Run an Off-Cycle payroll in Zenoti
This article explains how to run an off-cycle payroll in Zenoti Integrated Payroll (ZIP).
Overview
In some cases, you may need to process payroll outside of the regular pay schedule. Off-cycle payroll allows you to pay employees for missed payments, bonuses, reimbursements, or other special payments.
Off-cycle payroll is also useful when your business uses a different bank account for payroll for one or a few employees. As part of initiating an off-cycle payroll, you can choose the bank account and select a non-primary bank account as needed.
When should you run an Off-Cycle payroll?
You should run an off-cycle payroll in the following scenarios:
Missed payments: If an employee was not paid in the regular payroll run.
Bonuses and commissions: When issuing one-time payments outside the standard pay cycle.
Expense reimbursements: If employees need to be reimbursed separately from their regular paycheck.
Corrections and adjustments: When correcting payroll errors from previous pay periods.
Terminations: If employees are terminated, to process their settlements.
Note
To issue a non-taxable credit to an employee, use reimbursements.
Steps to run an Off-Cycle payroll
From the center level navigate to Employee > Zenoti Integrated Payroll > Payroll Dashboard.
Click Off-cycle payroll.
Click Create new Off-cycle payroll. In the pop-up window,
Select Pay period from the drop-down list.
Add a Description for the off-cycle payroll.
Select Payday by clicking the calendar icon.
Note
Paydays are scheduled only on business days, excluding weekends and bank holidays.
(Optional) Apply additional settings such as:
Tax all earnings as supplemental earnings
Apply benefits
Apply post-tax deductions
Click Continue.
Enter the details on the earnings data page.
Search for the required employee and input the required earnings for the off-cycle payroll.
Change an employee's payment method
The Payment Method column shows the payment method from each employee's payroll profile. You can change it for this off-cycle payroll run without updating their profile.
Click the Payment Method field for an employee to edit it. What you can change depends on their bank account status:
If the current method is Direct deposit — you can switch it to Manual.
If the current method is Manual and the employee has a bank account in Active or Pending Validation status - you can switch it to Direct deposit.
If the current method is Manual and the employee has no bank account or their bank account validation has failed - the field is not editable. Hover over the info icon next to Manual to see: No direct deposit account available.
Note
This change applies to the current payroll run only. It does not update the employee's default payment method in their profile.
To add custom earnings or reimbursements, click Add custom payment.
Change the payroll funding account
The earnings screen shows the business bank account that will be debited to fund this payroll run. You can change this before proceeding to preview.
To change the funding account:
Click the edit icon next to the bank account shown.
A panel opens listing all bank accounts added to your business setup.
Select the account you want to use for this payroll run.
Click Save.
Note
To add a new bank account, go to ZIP dashboard > Settings (right-side menu) > Bank account.
You can user filters to:
Employee Type: Filter by Regular or Contractor employees.
Status: Filter by Active and Terminated employees.
Onboarding Status: Identify employees with incomplete onboarding.
Search: Find employees using their name.
If an off-cycle payroll is paused, it will be saved as a draft and can be resumed as needed.
Note: You can edit Payday.
Click Preview payroll.
Verify the details and click Submit payroll.
Frequently asked questions (FAQs)
Q. Can off-cycle payroll support same-day payouts?
A. No. The payout occurs on the next business day if submission happens before 5:00 PM.
Q. What can I do to record a manual payment (for example, a final settlement already issued as a check to an employee)?
A. You can change the payment method directly on the Earnings screen when running the off-cycle payroll. Click the Payment Method field for the employee and select Manual. This applies to the current run only and does not change their default payment method in their profile.
If the employee's payment method is already set to Manual in their profile, no change is needed - simply run the off-cycle payroll as usual.
Key terms
Term | Description |
Off-cycle payroll | A payroll run that falls outside the regular pay schedule, used for bonuses, corrections, final settlements, or missed payments. |
Zenoti Integrated Payroll (ZIP) | Zenoti's built-in payroll management system that handles payroll processing, tax filings, and related documentation. |
Pay period | The time range covered by a payroll run, selected when creating an off-cycle payroll. |
Payday | The date on which employees receive their off-cycle payment. Paydays are scheduled only on business days, excluding weekends and bank holidays. |
Supplemental earnings | An optional tax treatment that can be applied to off-cycle payroll earnings, such as bonuses or commissions. |
Reimbursements | Non-taxable credits issued to employees for expenses. Use reimbursements when the payment to an employee should not be subject to tax. |
Non-primary bank account | An alternate bank account that a business can select during off-cycle payroll when a different account is used for payroll for specific employees. |
Custom payment | An option within the off-cycle payroll earnings page that allows you to add custom earnings or reimbursements for an employee. |
Post-tax deductions | Deductions applied after taxes are calculated, which can optionally be included in an off-cycle payroll run. |
Manual payment method | A payment method where the payroll is recorded but no direct deposit is issued. Used when a payment such as a final settlement has already been issued as a check to the employee. |
Draft payroll | An off-cycle payroll that has been paused and saved. A draft payroll can be resumed and submitted at a later time. |