Purpose
Over an employee's time with you, payroll details change: pay rates, pay groups, withholdings, bank accounts, addresses. This guide covers the updates employers make and what UZIO does with the effective dates, especially proration when a change lands mid-pay-period, and what each change alters on the paycheck, the tax filings, and the W-2.
When to use this: for lasting changes to the employee's payroll profile. If you only need to adjust one pay run (a one-off amount, a blocked tax, a stub note), use the run's Payroll Grid Tools instead. Permanent change here, this-run-only override there.
Who can do this: Any user whose role includes the Payroll permission, or the employee-level payroll permission for individual records. This is usually the Employer Admin, but other admin roles can be granted the same access.
Tip: Many of these updates are self-service for employees (withholding, direct deposit, address) through their own portal, and federal W-4, state withholding and direct deposit are also available in the UZIO mobile app. Send unregistered employees a registration link so they can manage these themselves. You only need to intervene for employees who cannot use self-service.
What each update changes
| Update | Where | What changes downstream |
|---|---|---|
| Pay rate, weekly hours, pay type | Employee profile, Job or Compensation section | Gross pay from the effective date, with proration if mid-period. |
| Pay group | Employee profile, Job section | Pay frequency, pay dates, and which pay run the employee appears in. Can create a gap or overlap (below). |
| Federal or state withholding | Employee payroll record, withholding tabs | Tax withheld from the next processed payroll. Wages still report on returns and the W-2. |
| Payment method or bank account | Employee payroll record, Payment Method tab | Where net pay goes from the next processed payroll. |
| Earnings, deductions, contributions | Employee payroll record tabs | Paycheck lines and W-2 boxes from the next processed payroll. |
| Workers' comp code | Employee payroll record, Workers' Compensation tab | Which class the employee's wages report under. An invalid code for the work state blocks payroll. |
| Home or work address | Employee profile | State and local taxes withheld. A new state needs a state tax setup. |
| Hire or termination date | Employee profile | Automatic proration of the first or last pay period. |
Pay rate changes (salary or hourly)
Enter the new rate with its effective date. What happens depends on where that date falls:
- Effective at a pay period start: the new rate applies to the payroll beginning that day.
- Effective mid-period, hourly employees: UZIO prorates automatically based on the old and new rates within the period.
- Effective mid-period, salaried employees: UZIO prorates based on days worked at each salary. See Understanding Salary Proration.
- Effective mid-period, some change types: UZIO applies the update from the next period and tells you to calculate prorated pay for the partial stretch yourself. Read the on-screen message carefully. It states the exact date range you must handle, and you pay it in the run or via a Special Payroll.
Warning: If payroll is already initiated for the period, the revised rate does not flow in. You will see "Payroll for {period start} - {period end} is already initiated. If you want the revised {change} to be applied in the initiated payroll, you must cancel and re-start it." Cancel and restart the run for the change to apply, or let it apply next period.
Weekly hours and pay type changes
- Changing weekly hours (or hours and rate together) triggers a confirmation to verify the employee's regular hours and wages are accurate afterward.
- Switching pay type (salaried to hourly or back) works the same way: effective-dated, with a prompt to double-check hours and wages.
Pay group (pay frequency) changes
Changing an employee's pay group is effective-dated and can create a coverage seam:
- Gap: the employee belongs to no payroll for a date range. You must pay those days via a regular or special payroll.
- Overlap: the employee is included in both payrolls for a range. You must adjust wages so they are not double-paid.
UZIO warns you at save time with the exact dates. Plan pay group moves to land on aligned period boundaries when possible.
Tax withholding updates (on behalf of an employee)
For employees who cannot use self-service, you can update their federal and state withholding from their payroll record (see Setting Up Employee Payroll for the tabs). Remember the pre-2020 W-4 rule: after the initial save, changes must use the 2020 version.
Note: Marking an employee exempt from federal withholding stops UZIO from calculating, withholding, or remitting any federal income tax. Wages are still reported on the quarterly 941 and the W-2, and the employee may owe tax at filing time. Use it only when the employee's W-4 legitimately claims exemption.
Direct deposit changes (on behalf of an employee)
Update the employee's Payment Method tab with the new account details. Changes apply to the next payroll processed after saving. A payroll already initiated keeps the payment method it started with. Verify routing and account numbers against a voided check. If the employee is enrolled in DailyPay, the tab is locked until they cancel DailyPay. See Earned Wage Access (EWA) Integrations.
Specialized earnings, deductions, and contributions
Assign or adjust employee-specific items from the corresponding tabs on the employee's payroll record. Only items that exist at the company level are available. Create missing items there first (earnings, deductions, contributions).
Workers' comp codes and address changes
- Assign or change the employee's workers' compensation code from your company-level codes. See Setting Up Workers' Compensation Codes.
- Address changes can affect state taxation. If the employee moves to or starts working in a new state, make sure a work location and state tax setup exist for it. See Adding State Tax Information.
Hire and termination dates
Regular hours and wages are automatically prorated for the first and last pay periods based on hire and termination dates. For the full separation process, including final pay timing and PTO payout, see Terminating an Employee.
Related articles
- Setting Up Employee Payroll
- Payroll Grid Tools: this-run-only changes
- Understanding and Setting Up Pay Groups
- Running a Special Payroll: the fix for gaps created by mid-cycle changes
- Understanding Salary Proration
- Terminating an Employee
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