How to resolve a 'Payroll Classification' error
If you’re using 7shifts for payroll, you can classify employees as either W-2 Employees or 1099 Contractors. Proper classification is essential to ensure each worker receives the correct tax documents for year-end filing. Learn more about 1099 Contractors here.
When running payroll in 7shifts, you may encounter a 'Payroll Classification' error that prevents certain employees from being included in the payroll run. This article will guide you through resolving this error so employees are included under the correct payroll classification.
If an employee is blocked from payroll with a 'Payroll Classification' error, follow these steps to resolve it:
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Open the Employee's Profile:
- Go to Team > Employees > select the employee’s profile > Employment > History.
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Check the Payroll Classification Field:
- Select the appropriate Payroll Classification for the employee.
- If the field is uneditable, it indicates that the employee has already been paid in 7shifts under the current classification.
- To change the classification, you’ll need to terminate the current employment:
- Click the more options icon next to the active employment.
- Select Terminate employment.
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Update the Employee’s Payroll Classification:
- Create a new employment entry with the correct payroll classification by selecting +Add Employment Record.
- Create a new employment entry with the correct payroll classification by selecting +Add Employment Record.
⚠️Important: This process ensures accurate year-end tax filing, so the employee receives the correct tax documents.