When processing payroll, there are several steps that require money movement. This includes, but is not limited to, employer debits, worker payments, and tax payments. Here we explain the most common types of money movement.
Employer debits represent the total cost to be withdrawn from the employer account to cover: worker payments, tax payments, and any reimbursements.
When you submit payroll, your bank account will be debited the next business day.
To avoid restrictions and/or penalties, please ensure your bank account is properly funded prior to submitting payroll.
Worker payments represent the earned pay a worker is to receive, usually in the form of a direct deposit, paper check, or sometimes cash.
Direct Deposit, depending on the processing time your payroll account is set up for will determine when the funds will be deposited into your employees bank accounts.
2 - Day Processing: Funds will be deposited 2 days after you submit your payroll.
4 - Day Processing: Funds will be deposited 4 days after you submit your payroll.
Example: You are on a 4-day processing time and you submit payroll on Monday. Your workers will get paid on Friday.
Note: The exact time your workers receive their money depends on the time of the day you submit your payroll.
Tax payments represent the various types of taxes that must be paid (e.g. federal income tax, state income tax, local income tax, social security and Medicare taxes, etc.)
Paying and filing taxes can be quite complex and confusing. Aaniie Payroll ensures all employers remain compliant by withholding and submitting all payroll tax payments on their behalf.