Off-Cycle Pay Runs allow payroll to be processed outside the established Payroll Calendar. They are created manually from the Payroll Overview page when a payment needs to be issued between regular pay cycles — such as a bonus, correction, or termination payout.
Off-cycle pay runs start with no employees pre-populated. Employees must be added manually after the pay run is created, either by importing earnings and deductions or by using the Add Employees button.
Off-Cycle Pay Run Window
The Off-Cycle Pay Run window sets the initial parameters for the pay run.
Select Create to create the pay run.
Adding Employees to an Off-Cycle Pay Run
Because off-cycle pay runs start with a blank slate, employees must be added after the pay run is created. There are two methods:
Import earnings and deductions
Use the Imports button to upload a file containing employee earnings and deductions. This adds employees and their pay data in a single step.
For detailed steps, see Importing Earnings and Deductions.
Add employees manually
Use the Add Employees button to manually select and add employees to the pay run. Earnings and deductions can then be entered directly on each employee record.
Separated employees do not appear in the default employee list. To include a separated employee, select the Show Separated Employees checkbox when adding employees.
Editing Tax Method and Pay Date
After the pay run is created, Tax Method and Pay Date can be updated directly on the pay run page. Both fields become locked once the pay run is finalized.
Off-Cycle Pay Run Details
This screen shows all employee payments in the pay run and any related issues. Review all entries and resolve any issues before submitting.
Select Submit to submit the pay run.
Journal Entries
Two types of journal entries in R365 Accounting are associated with pay runs: payroll journal entries and funding journal entries.
Payroll Journal Entries
Payroll journal entries contain estimated amounts from the DSS, actual amounts from the approved pay run, and the GL distribution difference. They are created based on the selected payroll company and payroll clearing settings. For more detail, see Funding and Payroll Journal Entries.
Funding Journal Entries
Funding journal entries record the bank transaction when a pay run is funded. How entries are created depends on the payment method:
Tips paid by check — The payroll journal entry debits and credits Tips Payable to reflect that the payment has been created but not yet cleared. Once the check clears, the funding journal entry debits Tips Payable and credits the bank account to complete the transaction.
Direct deposit — Tips Payable is debited and the bank account is credited in a single entry. No additional step is needed.