After a payroll is processed and the totals are verified post-processing can include the creation of output files that can’t be automated during processing, verification of all garnishment service data, and verifying any changes that were made to setup such as new bank accounts, general ledger or other file exports and many other items.
Disks with encrypted data, FTP uploads and many other custom processes may occur during this period. These checkpoints allow another opportunity for human intervention to be sure that all payroll data is correct.
Post processing also includes organizing the output into the appropriate categories. For example, some organizations have checks sent to a variety of locations and then reports to the corporate office.
Packaging and Shipping:
Although the adoption of paperless payroll is increasing, most companies still request that paper checks and reports be delivered to their offices or facilities. It is vital that instructions be followed exactly (and they can get complex), and that all information is delivered to the correct location in a timely manner.
For example a large restaurant chain with more than 50 locations needs checks shipped to each restaurant by a variety of shipping methods and delivered on the correct day.
At Southwestern, we use a custom shipping log to track the status of all payrolls and to record how and when it was processed for shipping.
After a payroll has been processed and verified, often electronic banking needs to be processed. This includes the collection of funds needed to pay employee direct deposits, company payroll tax deposits, and payroll processing fees.
We may also need to collect funds for any payroll or third party checks written on a client’s behalf out of our bank accounts. ACH processing also includes making payments to employees, third parties and some taxing authorities.
Southwestern Payroll uses strong controls and secure data transfer for all electronic banking.
In order for ACH transactions to be processed on time and to guarantee timely deposit into the destination account, they must be transmitted to the bank two business days prior to the intended settlement date.
This ACH processing deadline is the point from which we work backwards to determine when input must be received from our clients.
Transactions can be initiated one day in advance and still be received on time in most cases, but these deposits are never guaranteed.
When an ACH transaction fails due to incorrect data input, we receive notification from the bank. We track the receipt of funds back into our account and distribute these payments back to the appropriate party per our client’s instructions.
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