Running payroll

The run cycle from preview to funding, what to check before approving, off-cycle runs, and what to do when something is wrong after approval.

How-toFor Business owners, Bookkeepers, Firm staff

The run cycle

1
Open the next run from the Payroll Center.
The dashboard shows the next pay run, its check date, and any action items that could block it or the filings that follow.
2
Clear action items first.
Incomplete employee records, unverified banking, missing tax registration. These block the run, and finding them at the deadline is avoidable.
3
Enter hours, overtime, and any additions or deductions.
4
Review the preview.
Gross, taxes, deductions, net per person, and the total cash required including employer taxes.
5
Approve by the deadline.
The deadline is earlier than the check date, and earlier again when a bank holiday intervenes.
6
Ensure the funding account has the money.
A failed debit does not just delay pay — it can create tax deposit penalties.
7
Confirm the run posted to the ledger.
Payroll should appear in your books, not just in the payroll system.

What to check on the preview

Two minutes here saves a correction cycle:

The total against last run. A large swing should have a reason you already know.
Anyone with zero net pay — usually a deduction error or missing hours.
Anyone whose hours look wrong, especially unexpected overtime.
New starters appearing, and leavers not appearing.
The total cash required, not just gross wages — employer taxes are real money leaving the account.

When something is wrong

When you notice	What to do
Before approval	Correct it in the run. Nothing has happened yet.
After approval, before the check date	There may be a cancellation window. Act immediately — the window is short.
After payment, underpaid	Process an off-cycle run for the difference. Some states require prompt correction.
After payment, overpaid	Recovery rules vary by state and can be restrictive. Get advice before deducting from a future cheque.
Wrong tax withheld	A correction adjusts the filings. Do not attempt to fix it with a journal entry — the filings would then disagree with the books.

Common questions

What is an off-cycle run for?

Anything outside the regular calendar: a correction, a final payment to a departing employee, a bonus paid separately, or a missed employee. It goes through the same approval and funding path.

Can someone else approve payroll?

Yes — payroll approvals can be routed to named approvers, and separating the person who enters hours from the person who approves the run is a control worth having.