Manual payroll allows you to pay employees Net Pay directly while Warp handles all tax obligations and compliance records. Here's everything you need to know about this emergency payment option.
What is Manual Payroll?
Manual payroll is when you pay an employee's Net Pay directly via check or wire transfer, while Warp continues to:
Calculate and collect all required tax withholdings
Process tax payments to authorities
Maintain accurate records for tax filings and W-2s
Track year-to-date totals
When to Use Manual Payroll?
This option is typically used in time-sensitive situations, such as:
Emergency termination payments
Immediate payment requirements
When same-day payment is needed outside of normal direct deposit timelines
Recording Manual Payments
Even though you've paid the employee's net wages directly, it's crucial to record the manual payrun in Warp because:
Employee tax withholdings still need to be processed
Employer tax obligations must be paid
Accurate records are required for tax filings and W-2s
Year-to-date wage tracking must be maintained
How to Create a Manual Payroll
Go to the Payroll page on your Warp admin dashboard
Click
Create new payroll
Select
Manual payroll
Follow the prompts to enter pay details such as period and payday
Note that you if the payday is for past quarters, it may result in some penalties by the tax departments.
Review the Net Pay amount - this is what you'll need to pay the employee directly (or have already paid in case of recording past a payment, see next section!)
Recording Past Manual Payments
If you've already paid an employee outside of Warp, follow these steps to record it properly:
In Warp, create a new manual payrun
Start with the amount you actually paid the employee - this is their Net Pay
You'll need to adjust the Gross Pay amount until it results in the correct Net Pay
This may take some trial and error
Start with their usual gross pay and adjust up or down
Tax withholdings will automatically recalculate each time
Continue adjusting until the calculated Net Pay matches what you paid them
Remember: Your goal is to find the Gross Pay amount that results in the exact Net Pay you've already given to the employee. This ensures all tax calculations and withholdings are accurate.