This is an article in Getting Started with Payroll by Wave in Canada.
As an employer, you want to make sure your employees get paid on time every month. If you are writing your own cheques, you can do this on payday no problem. If you have direct deposit for your employees, there are wait times you need to be aware of!
One big thing before starting: Once you issue pay stubs to your employees, you cannot change the frequency your employees are paid. Meaning, if your employees get paid bi-weekly for a while, you can't then change this to paying them monthly. For more information on why, see Why can't I change my payroll frequency?
Writing your own cheques
If you are going to write your own cheques, you can do this on pay day or in advance.
1. You have to run payroll first to write cheques. From the left navigation menu, click Payroll > Run Payroll then, when you are ready, Run payroll.
2. After you have run the payroll, click the Approved Payrolls button to view pay stubs for previous Payrolls. Locate the Payroll you need to view and click the dates to view details.
3. Click Print checks.
4. You can select the employees who you want to pay by cheque. Note: You can set up direct deposit for some employees while writing cheques for others.
5. When ready, click Print.
Tip: Print out a few test pages before using actual cheques in your printer.
Direct deposit for your employees
If you have direct deposit set up, there is a waiting period. This is because it takes time to receive your request, make sure you have money in your account, then move it. Also, since it is money in and out of bank accounts, it all gets processed within normal banking hours. This means payday can't happen on weekends or bank holidays.
The 3 key things to know:
- The daily deadline to run payroll is 5:30pm EST. If you miss this deadline, your payroll will not be run until the next day.
- You can expect employees to be paid 4 business days after you have run payroll.
- If you want, you can run payroll in advance. Wave will only remove the money 3 days before payday.
If you're on the go constantly and have an iPhone, check out Payroll by Wave in the Apple Store. You can run your payroll from anywhere!
Let's say your direct deposit is already activated and verified, and your employee's payday is November 1st. In order for your employee to get paid on time, you need to run your payroll on October 28th before 5:30pm EST. See how it's 4 days in advance and before the cut-off time.
Here is a breakdown of what happens:
- Monday - request to take out money from the employer's account is sent to the employer's bank.
- Tuesday - money is taken out of the employer's bank account. Note: If Wave handles your remittances, this amount is included in your withdrawal.
- Wednesday - waiting for confirmation that the employer actually had the money and it's been taken out.
- Thursday - money is sent to the employee bank accounts.
- Friday - employees receive the money in their accounts. Payday!
One final thing to note is that if you just set up direct deposit, you need to finish activating your VersaPay account. This process can take longer than 4 days. A lot of Wave customers cut cheques for their first payroll then use direct deposit moving forward.
For more help and information on direct deposit, check out Setting up payroll direct deposit for the first time.
If you feel confident you'll have your employees paid on time, you can move onto the next article in getting started: What do I do about payroll taxes?