Employment type change after Payroll Run
This article explains the limitations around changing an employee’s employment type after payroll has been processed and provides guidance on how to proceed.
Overview
You can update an employee's employment type at any time, before or after payroll has been processed. Employment type is managed from the Zenoti Integrated Payroll (ZIP) module and can be configured at the center level, allowing an employee to be classified differently across centers if needed. In both cases, before or after payroll is processed, the employee's onboarding status resets to Not Started and must be completed again before the employee can be included in a future payroll run.
Update Employment Type
Employment type is managed exclusively from the Zenoti Integrated Payroll module. This field is not available in the general employee profile.
Go to Employees.
Click Zenoti Integrated Payroll from the left navigation.
Select Employees from the right-side menu.
Click Manage Employees against the relevant center.
Locate the employee and update the Employment Type field against their profile.
After saving, the employee’s onboarding status resets to Not Started. Onboarding must be completed again under the updated employment type before the employee can be included in a payroll run.
Updating Employment Type for employees across multiple centers
If an employee has a role across more than one center, the system will prompt you when an employment type change is saved:
Apply to all centers (default): The updated employment type is applied across all centers where the employee has a role.
Apply to current center only: The employment type is updated only for the center you are currently managing.
This means an employee can be configured as a W-2 Employee at one center and a 1099 Contractor at another, if your business requires it. Employment type is maintained at the center level.
Impact by Scenario
Scenario 1: Employment type changed before payroll is processed
The onboarding status resets to Not Started. The employee or business must complete onboarding again under the new employment type before the employee can be added to a payroll run. There is no payroll history on the profile at this stage, so no historical records are affected.
Scenario 2: Employment type changed after payroll has been processed
The onboarding status resets to Not Started in the same way. The employee or business must complete onboarding again before the employee can be included in future payroll runs.
All existing paystubs and tax documents remain accessible from the same employee profile.
No historical records are lost, and no additional action is needed from the business.
Previous paystubs and tax documents can be accessed from the same employee profile after the employment type is updated.
Completing Onboarding After an Employment Type Change
Once the employment type is saved, the employee’s onboarding status changes to Not Started. To complete onboarding:
The business can initiate onboarding from the employee profile in the ZIP module.
The employee will need to submit the required information — such as tax forms and payment details — under the new employment type.
The employee cannot be included in a payroll run until onboarding is marked as complete.
Frequently Asked Questions (FAQs)
Q. Where do I update an employee’s employment type?
From the ZIP module: Employees → Zenoti Integrated Payroll → Employees (right-side menu) → Manage Employees (against the relevant center) → Emp Type (against the employee). This field is not available in the general employee profile.
Q. Does the onboarding reset apply in both scenarios — before and after payroll?
Yes. Onboarding resets to Not Started whenever the employment type is changed, regardless of whether payroll has been processed. This ensures the correct tax forms and withholding details are captured for the new classification.
Q. Will I lose access to previous paystubs or tax documents after changing the employment type?
No. If payroll has already been processed, all historical paystubs and tax documents remain accessible from the same employee profile. Nothing is deleted or archived.
Q. Can an employee have different employment types at different centers?
Yes. When updating employment type for an employee who works across multiple centers, you can choose to apply the change to all centers or to the current center only. This allows an employee to be classified as a W-2 Employee at one center and a 1099 Contractor at another.
Q. What happens to historical payroll amounts after the employment type is changed?
Historical payroll amounts processed under the previous employment type remain unchanged on the profile.
Q. Can I correct an employment type entered by mistake?
Yes. You can update the employment type at any time from the ZIP module. Onboarding will reset and must be completed again under the corrected employment type.
Key Terms
Term | Description |
W-2 Employee | A standard employee whose taxes are withheld and reported by the business. |
1099 Worker / Contractor | An independent contractor responsible for managing their own tax withholdings. |
Employment Type | The classification that determines how an employee is taxed and reported (W-2 or 1099). Managed at the center level in ZIP. |
Onboarding Status | Tracks whether an employee has completed the required setup steps for payroll. Resets to Not Started when the employment type is changed. |
Employee Profile | A record in Zenoti that stores an employee’s details, settings, permissions, and employment type. |
Payroll Run | The process that calculates and finalizes employee earnings, deductions, and taxes for a pay period. |