Prerequisites to Run Zenoti Integrated Payroll
This article explains the setup tasks required before running payroll using Zenoti Integrated Payroll (ZIP). Completing these prerequisites ensures accuracy, compliance, and a smooth payroll experience for both business owners and employees.
Overview
ZIP is a full-service payroll platform designed for the wellness and personal care industry. To run payroll successfully, businesses must complete a set of configuration tasks covering employee records, pay periods, compensation logic, tax and banking information, and payroll permissions. When these components are set up correctly, ZIP can automate earnings calculations, tax filings, and payouts confidently and compliantly.
Assign payroll permissions
To access and process payroll, the user must be assigned the Process Payroll Payouts role permission in Zenoti. Without this permission, payroll functions will remain inaccessible.
To assign roles, navigate to Admin > Security Roles > Permissions.
For more information, refer to the Enable Permissions for Zenoti Integrated Payroll article.
Create employee records
Every payroll run depends on complete and accurate employee profiles. These profiles should capture:
Full name and contact details
Employment type (W2 or contractor)
Compensation structure (hourly/salaried)
Tax filing information (W-4, bank details)
Accurate records ensure proper commission tracking, benefit application, and tax deductions.
For more information on how to create employee records or employee profiles, refer to the Onboard Employee for Zenoti Integrated Payroll article.
Set up pay periods
Pay periods define when and how often employees are paid. ZIP supports:
Bi-weekly (14-day intervals)
Monthly
Weekly or custom frequencies
Proper pay period setup ensures payroll runs are aligned with your internal schedule and allows consolidated processing across multiple centers if pay periods match.
Configure compenstation logic
Before initiating payroll in ZIP, it is essential to ensure that employee earnings are correctly set up and calculated for the selected pay period. This is only possible when three critical components are in place:
Employee records
Each employee must be added to the system with complete payroll eligibility details.
Pay periods
Pay frequencies and period durations must be configured for each business entity or center.
Compensation logic
ZIP requires all compensation configurations to be defined before it can calculate earnings. This includes:
Salary or hourly pay rates
Commission structures and payroll plans
Attendance and check-in policies
Rules such as “Do not include invoices from other centers”
Eligibility to include in payroll
Once these are configured, businesses should review the Payroll Summary Report at the center, zone, or organization level. This report helps validate that employee earnings such as hourly wages, commissions, and tips—are being calculated accurately for each pay period.
This step ensures that:
All inputs from appointments, product sales, check-ins, and attendance are reflected correctly.
The Payroll Input screen shows reliable, up-to-date earning data.
Avoidable manual edits and errors are minimized before submission.
Complete onboarding checklist
For businesses onboarding to Zenoti from another payroll provider:
Set up tax and bank information
For ZIP to file taxes and deposit employee wages:
Link the business’s payroll bank account
Set up tax details for all applicable jurisdictions (Federal, State, Local)
Authorize tax filing via the Zenoti system
This setup is typically completed during onboarding. For switcher companies, ensure the Year-to-Date (YTD) payroll history is uploaded to validate current liabilities and tax positioning.
Review mapped employee profiles and correct any unmatched records
Upload prior payroll data (gross pay, tax deductions, benefits)
Validate historical liabilities
Finalize payroll configuration and perform audit
For more information, refer to the Onboard a Business to Zenoti Integrated Payroll article.
Verify benefits configuration
If your business provides benefits (401(k), health insurance, or workers’ compensation):
Sync with providers like Guideline, SimplyInsured, or Next
Configure benefit types and link deductions in payroll setup
Ensure benefit partners are set up correctly for automated or manual deduction tracking
Zenoti does not collect or remit benefit payments directly. These are managed between the business and the provider.
Confirm Net Pay Split (Optional)
If employees choose to split net pay across multiple bank accounts:
Ensure all destination accounts are added to the employee profile
Define split method: percentage or fixed amount
ZIP supports splitting net pay into up to three accounts
For more information, refer to the Net Pay Split in Zenoti Integrated Payroll article.
Validate before first payroll submission
Before running the first payroll:
Confirm all employee records are correctly mapped
Validate compensation logic and pay period dates
Review Payroll Summary Report to catch discrepancies early
Ensure tax and benefit deductions reflect current plans
Important
If switching from another provider, ensure the most recent external payroll has been imported.