Off-Cycle Payroll vs Regular Payroll: Processing Bonuses, Severance & Corrections
How to handle ad-hoc employee payouts, retroactive adjustments, and termination pay without disrupting your regular scheduled pay cycle.
Table of Contents
1. What is an Off-Cycle Pay Run?
While regular payroll runs on a fixed schedule (such as monthly on the 30th or bi-weekly on Fridays), unexpected compensation needs arise between standard cycles. An 'Off-Cycle Payroll' run is an ad-hoc batch execution created to disburse funds immediately without altering historical records.
Common scenarios include processing immediate final paychecks for departing employees, paying out quarterly performance bonuses, or correcting a missed timesheet entry.
- Final Pay / Severance: Meeting state mandates that require departing employee compensation to be disbursed within 24 to 72 hours of termination.
- Bonus & Incentive Disbursals: Delivering performance commissions or holiday bonuses separately from regular salary.
- Retroactive Timesheet Adjustments: Compensating hours that were approved after the regular pay run cutoff.
Handle Off-Cycle Payouts Without Friction
Run ad-hoc bonus batches, severance payouts, and timesheet corrections in seconds with Wokaim's flexible off-cycle payroll tool.
Frequently Asked Questions
How are supplemental off-cycle wages taxed?
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