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• Money movement: Funds are being withdrawn from the employer’s account.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.

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.