Auto Payroll: How It Works and When to Use It

If you use a payroll service, you may have the option to place a consistent, recurring payroll on an automatic schedule. Auto payroll runs payroll using the schedule and standard pay you set, so you don't have to rebuild and submit the same routine payroll each pay period. You still update payroll when hours, pay, deductions, or employee information changes.

With SurePayroll® By Paychex, you can pay employees and contractors, manage payroll taxes, and use auto payroll when your recurring payroll stays consistent.

What is auto payroll?

Auto payroll is an optional payroll feature where you can process a recurring payroll on your pay schedule, using each person's standard pay and recurring deductions. Instead of initiating the same routine payroll each pay period, you set the information in advance and update it when something changes.

Auto payroll isn't the same as automated payroll software. Payroll software calculates gross pay, withholding, and payroll taxes. Auto payroll is a feature inside some payroll software that automatically processes a scheduled payroll using the information you provide.

Auto payroll isn't available with every payroll service, so it's worth checking whether a provider offers it if automatic recurring payroll is important to you.

For the broader benefits of payroll software, read Is Automated Payroll Worth It for Small Teams?

Payroll patterns that suit auto payroll

Auto payroll fits best when standard pay remains consistent from one pay period to the next. Common examples include:

• Salaried employees paid the same amount each period
• An owner receiving a fixed salary, such as an S-corp owner-employee paying themselves on a set schedule
• Contractors receiving fixed, recurring payments, such as a monthly retainer

When you pay the same people the same amounts on a set schedule, auto payroll reduces the steps you must repeat each pay period. You only need to update the scheduled payroll when something changes.

For example, if you run a small design firm and pay yourself and two salaried staff the same amounts every payday, auto payroll can keep that recurring payroll on schedule without requiring you to initiate it each time.

Salaried doesn't mean exempt from overtime. If a salaried non-exempt employee works overtime, update payroll to include the overtime pay.

What are the advantages of automatic payroll?

For businesses with consistent payroll, automatic payroll reduces the routine steps required to keep each payroll moving on schedule.

• Fewer repetitive payroll tasks. You set standard pay and recurring deductions in advance instead of rebuilding the same routine payroll every pay period.
• A consistent payroll schedule. Payroll runs according to the schedule you set, helping you maintain predictable paydays.
• Changes made when you need them. You make changes when hours, compensation, deductions, or employee information differs for a pay period.
• More attention to payroll exceptions. Instead of initiating every recurring payroll, you can concentrate on reviewing and entering the information that changed.

When does auto payroll need more attention?

Auto payroll needs additional review when the information for an upcoming payroll differs from the standard pay and deductions you set. Update the scheduled payroll when any of the following changes occur:

If you run a mostly hourly team with shifting schedules, you may need to update hours nearly every pay period. In that situation, reviewing and approving each payroll yourself may be a better fit than auto payroll.

If you miss a change before the scheduled payroll processes, the payroll will use the information already entered. When the missed change results in additional wages owed, you may need to issue those wages through an additional payroll run.

How Auto Payroll works in SurePayroll

In SurePayroll, Auto Payroll is an optional feature included in SurePayroll plans. Once you set it up, payroll runs each pay period using your established schedule and standard pay information.

SurePayroll sends you an email reminder before your approval date. You can review your upcoming payroll and make changes up to 24 hours before that date. SurePayroll then submits payroll 24 hours before the approval date and sends a confirmation email after processing.

I love that I can set payroll and forget about it. It is so easy to use.

— Rebecca, Trustpilot review

You can turn Auto Payroll off at any time. The SurePayroll Help Center article Auto Payroll Setup explains the setup requirements and steps.

SurePayroll plans include unlimited payroll runs, including off-cycle runs. That flexibility can be useful when you need to issue a separate payment, such as a bonus outside your regular payroll schedule.

Is auto payroll right for your business?

Auto payroll may be a good fit if you pay the same people consistent amounts across most pay periods. If hours, pay, or deductions change frequently, reviewing and approving each payroll yourself may work better.

With SurePayroll, you can choose the approach that fits how you pay your team.

‍See what's included in each SurePayroll plan.