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Funding payroll via wire

Fund payroll quickly and securely via wire transfers.

Overview

Wire (aka FedWire) is a method of moving money from one bank account to another in the US. Wires settle same day and are irrevocable (meaning that once the money is sent, it can't be retrieved). Wires are convenient for funding payrolls as soon as possible, but they come with risk.

Benefits of funding payrolls by wire

Because wires settle faster than ACH, they can be used in scenarios where speed is necessary. Most commonly, they allow employers to:

  • Fund payroll later: Payrolls can be funded via wire as late as 4:00pm ET on payday, and still have payments settle in employees’ bank accounts on the payday. If an employer misses the approval deadline to fund a payroll by ACH, they might want to fund the payroll by wire to ensure their employees still get paid on payday.
  • Resolve failed funding: If an employer experiences a failed funding, Check encourages them to fund the payroll via wire. Check will reinstate the company to "good standing" as soon as the wire is received. However, if the employer instead resolves the failed funding via ACH, it takes at least three business days to return to good standing, which could delay the employer's next payroll. See Failed Funding Guide for more information about failed fundings.

How to fund payrolls by wire

Payrolls in Eddy can be funded by wire by clicking the three dot menu in the run payroll flow and selecting the Change funding method menu option.

Sending the wire

Note that Eddy does not initiate the wire transfer. You must communicate with your bank to wire funds to Eddy, using the unique wire details for their transaction. To ensure timely processing and reduce risk, wires must:

  • Be for the exact amount specified
  • Use the exact unique routing and bank account

If funds are wired to the wrong account, the employer could lose the full amount of their payroll.

Since Eddy does not initiate the wire transfer, Eddy needs to wait for the incoming funds and then reconcile them against the correct payroll. Depending on when you communicates with your bank, this could take several hours. Funds must be received and reconciled by specific times to ensure timely payment of Employees:

  • To ensure Employees are paid by 8:30am ET on payday: Wired funds must be received by 5pm ET the day before payday.
  • To ensure Employees are paid by 6pm ET on payday: Wired funds must be received by 4pm ET on payday.

To reduce risk of paying Employees late, wires should be initiated 2-4 hours before the specified cutoff times.