Heartland debits your company bank account before the check date to ensure employees and taxes are paid timely (when on our Full Tax Service). It is essential to be aware of the timelines and debits.
Payroll Summary Report
The Payroll Summary report provides a breakdown of the funding for your payroll. It can be found in multiple places.
Payroll → Process Payroll → Preview/Process Payroll tab
Before Processing: If you recently entered payroll and are previewing the reports, you’ll see it listed under Last Preview Results in the Payroll Reports dropdown.
Reports → Archived Reports & On Demand Reports
After Processing: If you have already processed payroll, head to the Reports section, where it’s available under both Archived Reports and On Demand Reports.
Here are the important highlights so you are aware of the funding needed for your payroll. On the right side, there are two columns that are important to review.
Amount
Figures under the Amount column are payroll expenses, and you need to have those funds available. However, Heartland will not be collecting those funds. In this example, the total for Checks is under the Amount column, as live checks will be drawn from your company bank account and clear as checks are deposited by employees.
ACH Debit
Heartland will debit figures in the ACH Debit column from your company bank account listed on the report. You’ll see separate debits for the amounts such as Direct Deposit, Tax Liabilities, Payroll Billing, and Third Party Electronic payments, which are most commonly for garnishments withheld. If the amount for your Checks shows in the ACH Debit column, we will debit your company bank account for the total of all the live checks and issue them from a Heartland bank account, which saves time on bank reconciliation.
Total ACH Debit and Impound Date
The Total ACH Debit line shows the Impound Date, which is the day you can expect to see the funds withdrawn from your company bank account.
Total Payroll Funding
The Total Payroll Funding includes the Amount column, which we do not debit, and the total in the ACH Debit column, which we will debit from your company bank account.
🚨 This is the amount to reference to ensure your entire payroll is funded.
Timing of Debits
1 Business Day Before Check Date: Heartland debits the funds from your company bank account 1 business day before the check date.
Impound Date: Banks can attempt the ACH Debit at any time on the Impound Date, and it often occurs in the early morning hours.
2 Business Days Before Check Date: To ensure your Payroll Funding goes smoothly and to avoid any insufficient funds situations, it is a best practice to verify the funds are available at least 2 business days before the check date.
💡 Example: If the check date is on Friday, we recommend the funds be available on Wednesday.
Bank Holidays: These can impact the Impound Date and move it earlier. The Payroll Summary will reflect any adjusted dates.