Before approving payroll, it's important to understand exactly how much will be debited from your account and whether any credit limits apply. This article explains how your cash requirement is calculated, what's excluded, and how to handle situations where you exceed your credit limit.
What Is the Cash Requirement?
The cash requirement is the total amount Playground will debit from your bank account to fund a payroll. It is not the same as your total payroll cost.
The cash requirement equals your payroll total minus certain exclusions. This means the debit is often lower than the gross wages you're running.
You can always see the exact cash requirement on the Confirm & Submit page before approving a payroll.
What's Excluded From the Cash Requirement
The following items reduce the cash requirement — meaning Playground debits less than the full payroll total for these:
Exclusion | Why It's Excluded |
Manual payments | You're paying the employee directly (check, cash, Zelle) — Playground doesn't debit for these |
Pre-tax benefit contributions | Employee-elected pre-tax deductions (e.g., 401k, HSA, FSA) reduce gross wages before the debit is calculated |
Post-tax deductions collected by Playground | Deductions like garnishments or post-tax benefit contributions that Playground remits on your behalf are included in a separate debit, not the main cash requirement |
💡 Always verify your cash requirement on the Confirm & Submit screen and ensure that amount is available in your linked bank account before clicking Approve.
Credit Limits
For accounts on accelerated ACH processing (2-day or next-day), Playground extends credit to fund employee payments before debiting your account. To manage risk, a weekly credit limit applies.
Processing Speed | Weekly Credit Limit |
2-day ACH | $200,000 per week |
Next-day ACH | $350,000 per week |
4-day ACH (standard) | No credit limit — debit occurs before employee funds are sent |
The credit limit resets weekly. If a single payroll exceeds the limit, you'll need to use one of the options below.
If You Exceed Your Credit Limit
If your payroll cash requirement exceeds your weekly credit limit, you have three options:
Option 1 — Switch to 3-day or 4-day ACH for this payroll
No credit limit applies on 4-day ACH. On the Confirm & Submit page, you can change the processing speed for this payroll to 4-day, which will adjust the payday accordingly. This is the simplest option if timing allows.
Option 2 — Fund via wire transfer
Wire the full cash requirement to Playground before the payroll is processed. Wire instructions are available in the payroll flow when you select this option. Wire must be received by 8:00 PM Eastern. A $100 wire fee applies.
Option 3 — Pay some employees manually this cycle
On the Review Employee Pay step, switch select employees to Manual payment to reduce the direct deposit total below the credit limit. You'll pay those employees directly by check, cash, or Zelle for the net pay amount shown.
Qualifying for a Higher Credit Limit
Credit limits may increase over time as your account demonstrates a strong payment history. To qualify for a credit limit upgrade:
Run at least 10 consecutive successful regular payrolls with no failures
Maintain a positive account standing for 90+ days
Contact your account manager or email [email protected] to request a limit review
💡 Credit limit increases are not automatic — you need to proactively request a review once you meet the criteria.
FAQ
Where do I find my cash requirement before approving payroll?
Where do I find my cash requirement before approving payroll?
On the Confirm & Submit page, the cash requirement is displayed prominently before you click Approve. This is the exact amount that will be debited from your bank account. Make sure this amount is available in your account at the time of the debit (which occurs at the approval deadline, not when you click Approve).
When exactly does Playground debit my account?
When exactly does Playground debit my account?
The debit occurs at the approval deadline — not when you click Approve. For example, on 4-day processing, the debit goes out 4 business days before payday. If you approve early, the debit still happens at the scheduled deadline time. This means you need your funds available by the approval deadline, not necessarily the moment you click Approve.
Does the credit limit apply to off-cycle payrolls?
Does the credit limit apply to off-cycle payrolls?
Yes — the weekly credit limit applies to all payrolls processed through accelerated ACH (2-day or next-day), including off-cycle payrolls. If you're running multiple payrolls in a single week, keep track of the combined total against your weekly limit.
What happens if I approve a payroll that exceeds my credit limit?
What happens if I approve a payroll that exceeds my credit limit?
Playground will warn you before you approve if your payroll exceeds your credit limit. You won't be able to proceed without selecting a resolution — either switching processing speeds, wiring funds, or paying some employees manually. If you're already past the approval screen and into processing, contact [email protected] immediately.
Do taxes count toward the cash requirement?
Do taxes count toward the cash requirement?
Yes — employer and employee taxes are included in the cash requirement. The full cash requirement covers: employee net pay, employee tax withholdings, and employer payroll tax contributions. Pre-tax deductions reduce the taxable wage base, which in turn reduces the total taxes and cash requirement.