Money movement is a core concept in payroll processing that involves several automated financial transactions between different parties.
Overview#
Money movement is a key concept to understand when implementing payroll features.When your platform processes payroll through Easyteam Embedded, three main types of money movement occur:1.
Employer debits (funds collection)
2.
Employee payments (funds distribution)
3.
Tax payments (compliance and remittance)
Overview of payroll money movement flow
Employer Debits#
Before each payroll run, Easyteam automatically calculates and collects the total required funds from the employer's bank account. This debit includes:Total Employer Debit = Gross Wages + Employer Taxes + Reimbursements
Employee Payments#
Easyteam supports multiple payment methods for distributing funds to employees:Direct Deposit#
The most common method, where funds are automatically transferred to employee bank accounts. This requires valid bank account information, pre-verification of accounts and has a standard ACH processing time (2-3 business days).Paper Checks#
Physical checks can be issued when direct deposit isn't available. Your platform can track check numbers and reconciliation through our API.Cash Payments#
While less common, cash payments can be recorded and tracked for proper tax reporting and compliance.Tax Payments#
One of the most complex aspects of payroll is managing tax payments. Easyteam automatically:Calculates required tax withholdings
Collects funds for taxes during employer debit
Remits payments to appropriate tax authorities
Maintains compliance records
Implementation Considerations#
When integrating payroll features, consider:1.
Timing: Money movement follows specific schedulesEmployer debits occur before payroll processing
Employee payments follow standard ACH timeframes
Tax payments align with filing deadlines
2.
Verification: Bank account validation is criticalImplement proper account verification flows
Handle failed payments appropriately
3.
Error Handling: Money movement can failInvalid account information
Money movement involves real funds and has regulatory requirements. Talk with our team to learn more about the different considerations.
