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Planview Customer Success Center

How does the payroll lag work?

Question
How does the payroll lag work?

 

Answer
After the “first” payroll end date a payroll cycle (or period) starts, which is defined by the “pay schedule”, therefore all other “payroll end dates” after the first one is calculated with reference to the first payroll end date using the pay schedule value. In order to determine whether the user can edit the previous period, the payroll lag value is used.

For example:

  • if the pay schedule is weekly then the “payroll end date” is the end of previous week. If the payroll lag is 2 then the user can edit the previous payroll period (previous week) only in the first 2 days after the payroll end date, i.e. the first 2 days after the end of last week (namely, the first 2 days of the current week).
  • if the pay schedule is monthly then the “payroll end date” is the end of previous month. If the payroll lag is 10 then the user can edit the previous payroll period (previous month) only in the first 10 days after the payroll end date, i.e. the first 10 days after the end of last month (namely, the first 10 days of the current month).

The payroll lag is not related to closed periods which do include non-working days.

The payroll lag does not include any non-working days and only interacts with the payroll cycle.