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Run an Off-Cycle Payroll

How to run a bonus, correction, or catch-up payroll outside your regular pay schedule

Written by Felicity

Off-cycle payrolls let you pay employees outside your regular schedule — for bonuses, corrections, missed hours, or reimbursements. This article explains when to use them, how to run one, and what to watch out for.


What Is an Off-Cycle Payroll?

An off-cycle payroll is any payroll you run outside your regular pay schedule. Common use cases include:

  • Bonuses or spot pay — rewarding an employee outside a regular cycle

  • Corrections — fixing an underpayment or missed payment from a prior regular payroll

  • Catch-up pay — paying missed hours when an employee was accidentally excluded

  • Reimbursements — covering out-of-pocket expenses via payroll

  • Final paychecks — issuing a termination paycheck when the regular cycle timing doesn't align with state law requirements


How to Run an Off-Cycle Payroll

  1. Go to Payroll in Playground

  2. Click Run Payroll → select Off-Cycle Payroll

  3. Select the employees to include

  4. Choose the earnings type and enter the amount or hours

  5. Set the payday — must be at least as far out as your processing speed allows (e.g., 4 business days for a 4-day account)

  6. Review the Confirm & Submit summary, then click Approve

💡 Off-cycle payrolls follow the same approval deadline rules as regular payrolls. Plan the payday accordingly to give yourself enough processing time.


Earnings Types

When creating an off-cycle payroll, you'll choose an earnings type for each payment:

Earnings Type

When to Use

Hourly

Missed regular hours for hourly employees

Overtime

Missed overtime hours

Bonus

Discretionary bonuses, spot rewards

Reimbursement

Out-of-pocket expenses (e.g., supplies, mileage) — non-taxable

Other Fixed

Flat supplemental pay not covered by other types

PTO Payout

Paying out accrued PTO upon termination or per policy


Catching Up Missed Pay

If an employee was underpaid or missed entirely in a prior regular payroll, use an off-cycle payroll to make them whole:

  1. Create an off-cycle payroll with just that employee

  2. Use Hourly or Other Fixed earnings type for the amount owed

  3. Set a payday that meets your minimum processing lead time

💡 Taxes on catch-up pay are calculated and withheld automatically — you don't need to manually adjust them. The employee's year-to-date totals will update accordingly.


Limitations

Off-cycle payrolls have a few restrictions to be aware of:

  • Cannot run before the first regular payroll. Off-cycle payrolls are only available after at least one regular payroll has been completed on the account.

  • Cannot be set to a past payday. The payday must be in the future and must allow for your minimum processing lead time.

  • No auto-populate of hours. Off-cycle payrolls do not pull in time cards or scheduled hours — you enter all amounts manually.

  • Post-tax deductions may not apply. Certain benefit deductions (401k, health insurance) may not automatically apply to off-cycle payrolls, depending on how they're configured. Review the deductions section before approving.


FAQ

Can I include multiple employees in one off-cycle payroll?

Yes — you can add as many employees as needed to a single off-cycle payroll. Each employee can have a different earnings type and amount. This is efficient when running a company-wide bonus or correcting multiple employees at once.

Will running an off-cycle payroll affect my regular payroll schedule?

No — off-cycle payrolls are completely separate from your regular pay schedule. Your regular payrolls will continue to generate on their normal cadence regardless of how many off-cycle payrolls you run.

Are off-cycle payrolls subject to the same processing speed as regular payrolls?

Yes — off-cycle payrolls follow the same processing speed as your regular payrolls (4-day, 2-day, or next-day). Set the payday at least as far out as your processing lead time requires. You can see your processing speed on the payroll dashboard.

Can I use an off-cycle payroll for a final paycheck?

Yes — and in many cases you should, especially if state law requires final pay sooner than your next regular cycle. Select the terminated employee, use the appropriate earnings types (remaining wages, PTO payout if applicable), and set a payday that meets both your processing lead time and your state's final pay deadline. If you're unsure of your state's requirements, consult your HR advisor.

Do off-cycle payrolls count toward my processing speed upgrade eligibility?

No — only regular payrolls count toward the 10 consecutive successful payrolls needed to qualify for a processing speed upgrade. Off-cycle payrolls don't count positively or negatively toward that threshold, though a failed off-cycle payroll does count as a failure against your account.

Why don't I see an option to run an off-cycle payroll?

Off-cycle payrolls are only available after at least one regular payroll has been completed on the account. If you haven't run your first regular payroll yet, you'll need to complete that first. If you have completed a regular payroll and still don't see the off-cycle option, contact support at [email protected].

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