Money Movement and Compliance

Money movement is a core concept in payroll processing that involves several automated financial transactions between different parties.

Overview

Money movement is a key concept to understand when implementing payroll features.

When your platform processes payroll through Easyteam Embedded, three main types of money movement occur:

Employer debits (funds collection)

Employee payments (funds distribution)

Tax payments (compliance and remittance)

Overview of payroll money movement flow

Employer Debits

Before each payroll run, Easyteam automatically calculates and collects the total required funds from the employer's bank account. This debit includes:

Total Employer Debit = Gross Wages + Employer Taxes + Reimbursements

Employee Payments

Easyteam supports multiple payment methods for distributing funds to employees:

Direct Deposit

The most common method, where funds are automatically transferred to employee bank accounts. This requires valid bank account information, pre-verification of accounts and has a standard ACH processing time (2-3 business days).

Paper Checks

Physical checks can be issued when direct deposit isn't available. Your platform can track check numbers and reconciliation through our API.

Cash Payments

While less common, cash payments can be recorded and tracked for proper tax reporting and compliance.

Tax Payments

One of the most complex aspects of payroll is managing tax payments. Easyteam automatically:

Calculates required tax withholdings

Collects funds for taxes during employer debit

Remits payments to appropriate tax authorities

Maintains compliance records

Implementation Considerations

When integrating payroll features, consider:

Timing: Money movement follows specific schedules

Employer debits occur before payroll processing

Employee payments follow standard ACH timeframes

Tax payments align with filing deadlines

Verification: Bank account validation is critical

Implement proper account verification flows

Handle failed payments appropriately

Maintain audit trails

Error Handling: Money movement can fail

Insufficient funds

Invalid account information

Network/system issues

When using embedded payroll with Easyteam, we takes care of all of these for you.

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Money movement involves real funds and has regulatory requirements. Talk with our team to learn more about the different considerations.

Overview#

Employer Debits#

Employee Payments#

Direct Deposit#

Paper Checks#

Cash Payments#

Tax Payments#

Implementation Considerations#