This article is about Justworks PEO. What product am I using?
Justworks makes it easy to schedule payments to employees, contractors, and vendors. Admins with the proper permissions will see "Pay" in the left-hand side menu upon logging in. You may also click "Make a payment" on the main dashboard.
You’ll see the different pay types that you can schedule to your employees here. Common pay types include off-cycle salary payments, supplemental payments (like bonuses and commissions), and expense reimbursements.
Scheduling Payments
Once you select the pay type you want to schedule, you'll land on the setup page. In this example, we'll walk through scheduling a bonus payment.
On the first step, you'll enter your pay details and employee amounts all in one place. Here's what to fill in:
- Pay date and delivery method: For bonus payments, you can also select the physical check option. Learn more on the Supplemental Payments page.
- Payment settings: Enter your payment work period start and end dates. These dates won't affect how the payment is taxed, but they'll appear on your invoice and your employee's paystub. Align them with the pay period in which the additional payment was earned. Note: start and end dates can't be the same day.
- Deduction settings: If your company offers a 401(k) through Justworks with Empower, the only options are "All Deductions" and "Only 401(k) deductions" on the pay types that are subject to any 401(k) deductions the employee has set up.
- Note (optional): Attach a note to the payment if needed.
- Recipients and amounts: Select recipients and enter each payment amount. You can filter the list by department, office, and more.
There are a few extra settings that apply to certain pay types that you can read about on the Supplemental Payments page.
When you're ready, hit "Continue" to review the payment. Then review the details one last time click "Submit."
You'll see a confirmation page showing when you can edit the payment, when we'll debit your company's bank account, and when recipients can expect to receive it.
Editing & Cancelling Payments
If you need to edit or cancel a payment, navigate to Pay and click "Off-cycle payments."
You can either edit the payment or cancel it outright by clicking either the pencil icon or the trash can icon. When you select ‘edit’, you’ll be led back through the same workflow as when the payment was originally scheduled, but you'll see the relevant member information throughout the flow.
Pay Types
Contractor Pay
You can schedule payment to your company’s contractors within Pay or by viewing their profile and selecting the ellipses, then clicking "Schedule a payment."
If you have questions about how to classify your contractors, you can visit our Contractors article. Otherwise, you can follow Scheduling + Recording Contractor Payments for a step-by-step guide on how to send and record 1099 payment.
Expense Reimbursement
Admins can use this pay type to reimburse employees and contractors for business expenses. Keep in mind that these payments are not taxable, and not tracked as taxable income. Generally, you should ensure that the expenses you’re reimbursing are valid and you should have documentation that these expenses were incurred by the employee or contractor.
You can read more at the Expense Reimbursements article.
Off-cycle Salary
You can schedule a one-off payment for an employee if you miss regularly scheduled payroll. These payments are not considered supplemental payments, which means that they are not taxed at a flat 22%; rather they are taxed as ordinary income.
If you have missed more than one pay period, it's important to schedule an off-cycle payment for each missed pay period rather than a single lump sum so that taxes are calculated correctly.
For example, if an employee should have been paid in April but was not, then you would schedule two off-cycle payments: One for the period April 1-15 and a second for the period April 16-30. This will result in the correct tax calculation.
Other Supplemental Pay
If you didn’t see the supplemental pay type you need, use this to pay an employee supplemental pay. This is pay that’s in addition to your employee’s regular salary or wages.
Owner's Draw
Use this pay type to send owners draws’, to owners of your business. Keep in mind that these payments are not taxed.
If you need help deciphering whether a payment should be classified as an owner’s draw, you can refer to Understanding Owner’s Draws.
Otherwise, you can view Scheduling Owners’ Draws for a step-by-step walkthrough of how to schedule this payment.
Tips
Use this pay type to pay out employees for cash and credit card tips that your business accepts.
Admins with permissions can schedule tip payments at any time. These tips are taxable, and will be taxed as regular income, similar to off-cycle salary payments.
Miscellaneous Non-taxable
Use this pay type for other non-taxable payments that don’t fit under the characteristics of reimbursements or contractor/vendor pay.
Retroactive Pay
Admins should use the retroactive pay type when needing to schedule pay to a worksite employee back wages attributable to pay periods during which the employee was on Justworks' platform.
This payment type should not be used to pay employees for any time worked prior to their Justworks start date, or prior to the company's premiere date.
Keep in mind that retroactive payments are taxed at the supplemental rate, with a 22% flat federal withholding rate.
Taxable Moving Expense
Admins can schedule taxable moving expenses for relocation expenses that are fully taxable as earnings. These payments are often scheduled for employees who relocate to join your company.
Taxable moving expenses are also taxed at the supplemental rate, with a 22% flat federal withholding rate.
Fringe Benefits
If you have fringe benefits that you provide to your employees outside of Justworks, you can record them by going to the Payments Center and selecting 'Record fringe benefit.' To understand that workflow and the basics of fringe benefits, refer to Fringe Benefits.
Is there an Additional Cost to running an Off-Cycle Payment?
There are no additional fees for running an off-cycle payroll unless you are paying out terminated employees, in which case admin fees for those employees may still apply for the period worked.
Important Information about Payments Made Outside of Justworks
If you miss a payroll submission or need to pay outside the platform, it is critical to record payments properly so taxes are withheld and reported correctly.
Manual/external payments
Justworks will not have any record of pay if you pay employees directly by check or outside the system. To ensure accurate W‑2 reporting and tax remittance, work with Support to record a manual/external payment so the appropriate taxes are calculated and remitted. See more on the Manual Payments page.
Late Reported Payments
Customers are required to report pay information accurately and on time in order for Justworks to collect and remit funds to proper government agencies by their respective deadlines. If a payment is recorded retroactively, late fees may apply due to late tax remittance requirements. See more on the Late Reported Payments page.
Equity and taxable events
If a taxable equity event occurs (e.g., option exercise, RSU vesting with sell‑to‑cover), notify Justworks so we can record the wages and withhold properly. For former employees, we can record a manual payment to capture and remit the required taxes, but timing can affect penalties or late fees.
No retroactive exemptions
Changes to tax exemption statuses (federal or state) cannot be applied to paychecks already processed.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.