Payroll

Payroll Processing

Learn about our payroll processing system and features.

10 min read

Run lifecycle

A run moves through five states. Only draft is editable, and only settled is final.

  • draft — open for edits, recalculates on every change
  • pending_approval — locked, waiting on an approver
  • submitted — approved, funds requested
  • settled — money moved, stubs published
  • reversed — pulled back before or shortly after settlement

Calculation order

Order matters, because each step changes the base for the next. Payflo calculates gross, subtracts pre-tax deductions, applies taxes to the reduced base, then subtracts post-tax deductions and garnishments.

This is why moving a deduction between pre-tax and post-tax changes employer tax liability, not just employee net pay.

Funding

Payflo debits one total per run covering net pay plus employer taxes. Standard ACH settles in four business days; same-day ACH is available on eligible accounts.

A failed debit halts the run before payments go out. Nothing partially executes.

Multi-state employees

An employee working across states may owe withholding in more than one. Payflo applies reciprocity agreements where they exist and splits withholding by work location otherwise.