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.

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.

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.

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.

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.