Payroll Processing Checklist

Pull the new-hire roster from the HRIS and confirm a signed I-9 (with Section 2 employer verification within 3 business days of start) and a current W-4 for each name. Missing W-4 defaults the employee to single / no adjustments — common payroll error that surfaces only when the employee questions the first paycheck.

Any new or changed bank account from the prior cycle should have completed its prenote (typically 3 business days). Accounts still pending get a paper check this cycle — don't let an unverified account ride to live ACH.

Cross-reference the comp committee memo against the rate table in the payroll system. Promotions and merit increases without a signed memo do not get applied — push back to HR rather than processing on a verbal.

Pull termination, FMLA, and unpaid-leave events from HR for the period. Terminations drive final-pay obligations, which vary by state — California requires payment at termination, others allow next regular pay date.

Close the period in ADP, Paylocity, Gusto, or whichever system the firm runs so further punches require a manager exception. Send a 24-hour heads-up to managers the day before so late submissions don't become payroll's problem.

Manager-of-record approval is required before timesheets feed gross-pay calculation. Chase outstanding approvals at 10 AM on close day; default to prior-period hours only with written department-head authorization.

Reconcile reported overtime against each employee's FLSA classification in the HRIS. Misclassified exempt employees showing OT is the signal — not the OT itself; flag to HR rather than silently processing the OT or zeroing it.

Pull commission and trailer detail from Schwab, Fidelity, or Pershing and tie to the firm's grid by advisor. Splits, overrides, and house-account carve-outs are the common reconciliation gaps — work them before they hit gross pay.

Bonuses ride on the signed bonus memo from the CEO or comp committee — never on a Slack thread. Flag any bonus to a registered rep so compliance can confirm the payment is consistent with the supervisory comp arrangement.

Apply active income withholding orders (IWO), tax levies, and creditor garnishments per the disposable-earnings cap (CCPA limits 50–65%). State child-support agencies require remittance within 7 business days of withholding — track the remittance, not just the deduction.

Calculate final wages including accrued and unused PTO per state law (California, Illinois, and several others mandate PTO payout; many states do not). Coordinate with HR on COBRA notice timing and 401(k) loan acceleration.

Generate the preliminary register and review headcount, gross, and net against the prior cycle. Variances over 3% on net pay should have a documented reason — bonus cycle, mid-period raise, leave return — before sign-off.

Spot-check withholdings for multi-state employees and remote workers — state income tax follows the work location, not the office address. Watch for employees who moved during the period without updating their state W-4.

Cap 401(k) elective deferrals at the current-year IRS limit ($23,500 in 2025; +$7,500 catch-up for 50+). HSA deferrals capped at family/single limits. Highly compensated employees may need additional ADP/ACP-test throttling per the plan document.

Send the register PDF and the variance summary to the CFO. Sign-off must occur before the ACH cut-off in the next phase — do not assume verbal approval; capture the response in the data field below.

Work the CFO's flagged items, rerun gross-to-net, and resubmit a corrected register for re-approval. Document the root cause in the cycle's payroll log so the same exception doesn't repeat next pay period.

NACHA same-day ACH cut-offs vary by originating bank — typically 10:30 AM, 2:45 PM, and 4:45 PM ET windows. Miss the cut-off and pay date slips a day; build in a buffer rather than running to the wire.

DOL safe harbor for small plans is 7 business days from withholding; large plans must remit as soon as administratively practicable, which DOL has interpreted as 1–3 days in enforcement. Late deferrals are a prohibited transaction requiring lost-earnings calculation and Form 5330 filing — don't slip on this.

Schedule the 941 federal deposit per the firm's deposit schedule (semiweekly or monthly). Semiweekly depositors must remit Wednesday–Friday paydays by the following Wednesday; Saturday–Tuesday paydays by the following Friday. Late deposits accrue 2–15% IRS penalty.

Tie the gross wages, employer taxes, and benefit liabilities posted to the GL against the ACH debit and tax payments that hit the bank. Unreconciled differences over $0.01 stay on the payroll exception log until cleared — never write them off to a generic suspense account.