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,
1. Select Pay period from the drop-down list.
2. Add a Description for the off-cycle payroll.
3. Select Payday by clicking the calendar icon.
  Note
  Paydays are scheduled only on business days, excluding weekends and bank holidays.
4. (Optional) Apply additional settings such as:
  - Tax all earnings as supplemental earnings
  - Apply benefits
  - Apply post-tax deductions
5. 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.
To add custom earnings or reimbursements, click Add custom payment.
- Select the bank account for this payroll run. If your business uses a non-primary bank account for specific employees, choose the appropriate account from the available options.
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. Follow these steps:

Navigate to the ZIP dashboard.
Click Employees in the right-side menu.
Click View Details for the respective employee.
Change the payment method from Direct deposit to Manual.
Run payroll with the payment method set to Manual.

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.

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