FAQ

Q. What is the latest I can submit my payroll?

A. We require a minimum of a 48 hour turnaround to ensure adequate processing and delivery time to get your payroll to you by your scheduled check date.  (Ex: If your check date is Friday, payroll must be submitted on Wednesday before noon.  If your check date is Tuesday, payroll must be submitted on Friday before noon.)

 

Q. Can I submit payroll after business hours?

A. Yes.  While the final step in the payroll process can only be completed during regular business hours, payroll can be submitted online – any time – anywhere within the US.

 

Q. How many payrolls will we run in one year and what is the standard number of hours in each pay period?

A.  

Pay Frequency Number of Pay Periods in one Year Standard Number of Hours Per Pay Period
Weekly 52 40
Bi-Weekly 26 80
Semi-Monthly 24 86.67
Monthly 12 173.33

 

Q. When will direct deposits enter my employees’ accounts?

A. Direct deposits will enter accounts on your scheduled check date.  We cannot control what time of day the deposit will take place as this varies greatly from one financial institution to the next.  Financial institutions are NOT required to deposit at a certain time, they are only required to deposit the funds into the account by the end of that business day although this late of a deposit rarely occurs.

 

Q. My employee’s deposit did not show up in their bank account, what happened?

A. Your funds are SAFE.  If your employee has checked their account online or through an automated phone system and has determined their deposit is not in their account they should first call their financial institution and speak to a representative to verify the deposit as the online and phone systems may not update regularly.  If the representative indicates no deposit has taken place this is most likely due to an incorrect routing or account number. One of two things will occur:

  • The financial institution will review the pending deposits that have not been associated with an account and may deposit the funds later in the day if they are able to match the employee’s name with an account number close to the number on the deposit.  The financial institution will send a correction addendum to our office notifying us of a correction to take place with the direct deposit information.
  • The financial institution will be unable to match the deposit with an account and will reject the funds.  If the funds are rejected the financial institution will return the funds to our account.  We receive an official rejection notice after 3-5 business days at which point we will notify the Main authorized Payroll Contact and return the funds to the employer’s account.

 

Q. What forms do I need to have my newly hired employee complete and does PayPath need a copy?

A. New hires must complete Forms W-4 and I-9.  Please find these forms available to you in the Resource Center under PayPath Forms.  You may also wish to have the employees complete the Employee Maintenance Form and the Direct Deposit Authorization Form, also found in the Resource Center.  If you enter your payroll using our online system you may enter your new hires online as well.  PayPath will only request a copy of these forms if we will be assisting you with entering the employee(s) into the system.

 

Q. Does PayPath handle our New Hire Reporting requirements?

A. Yes.

 

Q. What do I do if I receive a Child Support order, Garnishment order, Levy notice, or tax notice?

A. If you have received any of the above listed documents please forward them to our office immediately.  Child Supports, Garnishments, and Levies are employee specific and a new deduction code must be set up according to the order/notice.  Tax notices will be directed to our Tax Department for review and resolution.

 

Q. What is the difference between gross pay and net pay?

A. Gross pay is your total compensation before taxes and deductions are withheld.  Net pay is your take home pay after taxes and deductions have been withheld from your gross pay.

 

Q. Why don’t the wages on my W-2 match my gross wages for the year?

A. On Form W-2 boxes 1, 3, and 5 represent the total taxable wages for the year.  There is often a misconception between gross wages and taxable wages.  Gross wages is the total compensation paid by an employer to an employee before taxes and deductions are withheld.  Taxable wages is the total gross compensation less any qualified deductions/exemptions.

  • Box 1 on Form W-2 represents income received which is subject to Federal Income Tax.  Box 1 will report the total of gross wages less any pre-tax deductions.  The most commonly elected pre-tax deductions by employees are 401k contributions, 403b contributions, flexible spending accounts, dependent care, parking (if tax-exempt), and section 125 cafeteria plan medical/dental/vision premiums.
  • Boxes 3 and 5 on Form W-2 represents income received which is subject to FICA (Social Security) and Medicare taxes.  Boxes 3 and 5 will report the total of gross wages less the following permitted pre-tax deductions: dependent care, flexible spending accounts, section 125 cafeteria plan medical/dental/vision premiums, and parking (if tax exempt).  Note: The Social Security taxable wages in box 3 are capped by the annual limit which equals $106,800.00 for 2011 but is typically adjusted annually for inflation.