Sep '24: Paying-out Payables with regular payroll

In September 2024, we updated our Payables system to pay-out Payables as part of W-2 employees' regular payroll payments automatically, if they have not already been paid-out upon request. Previously, Payables for W-2 employees could only be paid-out on an ASAP basis via an API call.

Since W-2 employees are paid on a regular pay cycle, their Payables are now automatically included as part of their normal payroll payments, with no additional API calls needed beyond simply creating Payables in the first place.

This folds their Payables into their regular payroll payments as earnings, which leads to clean payroll reports, predictable timing and deposit amounts, easy payroll reviews, and simpler pay stubs.

Correspondingly, we updated the behavior of the Request ASAP payout for Payables endpoint, which is used to request as-soon-as-possible payout of Payables owed to workers.

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We don't break integrations.

This is a backwards-compatible change. Even though the behavior of this endpoint has changed, all existing integrations that were paying W-2 employees with Payables have been grandfathered into the previous behavior.

If you're currently relying on the old behavior, we'll be in touch with information about how to adjust your integration to align with the new behavior.

Previously, that endpoint would include Payables for all workers matching the provided filters. Now, that endpoint excludes Payables for any workers who are paid on a regular pay cycle—meaning W-2 employees—by default.

Even so, there are many cases where W-2 employees may need to receive ASAP payout separately from payroll, so you can still request ASAP payout for Payables to W-2 employees using the Request ASAP payout for Payables endpoint: simply set the includeWorkersOnRegularPayCycle parameter to true along with your other filters.

Use the following scenarios to help understand how this change affects paying the different classifications:

You're paying only contractors

You must call Request ASAP payout for Payables in order for any Payables to be paid-out.

You're paying only employees

You can choose whether you want employees' Payables to be paid-out ASAP or with regular payroll. Use the includeWorkersOnRegularPayCycle parameter on the Request ASAP payout for Payables endpoint to control this: set it to true to pay-out employees ASAP instead of with their regular payroll.

You're paying both employees and contractors

You must call Request ASAP payout for Payables in order for any Payables to be paid-out to contractors, and you can choose whether you want employees' Payables to be paid-out ASAP—as they are for contractors—or with regular payroll. Use the includeWorkersOnRegularPayCycle parameter to control this: set it to true to pay-out employees ASAP instead of with their regular payroll.