A pay period in Paycom is the window of time that determines when paychecks are dispatched. It can be biweekly or monthly, completely depending on the company's requirements.
Only when the pay period is approved, the payroll processing moves to the next step. This article covers what does ‘approve pay period’ mean on Paycom, its importance, and the process.
The 'Approve Pay Period' action in Paycom is a step in the payroll process where an employer or payroll administrator confirms that the data for a specific pay period is accurate and ready for processing.
Follow the given process to approve a pay period on Paycom:
Here’s why approving a pay period holds crucial importance for businesses:
Accuracy Of Payroll Data
The primary purpose of approving the pay period is to verify that all information is accurate. During the pay period, employees log their hours worked, and any adjustments or changes, such as vacation days, sick leave, or overtime, are recorded.
Once the pay period is approved, it confirms that the recorded information is complete and correct.
Avoiding Payroll Errors
If a pay period isn’t approved, employees may not receive the correct pay for that particular time period. Unapproved periods can lead to payroll errors, such as missing hours, incorrect deductions, or failure to apply benefits correctly. By reviewing and approving the pay period, you reduce the risk of such mistakes.
Finalizing Payroll
Once the pay period is approved, it moves to the next phase of the payroll cycle, which typically involves processing payroll for payment. This includes calculating salaries, taxes, benefits, and other deductions.
Without approval, the system may not process the payroll, delaying payments and potentially missing payroll deadlines.
Legal Compliance
Payroll is subject to various local, state, and federal regulations. When the pay periods are approved, businesses can ensure compliance with tax laws, labor regulations, and other employment-related rules.
Tracking Changes and Updates
The 'Approve Pay Period' feature also allows payroll administrators to track any changes or updates made during the pay period. This is particularly important if employees submit time corrections, such as missed clock-ins or changes to their reported hours.
On the whole, approving the pay period is not just a formality, it is essential for maintaining efficient, error-free payroll processing. The process of doing so is simple, as explained in the step outlined above. By approving the pay period, you can rest assured your employees will be paid on time and accurately.