How does InstaPay affect Payroll Admins?
InstaPay transactions populate 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
Employee InstaPay Withdrawal
- An employee withdraws a portion of their earned wages via InstaPay.
- Employment Hero sends the funds to the employees’ nominated bank account after the InstaPay request has finalised.
InstaPay Payroll Deduction
- The InstaPay request creates a locked Employment Hero account in the employee's payroll file.
- HeroPay creates a post-tax deduction for the withdrawn InstaPay amount in the employees payroll file.
- HeroPay 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.
- HeroPay pays Employment Hero the withdrawn InstaPay amount into the locked Employment Hero account in the employee's payroll file.
Important: This will appear as a payment to Employment Hero on the ABA file.
On HeroPay you can run a report to show you any processed InstaPay deductions in a pay run by following the following steps:
- Click the Reports menu.
- Under Payroll, click on the Deductions Report.
- In the Deduction Category, select EH InstaPay Post-Tax Deduction.