This use case is for managing recurring earnings (such as stipends of mobile phone, parking, auto, etc. or pre-determined amounts such as retirement matching), as well as deductions (such as union dues, retirement, and other third-party benefits). Users can set up payroll earnings and deductions for a variety of third-party benefits and can create integrated solutions with our Payroll APIs through management of recurring earnings/deductions at the worker level.
Paychex APIs enable third parties to manage specific pay components 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 earnings/deductions at the worker level you can set the effectivity to proactively specify the date when the earning/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 or recurring earnings
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 earnings (amounts to be added) and deduction amounts (to be withheld)
from payroll is identified and sent to Paychex
Admin can see the recurring deductions and earnings
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 and earnings added
Relevant APIs used: