How does InstaPay affect Payroll Admins?
InstaPay transactions appears in pay runs as a post-tax deduction.
Employment Hero bases InstaPay availability on approved timesheets, or a prorated daily amount (for each work day) for salaried employees.
The calculation used for a pay runs total payment amount in the ABA is:
ABA File Equals = Net Earned Wages + Post-Tax Deductions + Any Other Pay Items
InstaPay transactions by your employees will appear as a Post Tax Deduction in the pay run.
InstaPay is not available on the employees paid date as shown by your generated pay run.
- An employee withdraws a portion of their earned wages via InstaPay.
- Employment Hero sends the funds to the employees’ nominated bank account after the finalisation of the InstaPay request.
- The InstaPay request creates a locked Employment Hero account in the employee's payroll file.
- Employment Hero Payroll creates a post-tax deduction for the withdrawn InstaPay amount in the employees’ payroll file.
- Employment Hero Payroll directs the post-tax deduction into the Employment Hero account.
- A post-tax deduction appears in the pay run for the employee who conducted the InstaPay withdrawal.
- Employment Hero Payroll pays Employment Hero the withdrawn InstaPay amount into the locked Employment Hero account in the employee's payroll file.
This will appear as a payment to Employment Hero on the ABA file.