7shifts 101: Payroll Setup Guide
7shifts Payroll is a fully integrated solution that works alongside your scheduling, time clocking, and tip management tools. With a complete setup, 7shifts Payroll pulls in timesheets and tips, calculates wages and taxes, and automatically generates year-end forms.
Things to know
Important: Only Admins can enable and set up 7shifts Payroll.
- 7shifts Payroll is available for accounts located in the U.S. with locations that share the same FEIN and bank account. See eligibility requirements here.
- Payroll setup and processing can only be managed by Admins in the 7shifts web app.
- Accounts start on a 3-day processing timeline but may qualify for 2-day processing after 10 successful funding cycles.
- 7shifts Payroll does not support IRA/401(k)/Workers Comp transfers or Owner's Draw. See a full list of unsupported businesses and industries here.
- Tipped minimum wage structures automatically calculate tip shortages and credits.
How to set up 7shifts Payroll
- Log in to the 7shifts web app as an Admin.
- Select Payroll in the left navigation bar.
- Click Get started or Talk to a payroll expert to enable the feature.
- Once enabled, follow the steps below depending on whether your account is a Switcher (moving from another provider) or Inception (new to payroll)
- To comply with state regulations, you'll need to grant TPA access through your state portals: 7shifts Payroll: Third Party Administrator Access (TPA)
Switcher
You're moving from an existing payroll provider to 7shifts. For example, businesses moving from another payroll provider to 7shifts Payroll. Learn more about Migrating Payroll Data to 7shifts Payroll here.
This ensures 7shifts has the correct information for tax filings and compliance.
Verify your legal business details and add a signatory > Save.
Payroll taxes and compliance vary by location; linking them ensures accuracy in reporting.
Click Add location to Payroll, and choose an existing one from the dropdown menu > Confirm.
At this step, only add locations that share the same EIN.
If all locations in your 7shifts account operate under one EIN, you can add them here.
If any of your locations use a different EIN, do not add them in this setup. Each EIN must be set up separately using the Multi-EIN workflow to ensure correct tax filing and state account mapping.
Adding multiple EINs under one setup will require manual intervention from our team to remove incorrectly added workplaces and employees. This may delay your onboarding.
Payroll funds and tax payments must be withdrawn from a verified account to process employee pay.
Check partners with Plaid to connect your bank account via your login credentials securely. You can link your bank account or provide your account details for ACH banking.
⚠️ If your financial institution is not supported, chat with our Support team for further assistance. Please note that you must provide proof of ownership for security and reporting purposes.
You can expect that when funds are withdrawn from your bank account, this will show as one line item in your transactions ( it includes payroll funds withdrawn and applicable taxes).
Enter state and federal tax details so 7shifts can calculate and file correctly. Without accurate tax setup, your filings and payments could be delayed or incorrect.
You'll need the following information:
- Federal Employer Identification Number (FEIN)
- Unemployment Tax. Account Number
- Unemployment Tax Rate
- Withholding Tax Account Number
7shifts does not provide these details. Please contact your accountant or state agency if you don’t have this information.
Uploading your current payroll reports ensures 7shifts has the information needed to set up accurate wages, taxes, and deductions for your team.
⚠️ Do not send Onboarding packages before payroll migration is complete. If sent early, they will need to be resent.
Log in to your existing payroll provider, and find the reports section to download the following:
- Employee demographics to correctly identify your team and generate tax forms
- Direct deposit information to make sure paychecks are accurate and on time
- Withholding setup to calculate the right taxes for each employee
- Garnishments to continue deductions without disruptions
- Pay history to keep accurate year-to-date totals, tax filing, and reports
Follow the automated prompts to upload these reports, you'll also have the option to do this manually.
Not sure if you have all those reports? Upload everything you do have, and Check will reach out if anything is missing.
Once complete, return to your Payroll Setup page and click Submit company for setup. You'll be prompted to select your first pay date, and our team will begin reviewing your submission. Keep an eye on the progress bar for updates, or wait for the confirmation email letting you know you're ready to run your first payroll with 7shifts Payroll!
Employees provide their own tax and payment details, which are required before they can get paid.
Onboarding for Admins & Managers
Onboarding for Employees
You can use the filters to narrow down your list by employee name, location, or status.
Hover over each status icon to reveal the missing details from that employee's unique checklist.
Blocked for Payroll - required information is missing from this user profile, and it is preventing this profile from being included in payroll. For example:
Needs Attention - while this user profile contains missing information, it will still be included in payroll. It is still important to address the issues before the end of the year. For example:
Click on Review Details to enter the legal details that are missing on behalf of the Employee. Please note that tax and payment method details can only be completed by the Employee via Onboarding:
Onboard your Admin profile.
