Understanding Payroll Statuses

Understanding payroll statuses helps you know what actions are possible at each stage, and when money is actually being moved. This article outlines each status in 7shifts Payroll and what it means for your team.

Run Payroll (Draft)

• When it occurs: As soon as a payroll is created, it starts in the Draft state.
• What you can do:
  • Make full edits (add/remove employees, adjust wages, hours, etc.).
  • Delete the payroll if needed.
• Money movement: No money is moved in this state.

Pending

• When it occurs: After the payroll is submitted.
  • This status is temporary and will automatically advance to Processing 60 minutes after approval/submission.
• What you can do:
  • No edits or previews are allowed unless the payroll is reopened.
  • To reopen: Click the 3-dot menu View Payroll Reopen and Edit. This will return the payroll to Draft.
  • Note: Reopened payrolls must be resubmitted manually. They do not auto-submit.
• Money movement: No money is moved in this state.

Processing

• When it occurs: 60 minutes after approval/submission.
• What happens:
  • An ACH debit transaction is submitted to withdraw the employer’s cash requirement.
  • Status changes to Processing once the debit is submitted.
  • The payroll is now locked and cannot be reopened or edited.
• Money movement: Funds are being withdrawn from the employer’s account.

Paid

• When it occurs: After the employer’s debit transaction completes (typically 2–3 business days).
• What happens:
  • ACH payments are sent to employees and contractors.
  • Status updates to Paid once all payments are complete.
• Money movement: Funds have been successfully sent.

Note: For 2-day and next-day payrolls, employee payments may be sent before the employer debit fully clears.

Partially Paid

• When it occurs: One or more employee or contractor payments fail after submission.
• What happens:
  • Failed payments are flagged.
  • Status changes to Partially Paid.
  • Once all failed payments are resolved, the status returns to Paid.
• Money movement: Some payments were successful, others failed.

The most common cause of a partial failure is invalid or outdated employee direct deposit information. Admins can resolve this from the payroll dashboard without reprocessing the entire payroll run.

1. Ask the affected employee to update their direct deposit information in 7shifts. They can follow the steps in Employee Guide: Update your 7shifts Payroll Payment Method.
2. Once the employee confirms their information is updated, go to Payroll and open the affected payroll run.
3. Select View Payroll. The affected employee shows a Failed status.
4. Click Retry payment next to the employee's name.
5. In the Retry payment dialog, choose one of the following options:
   • Retry Direct Deposit: Reprocesses the payment to the employee's updated bank account. An active bank account is required.
   • Refund and Pay with Paper Check:Pay the employee manually and receive a refund for their net pay within 1–2 business days. To confirm, check Stop payment and send funds back to me, then select Refund payment.

Failed

• When it occurs: The employer debit transaction fails (e.g., due to insufficient funds).
• What happens:
  • Status changes to Failed.
  • Check pauses in-progress employee or contractor payments, if possible.
  • Future payrolls cannot be approved until the issue is resolved.
• Money movement: No funds were successfully moved.

Note: For 2-day and next-day payrolls, employee payments may still go out before the debit failure is detected.

Void

• When it occurs: A payroll is marked as Void when it has been fully reversed after being processed. Voids can occur on payrolls with a Paid, Partially Paid, or Failed status.
• What happens:
  • The original payroll in your Payroll History will be clearly labelled with a Void indicator alongside the original status.
  • Void payrolls are read-only and cannot be edited or resubmitted.
  • From your Payroll History, you can download journals for the void payroll and the original payroll to understand the full picture and reconcile any discrepancies.
  • If pay needs to be reissued after a void, an off-cycle payroll must be created separately.
• Money movement: Voiding offsets wages, taxes, and deductions from the original payroll with negative amounts — but does not automatically reverse payments already sent.

Note: If wages have already landed in employee accounts, ACH reversals must be handled separately and are not guaranteed. Unpaid tax liabilities from the original payroll will be refunded to the employer where possible.