Cloud Payroll: 2-Day Payroll Speed, Reversals, & Bank Errors

2-Day Payroll speed

Qualifications and approval process:

1. Semi-Monthly Pay Schedule:
   
1.  Have at least two successful paid payrolls over $0.
   
2. Have no failed payroll payments during the last year.
   
2. Weekly Pay Schedule:
   
1. Have at least three successful paid payrolls over $0.
   
2. Have no failed payroll payments during the last year.
   

Once a tenant is eligible for 2-day, a notification will be pushed to the Cloud Payroll notifications. To inquire about turning on 2-day processing speed, please submit a request to the Support Team and they will initiate the Approval process.

Important notes regarding eligibility:

1. All requests require analysis and a background check to be approved.
   
2. If approved, a credit limit will be determined - each submitted payroll is required to be under that threshold.
   
3. Eligibility does not mean 2-day is already approved.
   

Using 2 Day Payroll:

1. 2-day payment speed refers to two business days.
2. A read-only setting for Payment Speed will be set to 2-day, but is visible to all users. The Credit Limit is also in read only mode in Payroll, General Settings. A Support Team rep will coordinate with the tenant's Admin for when this change is made.
   

Credit Limit:

1. After approval, a read-only setting for Credit Limit will be shown in the Payroll General Settings.
   
2. The Credit Limit represents the aggregate payroll amount a tenant can process within a 24-hour period (12:00 AM - 11:59 PM).
3. In the event that a 2-day payroll exceeds the credit limit, a notification will appear and the user has the options to:
1. Contact the Support Team to request an increase to the credit limit.
2. Opt to run the payroll as 4-day instead of 2-day, which is not subject to credit limits.
   
3. Pay employees by check, which is not subject to credit limits.
4. Submit the payroll for an amount within the limit and submit a bonus payroll the next day (after the 24-hour period) for the additional amount.
   

Important notes:

1. If you go over your 24 hour Credit Limit you will be in danger of not making the deadline for direct deposit. Please monitor your aggregate payroll amount within each 24 hour period. 
   
2. If you hire more employees - please request a higher credit limit with the Support Team. 

Bank Errors:

In the event of bank errors, such as insufficient funds in the bank account, a Recovery Case is created, which will post a notification explaining the bank error received and how to correct it.

1. Another debit will be automatically re-attempted within the next business day, and if the second attempt is successful, no further action is required.
   
2. If the re-debit is unsuccessful, a third attempt will not be made and the user should follow the steps in the Recovery Case. Payroll will be blocked until the funds are successfully withdrawn.
   
3. In the Cloud Payroll list, the failed payroll will have a status of Payment Failed.
   

Please note: Repeated bank failures will result in a Probationary period enacted by Gusto and removal of 2 Day processing speed. It may also result in extreme cased to be remove from payroll altogether from Gusto. See reference material here: https://docs.gusto.com/embedded-payroll/docs/recovery-cases-1

Payroll Reversals

Full reversals:

1. Include bank errors that occur after the payroll is debited.
   
2. The payroll will be automatically be reversed on a 4-day ACH processing speed.
   

Partial reversals:

1. Occur when a user submits a support request to cancel or revert a portion of the payroll payment.
   
2. The company may give this directive to the Support Team via a help request.
   

Important Reference Links from Gusto: 

https://docs.gusto.com/embedded-payroll/docs/2-day-vs-4-day

1. A/R and A/P Aging Reports: The Accounts Payable Aging and Accounts Receivable Aging Reports now display the age of the Bill or Invoice, respectively, on the report.