Net Pay Splits

Split employee net pay into multiple bank accounts

You can split the net pay employees receive into multiple bank accounts. Check supports amount-based net pay splits, meaning that you provide a prioritized list of bank accounts and specify the amounts to be paid to each bank account. Check then distributes the net pay into these accounts in the order you’ve specified, with the last account receiving the remainder of the pay.

As an example, imagine that Kofi has his pay split configuration set as follows:

  • Priority 1: Wells Fargo checking account ending 4431; Amount: $500
  • Priority 2: PNC savings account ending 2982; Amount: $300
  • Priority 3: Capital One savings account ending 6720; Amount: Remainder

If Kofi receives a net pay of $1000, he’ll receive:

  • Wells Fargo checking -4431: $500
  • PNC savings -2982: $300
  • Capital One savings -6720: $200

Now say that Kofi receives a net pay of $600, he’ll receive:

  • Wells Fargo checking -4431: $500
  • PNC savings -2982: $100
  • Capital One savings -6720: $0

Net pay amounts can be split across up to 7 accounts.

Net Pay Splits can be configured via Onboard, Console or the API.

Onboard

You can send the employee a Check Onboard link and ask them to configure their pay splits themselves.

Net Pay Split configuration in OnboardNet Pay Split configuration in Onboard

Net Pay Split configuration in Onboard

Console

You can configure pay splits on the “employee detail” page in Console. You can reach this page by either searching for the employee’s name in the search bar or by entering the company and employee IDs in the URL in the following format: https://console.checkhq.com/companies/{company_id}/employees/{employee_id}

Net Pay Split configuration in ConsoleNet Pay Split configuration in Console

Net Pay Split configuration in Console

API

Net Pay Splits can be configured using the API via the The net pay split object. You can create, read or list these objects.

{
  "id": "nps_lk218jk9082mjkjljT1c",
  "employee": "emp_zGGp6wYcxAeu1Ng8IA7v",
  "deactivated_at": null,
  "deactivated_reason": null,
  "is_default": true,
  "splits": [
    {
      "bank_account": "bnk_R1UMH4Jtbjek10B9TxiX",
      "priority": 1,
      "amount": 100
    },
    {
      "bank_account": "bnk_zGGp6wYcxAeu1Ng8IA7v",
      "priority": 2,
      "amount": 50
    }
  ]
}

The default net pay split ID of an employee is also accessible in the employee object.

{
    "id": "emp_zGGp6wYcxAeu1Ng8IA7v",
    "bank_accounts": [
        "bnk_R1UMH4Jtbjek10B9TxiX",
        "bnk_zGGp6wYcxAeu1Ng8IA7v",
        //…
    ],
    "default_net_pay_split": "nps_lk218jk9082mjkjljT1c",
    //…
}

Bank Accounts and Net Pay Splits

In order to create the right net pay splits, you must have all the relevant bank accounts for the employee already created. Creating a new bank account may automatically create a Net Pay Split in the following circumstances:

  • When an Employee has no Net Pay Split (i.e. it’s a new employee), and a bank account is created, a new Net Pay Split is automatically created for that employee with all their pay going to that newly created bank account.
  • Similarly, if all the bank accounts that an Employee has are disabled (i.e. they cannot be used for payroll), the creation of a new bank account automatically creates a new Net Pay Split for that employee with all their pay going to that newly created bank account.

Additionally, when bank accounts that are already part of a Net Pay Split are deleted or disabled, the Net Pay Split moves to a deactivated state. This state is visible in Console and Onboard visually and can be detected in the API using the deactivated_at and deactivated_reason fields in the Net Pay Split object.

When will changes take effect?

Check ‘locks-in’ the bank accounts that payments will be made to at the time of payroll approval. Changes made to pay splits after the company approves payroll will only be effective during the next pay cycle. Changes made before the company approves payroll will be effective during the upcoming pay cycle.


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