand when your payroll provider requires your payroll to be submitted. Every payroll vendor has different deadlines on when you need to submit your payroll for timely processing. Understanding the importance of the lead time your vendor requires is essential to keeping your employees paid and productive.
When does Paper Trails require payroll to be submitted?
For clients of Paper Trails, payroll needs to be submitted by noon time two business days before pay day. For example, payroll must be provided to us no later than noon on Wednesday for a Friday pay day. Payrolls submitted after this deadline will be pushed to the next business day.
Why does payroll need to be submitted two days prior?
There are a few reasons Paper Trails has a lead time of two business days prior to pay day.
First, the noontime deadline ensures that there is adequate time to make any necessary adjustments before bank deadlines pass for the day. Once bank deadlines have passed, any adjustments would have to be moved to the next business day. This could result in your employees not receiving their paycheck on the correct pay day.
Secondly, Paper Trails requires a two day lead time because the total payroll amount is pulled from your bank account on the day after it is submitted to us. For example, for a Friday pay day, funds are pulled from your bank on Thursday. This extra day in between provides you the time to make sure the necessary funds are available in your bank account and you do not bounce a payroll on payday. Bounced payrolls will result in penalties to your business.
Lastly, the extra time between when payroll is submitted and pay day allows sufficient time for any live checks to be processed and mailed to your business in time for pay day.
Please let us know if you have any questions regarding this two day lead time or if we can help your business with its’ payroll process!