Off-Cycle Payroll

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Off-cycle payroll allows you to issue payments to employees outside your regular pay schedule, such as one-time payments for corrections or non-regular earnings that require immediate attention. This type of payroll ensures employees receive prompt and accurate compensation for scenarios that fall outside the regular payroll process. One important detail to note is that specifying a pay period is mandatory for off-cycle payrolls, and it must follow your a pay frequency (weekly, biweekly, monthly, or semi-monthly).

Zoho Payroll lets you create off-cycle payrolls based on the following pay schedules:

• Weekly
• Bi-weekly
• Semi-monthly
• Monthly
• Quarterly

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Run an Off-Cycle Payroll

Running an off-cycle payroll in Zoho Payroll involves four main steps:

1. Creating an off-cycle payroll
2. Adding employees to an off-cycle payroll
3. Approving the off-cycle payroll
4. Recording payment for the off-cycle payroll

Step 1: Create an Off-Cycle Payroll

To create an off-cycle payroll:

1. Go to the Pay Runs module.
2. Click Create Pay Run on the top-right
3. Select Off-Cycle Payroll from the drop-down.
4. Select the pay period, Pay Period Start Date, and pay date.
5. Configure the Benefit and Deduction Preferences. Configuring this allows you to include or exclude employee benefits and deductions for the off-cycle payroll.
6. Click Save.

The off-cycle payroll will be created. In the next screen, you must add employees to the off-cycle payroll.

Step 2: Add Employees to the Off-Cycle Payroll

To add employees to the off-cycle payroll:

1. Click Add Employees in the Add Off-Cycle Details page.
2. Click Select an Employee and choose an employee.
3. If the employee is paid by hour, enter the Earning Hours for the selected pay period. If the employee is salaried, skip to the next step.
4. Click Add Earning and select an earning type such as Bonus or Commission.
5. Enter the bonus or commission amount for the employee.
6. Click Save. The employee will be added to the off-cycle payroll.
7. Click Continue to Payroll.

Review the payroll details, make necessary changes, and proceed to approve the payroll.

Step 3: Approve the Off-Cycle Payroll

To approve an off-cycle payroll:

1. Go to the Pay Runs module.
2. Click Process Pay Run.
3. Click Approve Payroll on the top right.
4. In the popup that appears, click Approve Payroll.

Your off-cycle payroll will be approved. If you have set up Direct Deposit for your organization and employees, salaries will be deposited to your employees’ bank accounts on the payday. Additionally, applicable tax amounts will be deducted from your organization’s bank account and deposited to the corresponding tax agencies.

Step 4: Record Payment for the Off-Cycle Payroll

If you pay your employees manually via check, cash, or any other payment mode, you can make the payment on the pay date and record it manually in Zoho Payroll.

To record payment for an off-cycle payroll:

1. Go to the Pay Runs module and open a payroll in the Payment Due status.
2. Click Mark as Paid on the top right.

3. In the pop-up that appears, select the Paid Through Account and Payment Mode.
4. Enable Send pay stub notification email to all employees if you want to email the pay stub to your employees. Otherwise, leave it disabled.
5. Click Save.

The off-cycle payroll will be marked as paid, and applicable state and federal taxes will be generated in the Taxes module.