Once payroll is approved, Monograph will automatically collect funds from your firm's bank account, transfer wages into your employees' bank accounts on payday, and remit tax payments on time. A payroll will have one of four statuses: draft, pending, processing, and paid.
Continue reading for an overview of each status, what they mean, and how payroll is affected by each of them.
Draft
When a payroll is first created, it will be in the draft status by default. As long as the payroll is in the draft status, it can be modified in any way needed. This includes adding and removing payments, modifying earnings and hours worked, deleting payroll, and more.
To note: only draft payrolls can be previewed, and they can be previewed any number of times.
Pending
Once a payroll is approved, the status will change to pending, which means that it can no longer be modified or previewed. This is to prevent any changes since the taxes, net pay, and benefits have been calculated and saved for the payroll at this point.
If you find that there's an error with the payroll, you can reopen it to move it back into the draft status to modify, preview, or delete. Once the payroll is approved again, it will move back into the pending status.
Processing
Each business day at 5pm (PT), Monograph collects all pending payrolls that have an approval deadline for that day and begins the process of moving money through the banking system to pay them out. The first step that Monograph completes in this process is to submit an ACH transaction to debit the cash requirement for the payroll from the employer’s bank account. Once the payroll’s debit transaction has been sent to the ACH network, it moves into the processing status.
Once a payroll is processing, it can't be reopened for modification. If you require a change to a processing payroll, please reach out to our Support Team.
Paid
Due to the requirements of the ACH network, the employer debit transaction will take 3 business days to complete. For example, if a payroll with a Friday payday is approved on Monday prior to 5pm PT, the employer’s funds should reach Monograph's bank account by Thursday morning.
Once Monograph has received the cash requirement, we submit ACH transactions to send net pay to each employee who is set up to receive direct deposit. When these transactions are completed, the payroll moves into the final paid status.
Partially Paid
An ACH payment to an employee or a contractor can be returned for a number of reasons, but the most common is an invalid account/routing number or frozen bank account. In cases like these, Monograph will mark the payroll as partially paid.
This status means that we have attempted to send out employee or contractor payments and one or more of these payments failed. If you need to resolve a failure, please reach out to our Payroll Support Team for assistance. After the payment failure has been resolved, the payroll's status will flip back to paid.
Failed
There are times when the ACH transaction to debit the cash requirement for the employer's payroll will be returned. A common reason that this occurs is due to the employer's bank account having insufficient funds for the transaction at the time of the request.
When this happens, the payroll's status will appear as failed and, if possible, pauses in-flight employee and contractor payments for that payroll. If this occurs, then Monograph will work with you to quickly wire the cash requirement for the failed payroll before unpausing and delivering the payroll's employee and contractor payments.