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Required Actions - Operation Requirements

Required Actions 

These operational requirements are mandatory for all franchisees. They form the foundation of compliant, consistent, and accurate payroll processing across the Payroll Vault network. Franchisees are accountable for following these standards to ensure quality, maintain compliance with brand standards, and ensure client trust. 

Payroll Processing Standards 

  • Review these four reports before finalizing payroll (Payroll Summary, Payroll Register, New Employee and Change Audit, and the Exceptions report) 
    Confirm totals, employee data, and tax calculations are correct. Address any missing IDs, errors, or setup issues before submission. 
  • Do not backdate payrolls. 
    Payrolls must be processed in real time to maintain tax and compliance integrity. Proper backdating of payrolls is very rare and should only be done with the assistance of the support or tax team. 
  • Do not run new payrolls until all prior payrolls are loaded and balanced. 
    This includes resolving any errors or issues from prior runs before running the 1st payroll for a new client. 

NSF (Non-Sufficient Funds) Handling 

  • Immediate Notification: Follow the corporate NSF protocol upon notice from NatPay. 
  • Client Status: Move the client to NSF status immediately. 
  • Communication: Use the approved NSF letter template to notify the client. 
  • Repayment Requirement: Franchisee repayment must occur within 24 hours of notification. 
  • Restrictions: Do not resume processing until funds are received and verified. 

Tax and Compliance Requirements 

  • Form 8655: Required for every client before processing payroll. 
  • New Tax IDs: All new businesses (or existing businesses who add a new state) must obtain permanent tax IDs within 90 days of starting payroll.  
  • Applied For / Tax Errors: Review and resolve “Applied For” or rejected ID issues monthly or quarterly to prevent tax filing delays or potential fees. 

Processing Timelines 

  • 5-Day Rule: Payroll must be submitted at least five business days before pay date to ensure on-time processing and funding.  
  • If your office does not have a 5-day window, you must adjust scheduling and communication with clients and NatPay to ensure funding readiness. 
  • Failure to follow this rule can result in delayed payments, NSF, and compliance risks. 
  • Client Onboarding: Follow proper timelines for new client setups. No payroll should be scheduled until all required documentation (including IDs, 8655, and banking verification) is received.