Payroll Status Workflow
Understanding the payroll lifecycle from draft to completion.
Every payroll run moves through a series of statuses from creation to completion. Understanding this workflow helps you know what to expect at each stage and who is responsible for advancing the process.
Status Overview
A payroll run can be in one of the following statuses:
| Status | Description |
|---|---|
| DRAFT | Initial state after creation. The payroll run can be freely edited -- add or remove employees, adjust individual items, or correct amounts. No payments are processed. |
| PENDING | Submitted for approval. No further edits are allowed. The run is waiting for an authorized person to review and approve it. |
| APPROVED | Approved by an authorized user. The payroll run is ready for payment processing. |
| PROCESSING | The system is actively processing payments. Do not interrupt this step. |
| COMPLETED | All payments have been successfully processed. Payslips are available for download. |
| CANCELLED | The payroll run has been cancelled. No payments were processed. |
Status Transitions
The following diagram shows how a payroll run moves between statuses:
DRAFT --> PENDING --> APPROVED --> PROCESSING --> COMPLETED
| |
v v
CANCELLED DRAFT (returned for edits)Detailed Transitions
| From | To | Action | Description |
|---|---|---|---|
| DRAFT | PENDING | Submit for approval | Finance user submits the payroll run for review |
| PENDING | APPROVED | Approve | Authorized reviewer approves the payroll |
| PENDING | DRAFT | Return for edits | Reviewer sends it back for corrections |
| APPROVED | PROCESSING | Start processing | Payment processing begins |
| PROCESSING | COMPLETED | Automatic | System completes when all payments are processed |
| DRAFT | CANCELLED | Cancel | Creator or admin cancels the draft run |
| PENDING | CANCELLED | Cancel | Admin cancels the pending run |
Who Can Perform Each Action
Different actions require different levels of authorization:
| Action | Who Can Do It |
|---|---|
| Create a payroll run | Any finance user |
| Edit a draft | Any finance user or the creator |
| Submit for approval | Any finance user |
| Approve | Admin or Finance Manager |
| Return for edits | Admin or Finance Manager |
| Start processing | System (automatic) or Admin |
| Cancel | Admin or the original creator |
The approval step ensures that payroll amounts are reviewed by a senior team member before any payments are processed. This adds an important layer of financial control.
What Happens at Each Stage
Draft
- The payroll run is created with all employee calculations based on their assigned salary schemas.
- You can review each employee's breakdown, adjust items if needed, and ensure everything is correct.
- This is the only stage where edits are possible.
Pending
- The run has been submitted and is locked for editing.
- An authorized reviewer (Admin or Finance Manager) needs to review the totals and individual breakdowns.
- The reviewer can either approve the run or return it to Draft for corrections.
Approved
- The run has been reviewed and confirmed.
- It is now queued for payment processing.
- No further changes can be made at this point.
Processing
- The system is actively processing payments.
- This step runs automatically once processing is triggered.
- Do not attempt to cancel or modify the run during this stage.
Completed
- All payments have been processed successfully.
- Payslips are generated and available for download.
- This is the final state -- completed runs cannot be modified or reversed.
Cancelled
- The payroll run was terminated before completion.
- No payments were made.
- Cancelled runs remain visible in the list for record-keeping purposes.
Completed payroll runs cannot be undone. Ensure all amounts are correct before approving. If an error is discovered after completion, a corrective adjustment must be made in the next payroll cycle.