Off-cycle payroll is the process of issuing paychecks to your employees outside of your regular pay schedule.
If your organization is like most organizations, your employees get paid on a fixed schedule, such as biweekly or monthly.
However, there are situations where an employee needs to get paid outside of this regular schedule.
For instance, if you hire a new employee between regular pay periods, you might need an off-cycle payroll to ensure that that employee gets their first salary.
Also, if your organization offers special bonuses outside the regular bonus cycle, an off-cycle payroll helps to efficiently distribute these extra compensations.
Overall, off-cycle payroll is a way to help your organization handle unique payroll situations that fall outside of the regular payroll schedule so that your employees receive their compensation in a timely and stress-free manner.
Differences between off-cycle payroll and regular payroll
Off-cycle payroll and regular payroll differ in the following ways:
- Timing
- Purpose
- Frequency
- Processing complexity
- Documentation and record-keeping
What are the reasons for off-cycle payroll?
There are different reasons why you might need to run an off-cycle payroll. Some of the common ones we've come across are:
- You have to pay a dismissed employee's severance pay.
- You have to reimburse an employee.
- You have to give your sales team their commissions.
- You have to make additional payments that were missed during the regular payroll cycle.
- You want to pay an employee that requested an advance.
- You have to pay freelance workers or contract staff.
- You have to correct a payroll error made during a previous payroll run.
How to process off-cycle payroll with PaidHR (formerly Pade HCM)
Here's how to create your off-cycle payroll.
Log into your PaidHR account and click on Settings from the sidebar menu. Then click on HR & Payroll.
Scroll down to the HR section and click on the View button next to Pay Schedules.
Click on Off-cycle. Then you click on Create new schedule.
On the form that comes up, fill out the correct information in the fields. When you finish, click on Next and your off-cycle payroll will be created.
Recommended posts:?