To onboard yourself, head to Payroll in the left navigation bar > Settings > Employees > search and locate your profile > click Start Onboarding.
Add all terminated employees.
⚠️ To stay compliant, be sure to check in with your state's local labor laws to ensure that you're paying terminated employees within the required period from the employee's last date.
Many states have laws that require employers to provide departing employees with their final paychecks within a certain timeframe, others require it on their last day of work. Check out this list for more information about your state's employment laws.
Inception
You're starting payroll for the first time in 7shifts with no prior provider. For example, brand-new restaurants or businesses that have never used a payroll provider before.
This ensures 7shifts has the correct information for tax filings and compliance.
Verify your legal business details:
Payroll taxes and compliance vary by location; linking them ensures accuracy in reporting.
Payroll funds and tax payments must be withdrawn from a verified account to process employee pay.
Check partners with Plaid to connect your bank account via your login credentials securely. You can link your bank account or provide your account details for ACH banking.
⚠️ If your financial institution is not supported on the web app, chat with our Support team for further assistance. Please note that you must provide proof of ownership for security and reporting purposes.
You can expect that when funds are withdrawn from your bank account, this will show as one line item in your transactions ( it includes payroll funds withdrawn and applicable taxes).
Enter state and federal tax details so 7shifts can calculate and file correctly. Without accurate tax setup, your filings and payments could be delayed or incorrect.
Employees provide their own tax and payment details, which are required before they can get paid.
Onboarding for Admins & Managers
Onboarding for Employees
You can use the filters to narrow down your list by employee name, location, or status.
Hover over each status icon to reveal the missing details from that employee's unique checklist.
Blocked for Payroll - required information is missing from this user profile, and it is preventing this profile from being included in payroll. For example:
Needs Attention - while this user profile contains missing information, it will still be included in payroll. It is still important to address the issues before the end of the year. For example:
Click on Review Details to enter the legal details that are missing on behalf of the Employee. Please note that tax and payment method details can only be completed by the Employee via Onboarding:
Onboard your Admin profile.
To onboard yourself, head to Payroll in the left navigation bar > Settings > Employees > search and locate your profile > click Start Onboarding.
Add all terminated employees.
⚠️ To stay compliant, be sure to check in with your state's local labor laws to ensure that you're paying terminated employees within the required period from the employee's last date.
Many states have laws that require employers to provide departing employees with their final paychecks within a certain timeframe, others require it on their last day of work. Check out this list for more information about your state's employment laws.
Payroll Dashboard and Settings
Once payroll setup is complete, clicking Payroll in the left navigation will take you directly to your Payroll Overview. Get quick access to running an on/off cycle payroll, payroll in draft statuses, and your payroll history.
To delete a payroll in draft, select the More Options icon .
⚠️ Please note that deleting a payroll is a permanent action and cannot be undone.
All payroll configurations are divided into five tabs: Employees, Benefits, Taxes, Locations, and Business Settings.
Check the current onboarding status for your employees: and use the filters to narrow down your list by employee name, location, or status.
-
Blocked for Payroll = required information is missing from this user profile, and it is preventing this profile from being included in payroll. For example:
-
Needs Attention = while this user profile contains missing information, it will still be included in payroll. It is still important to address the issues before the end of the year.
- Click on Review Details to enter the legal details that are missing on behalf of the Employee. Please note that tax and payment method details can only be completed by the Employee via Onboarding:
- Be sure to click Save to complete any changes.
- Employees that will not be considered when running payroll, can be removed by clicking on the More Options icon next to their names > Remove from payroll:
7shifts Payroll: Integrated Benefit Providers
The Taxes tab gives you full visibility into your payroll tax activity in 7shifts Payroll.
Year-End Forms
View and manage your employees’ year-end tax documents. This section lists the number of W-2 employees and 1099 contractors, with quick access to their respective forms once they’re generated.
Tax Forms
See all company-level tax filings, including form type, jurisdiction, filing period, and filing date. If no forms have been filed yet, this section will remain blank until the first submission is processed.
Tax Payments
Track each payroll’s tax withholdings and payments. For every pay run, you’ll see:
- The tax type and jurisdiction
- The amount due
- Due date
- Funding status (e.g., Funded, Pending)
- Deposit status
Manage the locations available here in your Locations/Departments/Roles settings.
Review and make edits to:
- Banking Information
- Tax setup
- Filing Authorization
-
Accounting integration
Be sure to hit Save when making any new changes!
Next steps
Once your team is onboarded and your company is submitted for setup, you are ready to run your first payroll.
Related articles
Run Your First Payroll
7shifts Payroll: Third Party Administrator Access (TPA)
Migrating Payroll Data to 7shifts Payroll
Resources
Below you'll find historical data extraction steps for commonly used payroll providers: