# Understanding Payroll

{% hint style="success" %}
**AllScale tip:** AllScale’s payroll system runs **automatically**, but knowing what each status means helps you stay in control. Whether it's **setting up funds**, **approving a payment**, or **fixing a failed transfer**, this table walks you through what’s happening and what (if anything) you need to do.

📌 **Why it matters:**

* Avoid missed or delayed payments
* Know when to take action (and when to relax!)
* Keep your team paid on time, every time

💬 *Tip: You’ll receive automatic email notifications whenever your payroll status changes—no need to constantly check back.*

👇 Refer to the table below for a breakdown of each payroll state.
{% endhint %}

<table data-header-hidden><thead><tr><th width="151"></th><th></th><th></th></tr></thead><tbody><tr><td><strong>Payroll State</strong></td><td><strong>What It Means</strong></td><td><strong>Business Action</strong></td></tr><tr><td><strong>Draft</strong></td><td>Payroll is created after the last payroll due date but not yet approved.</td><td>Approve the payroll. If not approved 48 hours before the due date, you will receive an email reminder.</td></tr><tr><td><strong>Approved</strong></td><td>Payroll is approved by the business.</td><td>Ensure sufficient funds before the due date. You can still cancel if needed. You’ll receive an email if funds are insufficient 48 hours prior to the due date.</td></tr><tr><td><strong>Ready</strong></td><td>Payroll is approved, funds are sufficient, and the scheduled pay date has arrived.</td><td>No further action is needed unless you need to cancel. The payment should process within 24 hours.</td></tr><tr><td><strong>Paid</strong></td><td>Funds have been successfully transferred.</td><td>No action needed. Payroll is complete and cannot be reverted. You’ll be notified of successful payment.</td></tr><tr><td><strong>Overdue</strong></td><td>Payroll reached the pay date without sufficient funds.</td><td>Top up your account and retry (moves to Ready), or cancel. You’ll be notified immediately.</td></tr><tr><td><strong>Failed</strong></td><td>Fund transfer attempt was unsuccessful.</td><td>Retry (moves to Ready) or cancel. You’ll receive an email about the failed transaction.</td></tr><tr><td><strong>Cancelled</strong></td><td>Payroll was canceled by the business or admin.</td><td>No action required unless you want to recreate the payroll. You’ll be notified of the cancellation.</td></tr></tbody></table>

#### 🔄 Payroll Flow Overview

This chart shows the **lifecycle of a payroll run** in AllScale.

* **Thick black lines** represent the **optimal path**:\
  `Draft → Approved → Ready → Paid`
* **Grey lines** indicate **edge cases or exception states**, such as:
  * **Overdue**: When there are insufficient funds by the pay date
  * **Cancelled**: When a payroll is manually stopped
  * **Failed**: When the payment transfer is unsuccessful

<figure><img src="/files/EBsVSrXZgGhPFHHjaUDr" alt=""><figcaption></figcaption></figure>


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