Pay Now via Direct Debit provides a fast and convenient way to pay your staff. With Direct Debits active, payments can be made directly to your employees, IRD and any other payees via an automated direct debit process, so you don't have any extra steps to worry about on payday.
Activating Payments via Direct Debit
To start making payments with Direct Debit, you'll first need to provide authorisation for us to debit your account. You can do so from within PayHero, by clicking Requires Authorisation in Manage > Settings > Payroll Settings. You'll also need to ensure you've selected Direct Debit as your preferred payment method.
Clicking Requires Authorisation will prompt you to confirm the details of the bank account to be debited, the contact details for Direct Debit notifications, and to authorise Flexitime Limited to debit the account.
Once authorisation has been provided, you'll see confirmation of the authorisation date on the Direct Debit line.
Payments via direct debit are subject to 2-day processing. Faster employee payments require credit approval, which may take up to a month.
Paying Wages
After Processing a Pay Run, you'll see slightly different options depending on whether or not we’ve contacted you to authorise your bank account, and if your account is on 2-day processing or same-day processing.
Contact Required
The first time you process a pay after enabling Direct Debit payments, the confirmation window will show as follows.
To ensure the security of your account we’ll contact you via email and/or phone to confirm some details. Contact will be made to the email address/phone number provided during the authorisation process.
Payments to your employees, IRD, and any other third parties will only be released once verification has been completed, so please ensure you respond promptly.
2-day processing
By default, all direct debit payments are subject to a 2-day processing period. This means there will be a 2-day period between the payment leaving your bank account and the payments being issued to your employees. See 'What time will payments be made to employees?' below for more details.
If this would mean your employees would be paid after your selected pay date, you'll see the following notice when you send a pay:
To accommodate this, we recommend processing your pays at least 2 days in advance of your usual pay date, so that PayHero can schedule the payments to your employees to fall on the normal pay date.
Alternatively, you may prefer our Bank Transfer payment method which has faster turnaround times, or you can apply for same-day direct debit processing - see below.
Same-day processing
Faster employee payments require credit approval. If you'd like to apply for same-day processing, reach out to our team at finance@payhero.co.nz.
If your company has been approved for same-day processing, the Send Pay Confirmation window will show as follows when sending a pay with today's date.
Payments will usually be made to employees on the same day (subject to standard bank processing times). Some delays are possible for transactions processed late at night - see 'What time will payments be made to employees?' below for more details.
Frequently Asked Questions
There is no transaction limit for 2-day processing.
However, there is a transaction limit for same-day clearance of direct debit payments. The default limit is $30,000 per day. This includes all transactions to your employees, IRD, and any other third-party recipients.
Pays exceeding this value can still be paid by direct debit, but will be subject to a 2-day clearance period even if your company has been approved for same-day processing. Please reach out to finance@payhero.co.nz if you wish to apply for a higher same-day clearance limit.
Unlike Payments via Bank Transfer, direct debit payments take up to 3 days to fully clear into our account after they're initiated. This means that in cases where same-day processing is approved, there's up to a 3-day period in which the payment may dishonour after we've already paid the employees. This means setting up same-day processing for your account requires that FlexiTime extends a line of credit to you.
You can contact finance@payhero.co.nz if you'd like to apply for approval for same-day processing.
PayHero makes payments twice a day, in the early afternoon and late evening. When your employees will be paid depends on the pay date, the time of day your pay was sent, and whether your company has been approved for same-day processing.
- Future Pay Dates - If the pay date of the pay is in the future, payments will be made to employees at noon on the pay date.
- 2-day processing - Payments to your employees will be made at noon on the 2nd day after sending the pay (or on the pay date, if later).
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Same-day processing:
- Pays sent before 10am on the pay date will be paid to employees at noon.
- Pays sent between 10am and 7pm on the pay date will be paid to employees at 9pm.
- Pays sent after 7pm on the pay date will be paid to employees at noon the next day.
The exact time employees receive the payment will depend on inter-bank clearance periods.
Yes, each time a pay run is processed using Direct Debit, a notification will be sent to the email address you supplied when you originally authorised direct debit payments. A further notification will be sent once the payments are on their way to your employees. If you need to change this email address, please contact support@payhero.co.nz.
Once your account is authorised to make payments via direct debit, anyone who can send pays (Admins and Pay Cycle Admins) will be able to send the pay and therefore trigger the direct debit payments.
When you make payments using Direct Debits, your IRD payments will be included automatically. These are held in our account and will be forwarded to IRD on your behalf by the due date (usually the 20th of the following month).
See section 3 of our Subscription Agreement for more information.
Yes, you can send a pay before the pay date. The direct debit from your account will be processed right away, and payments to your employees will be made on the specified pay date.
If you discover a mistake in a pay after it's already been sent there are a few different ways you can handle it, depending on the nature of the error. You can learn more here: Fixing a Mistake in a Sent Pay
Direct debit amounts can't be changed, so if you edit the existing pay and the amount to pay changes, you'll need to identify and pay/recoup any differences manually. It's a good idea to download the Employee Pay Details Report before making any changes, so you can refer back to the original details as needed.
You'll also need to pay the difference in the amount of tax to pay directly to IRD - PayHero will display this amount as a warning in the Unpaid Tax tab.
How a dishonoured payment will be handled depends on whether your employees have already been paid by the time we're notified of the dishonour:
If payments to your employees have already been processed - you'll need to make a manual transfer to us for the outstanding amount. You'll be notified of this via email. If payment is not made immediately additional charges may apply.
If payments to your employees have not yet been processed - the payments will be cancelled and you'll need to pay your employees and IRD another way. You'll be notified of this via email.
If your account had been authorised for same-day processing, you'll be moved back to 2-day processing to ensure funds have time to clear before we pay your employees in future.
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