Recording External Payroll in 7shifts Payroll

This article explains how to record payroll processed outside of 7shifts Payroll (e.g., using a third-party service or previous payroll provider) within your 7shifts account. This ensures accurate tax reporting and ledger management.

Scenario: You have processed a payroll outside of 7shifts Payroll but need to include it in your 7shifts records for accurate reporting.

What to Do: Run an Off-Cycle "Paper Check" Payroll

Key Concept: By creating an off-cycle payroll in 7shifts with the "paper check" method, you can accurately record the payroll information without triggering actual employee payments through 7shifts.

Steps to Run Off-Cycle "Paper Check" Payroll:

1. Create an Off-Cycle Payroll: 
   1. Login to the 7shifts web app as an Admin.
   2. Navigate to Payroll > Run Payroll. 
   3. From the Payroll Dashboard select "Run off-cycle payroll."
      
       
2. Set the Pay Date:
   • Same Quarter: If the external payroll needs to be included in the current quarter (e.g., Q1 2025), ensure the pay date you set for the off-cycle payroll falls within that quarter. This is crucial for accurate quarterly tax reporting.
   • New Quarter: If the external payroll belongs to a previous quarter, see the "Important Notes" section below.
3. Select "Paper Checks" as the Payment Method: This is essential. Choosing "Paper Checks" prevents 7shifts from attempting to deposit funds into employee accounts, as you have already paid them externally.
   
4. Enter Payroll Details: Input the necessary payroll information, including employee pay items (wages, bonuses, etc.) and any applicable deductions.
5. Review and Submit: Carefully review all entered information and submit the off-cycle payroll.

Benefits:

• Accurate Tax Reporting: By recording the external payroll within 7shifts, you ensure that the associated taxes are accounted for in your quarterly filings. Any overpayment of taxes due to this inclusion will typically be credited back by the relevant tax agency during your quarterly filing.
• Comprehensive Ledger Management: The pay items from the external payroll will be accurately reflected in your 7shifts ledger, providing a complete record of your payroll activities.