Guide: InstaPay for payroll admins


How does InstaPay affect payroll admins?


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InstaPay transactions appear 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.

Helpful Tip

InstaPay is not available on the employees paid date as shown by your generated pay run.

Getting Started

Stage 1: Employee InstaPay withdrawal
  1. An employee withdraws a portion of their earned wages via InstaPay.
  2. Employment Hero sends the funds to the employees’ nominated bank account after the finalisation of the InstaPay request.
Stage 2: InstaPay payroll deduction
  1. The InstaPay request creates a locked Employment Hero account in the employee's payroll file.
  2. Employment Hero Payroll creates a post-tax deduction for the withdrawn InstaPay amount in the employees’ payroll file.
  3. Employment Hero Payroll directs the post-tax deduction into the Employment Hero account.
Stage 3: Pay run
  1. A post-tax deduction appears in the pay run for the employee who conducted the InstaPay withdrawal.
  2. Employment Hero Payroll pays Employment Hero the withdrawn InstaPay amount into the locked Employment Hero account in the employee's payroll file.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.

Stage 4: InstaPay reporting

On Employment Hero Payroll you can run a report to show you any processed InstaPay deductions in a pay run by following the following steps:

  1. Click the Reports menu.
  2. Under Payroll, click on the Deductions Report.
  3. In the Deduction Category, select EH InstaPay Post-Tax Deduction.
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