Off-Cycle Payroll Payments
We know that sometimes you need to pay your employees outside of your typical payroll schedule. If you want to send a bonus separately, accidentally underpay, forget to pay one of your employees, or pay your employees on an irregular schedule, you can do so by making an off-cycle payment at no extra cost.
Process an Off-Cycle Payment
To make an off-cycle payment:
- Visit the Overview tab of your online Payroll dashboard and click Pay My Team > New Off-Cycle Payment.
- Select the pay period you would like to pay your employee(s) for, or define a custom period.
- Select the Payment Type that applies to the payment:
- Regular Pay will calculate taxes based on the tax rates and W-4 information at the time the off-cycle payment is sent.
- Bonus Pay or Other Supplemental Pay will be calculate taxes using the federal supplemental withholding rate of 22%. To learn more about withholding rates, refer to IRS Publication 15 and your state’s employer’s tax guide.
- Select the Payment Method you would like to use to pay your employee(s). You can pay all employee(s) by check or by their default payment method.
- Select the employee(s) that you wish to pay and enter in the number of hours worked and any additional pay for each employee. If you’re using Square Point of Sale’s timecards or a supported third-party timecard application, click Import Timecards to import your employee’s hours worked for the pay period. If you’re using Square to take payments and have enabled Tip Importing, click Import Timecards and Tips to import your employee’s hours and tips for the pay period.
- After entering in this information for all employees that need to be paid, click Continue.
- If you’ve set up employee benefits or post-tax deductions, confirm deduction/contribution amounts and make any necessary edits. You can also add reimbursements if needed.
- You will be taken to a screen containing a detailed breakdown of the off-cycle payroll and the bank withdrawal. Click Confirm Withdrawal to approve and process the off-cycle payment(s).
Note: If you make an error, you have until 7 PM PT that evening to cancel your off-cycle payment using the Cancel button on the home screen of the Payroll section of your Square Dashboard.
Your off-cycle payroll will be processed the same day it is submitted. Funds will be debited from your linked bank account on the next business day, and employees that are paid by direct deposit will receive their pay four business days after the payroll is sent.
Note: The pay date that is used for tax calculation and reporting purposes will always be at least four business days after the off-cycle payment is sent – even if the pay period dates are in the past.