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Manual Payrolls in Warp
Ayush Sharma avatar
Written by Ayush Sharma
Updated over a month ago

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

  1. Go to the Payroll page on your Warp admin dashboard

  2. Click Create new payroll

  3. Select Manual payroll

  4. Follow the prompts to enter pay details such as period and payday

    1. Note that you if the payday is for past quarters, it may result in some penalties by the tax departments.

  5. 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:

  1. In Warp, create a new manual payrun

  2. Start with the amount you actually paid the employee - this is their Net Pay

  3. 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

  4. 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.

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