How to Process Payroll Manually with Paper Checks

Missing a payroll submission deadline or encountering issues like insufficient funds can disrupt your payroll schedule. However, processing payroll manually with paper checks is a fast and reliable way to ensure your employees get paid on time. This method is especially useful in emergencies and requires minimal additional effort. Plus, taxes are handled automatically, reducing administrative stress.

In this guide, we’ll walk you through when to use paper checks, the steps to process 7shifts payroll manually, and best practices to ensure smooth payroll distribution.

When to Use Paper Checks

Paper checks are a great backup solution in several scenarios:

• Missed Payroll Deadlines: If you’ve missed the deadline for electronic payroll submission, paper checks can be processed immediately to avoid delays in employee payment.
• Employee Requests: Occasionally, employees may prefer paper checks and select this as their payment option over ACH.

Using paper checks is highly recommended because it allows for immediate payment while maintaining compliance with tax obligations.

Steps to Process Payroll Manually with Paper Checks

Follow these steps to process payroll manually:

1. Access the Payroll Dashboard: Navigate to the 7shifts Payroll dashboard.
2. Select the Pay Period: Choose the Pay Period you are processing.
   • Starting a New Payroll: If you haven't already begun a payroll draft for this period, click 'Run Payroll.'
   • Updating an Existing Draft: If you have a draft started and need to change the payment method to paper check, click on the three dots next to the draft and select 'Update overdue payroll option.'
     
3. Choose 'Paper Checks': Select 'Paper Checks' as your payment method.

   

4. Review Payroll Details: Carefully verify that all employees hours and pay details for the selected pay period are accurate and complete. 
5. Submit Payroll: Submit the payroll. The payroll status will change to 'Pending.'
6. Download Paper Checks: Once the payroll is in the 'Pending' state, the option to download the paper checks will appear on the Payroll Dashboard. Click to download the check file.
   
7. Print Checks:
   • Use a secure printer and check stock that complies with banking standards.
   • Before printing, double-check the details on each check, including employee name, payment amount, and date.
   • Need help with formatting? Click here for FAQs and Format Guidelines for Printing Paper Checks
8. Distribute Checks: Distribute the printed check to your employees, either in person or by mail.

Tax Handling for Manual Payments

One major advantage of using 7shifts Payroll is that taxes for manual payments are handled automatically. Once payroll is processed, the system will debit the required tax amounts via ACH, ensuring compliance with tax regulations. You don’t need to take any additional steps to manage taxes when issuing paper checks.

This allows you to focus on ensuring your employees receive their payments promptly.