Accounting for Cycle Payments in your Payroll System

Entering Cycle Payments in your Payroll System 

Prior to submitting a Payment to an employee in DailyPay's Cycle product, you should enter the payment into your payroll system as an off-cycle payment to ensure taxes and deductions are accounted for before the payment is processed by DailyPay.

Since DailyPay will be funding the payment immediately, ensure the off-cycle payment is not funded via payroll. The process in your payroll system should NOT send a payment to the user and should not show up on the Net Earnings File. 

Creating a Cycle Payment in the DailyPay Portal 

Once you have created the off-cycle payment in your payroll system, you are able to send the net pay amount via DailyPay's Cycle Product. The payment will be sent directly to the user. 

  • If the Cycle payment is sent to an employee via the DailyPay Account (DPA), DailyPay will pass those funds through to the employee and it will not be included in the employee's available balance.
  • If a cycle payment is sent to a non-DPA account, the payment will not be reported on the net earnings file. 


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