This use case is for managing recurring deductions such as Union Dues, Retirement, and other third-party benefits. Users can set up payroll deductions for a variety of third-party benefits and can create integrated solutions with our Payroll APIs through management of recurring deductions at the worker level. Paychex APIs enable third parties to manage specific pay component (deductions) based on the clients’ utilization of their services. Effectivity (aka Effective-Dating, or Future-Dating) relates to the ability for information to be updated on a specific date in the future and is generally used when a client is aware of a scheduled change to a worker. The functionality for Effectivity is supported for the following worker fields: Demographic, Compensation, Employment, and Earnings & Deductions.
When managing the deductions at the worker level you can set the effectivity to proactively specify the date when the deduction should be enabled and changed
Increases freedom of choice for technology solutions that need to manage worker recurring deductions to integrate with Paychex Payroll
Ability to allow more partners to integrate with Benefit Administration systems
Allows non-Paychex Benefit Administration systems to send Paychex worker recurring deductions
Employee is eligible for benefits
or has had benefit changes made.
Employee will make the
Benefits decision is made in
the provided system of choice.
Benefits deduction amount to be
withheld from payroll is
identified and sent to Paychex
Admin can see the recurring deductions
setup in Paychex that will be
applied during the payrun time.
Employee can view the checkstubs
in Flex app and see the
deduction amount withheld
Relevant APIs used: