Types of Payroll in PayWow
Last modified 6/18/2020 8:28:32 AM EST |
Added by Paywow Team
Payroll is processed in order to pay your employees and contractors. PayWow offers four different types of payroll to choose according to various payroll situations. These payrolls are explained below.
The regular payroll is a scheduled payroll, run for your employees to pay their regular pay. In order to run a regular payroll, you need to create a pay schedule and assign employees to the schedule. You can also skip employees or give your employees a bonus during any regular pay cycle. The tax withholding rate calculated for bonus amounts will be based on W-4 withholdings.
Contractor Payment is run to pay contractors their compensation either by the hour or fixed payment for an entire job. Contractor Payroll is not a scheduled run so you can pay contractors at any time - per the contract. You can pay your contractors by check or direct deposit. You can also use pay per Job tracker to track the payments you make for each job.
Bonus Payroll is run to pay any given bonus amount, for example, a reward or gift, to employees at any time. Bonus payments can be made along with employees' regular pay and run as part of Regular Payroll, or they can be run separately as a Bonus Payroll. If bonus payments are run separately as a Bonus Payroll, you can choose either the supplemental wage fixed rate (22% of tax withholdings) or the regular payroll rate, which uses W-4 withholdings for tax rate calculation. Payments can be made to your employees by check or direct deposit.
Off-Cycle Payroll is essentially a payroll that can be run at any time, regardless of the regular payroll schedule. Mostly, this payroll is used to pay employees who were skipped during the regular pay schedule or who joined in the middle of a payroll cycle. However, Off-Cycle Payroll can be used for any reason. There is no fixed date to run Off-Cycle Payroll. Off-Cycle Payroll payments can be made by check or direct deposit. You can also issue bonus payments during an off-cycle payroll. The tax withholding rate calculated for bonus payments can be either 22% of the supplemental wage fixed-rate or based upon W-4 withholdings.