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  1. Salary Deduction
  • Welcome
  • Getting started
    • Availability and Onboarding
      • Light Availability Check
      • Full Availability Check
      • Onboarding
    • Salary Deduction
      • Deduction Instruction
      • Re-running Payroll
      • Deduction Payments and Reconciliation
      • Changes to Employee Status
  • API Reference
    • Authentication
    • Idempotency
    • Webhooks
      • Webhooks
    • Salary Deduction
      • Salary Deduction Data Request
      • Salary Deduction Confirmation Submission
  • Payroll Provider Reference Implementation
    • Light Availability Check
      POST
    • Full Availability Check
      POST
    • Salary Deduction Enablement
      POST
    • Payroll Information
      GET
    • Salary Deduction Employee Data Push
      POST
  • Schemas
    • Availability Check
      • Full Availability Check Request
      • Full Availability Check Response
      • Light Availability Check Request
      • Light Availability Check Response
    • Core
      • ProblemDetails
      • MetaData
      • Paged Response
    • Deduction Instructions
      • Salary Deduction Request
      • Salary Deduction
      • Confirmation Deduction Response
      • Salary Deduction Enablement Response
      • Employee Deduction Push Response
      • Employee Deduction Push Request
      • Salary Deduction Push
      • InstructionFile
      • InstructionItem
    • Payment Account
      • Payment Account
      • Payment Information
    • Payroll
      • Employee
      • Availability Payroll
      • Availability Employment
      • Availability Employer
      • BeneficiaryAccountResponse
      • Salary Deduction Confirmation Data Submission
      • Salary Deduction Confirmation Data Submission Response
      • Salary Deduction Data Request
      • Salary Deduction Data Response
      • Payroll
      • Employee Payroll
      • Employment
      • Employer
      • Pay Date
      • Salary Deduction Enablement Request
      • PayrollScheduleResponse
    • Webhooks
      • Employee Update Payload
      • WebHook
  1. Salary Deduction

Deduction Instruction

About Salary Deduction#

Ontime requests that Payroll Providers instruct deductions into employers’ pay runs. Ontime handles any timing differences (e.g. monthly bills vs. weekly pay cycle). Once RTI is run, the Payroll Provider confirms to Ontime what has actually been deducted. This enables Ontime to reconcile funds.

Assumptions and prerequisites#

Applicants (Employees) have been onboarded.

Flow#

Steps#

1

Trigger events#

Requirements
Trigger Event 1: When the Employer payroll administrator initiates the processing of a pay run on the Payroll Provider platform.
Trigger Event 2: When the Payroll initiation process is re-initiated. Explained below.
If an administrator begins Payroll initiation but ends before RTI Submission, then the administrator returns at a later time and resumes, the Payroll Provider platform may need to re-run Payroll processes to account for any late changes (e.g., an Employee leaving).
Trigger event 3: Pre-pay run Payroll Provider triggered requests.
To mitigate the risk that this fails, the Payroll Provider could submit an additional request to Ontime for the deduction data before the Payroll process is initiated by the administrator. This approach would ensure a version of the deduction data is successfully stored on the Payroll Provider platform, reducing the risk of a complete process failure.
Be aware
Once Trigger Event 1 has occurred it is NOT possible for Trigger Event 3 to occur.
For such subsequent calls within the same pay run where no deduction changes have occurred, the system could respond with “no change,” improving processing efficiency for the administrator
Considerations
Ontime prefers data to be pulled as late in the process as possible, allowing Employees and Billers greater flexibility to adjust deduction amounts. This is addressed in the requirements but Ontime can explore additional solutions that enhance this outcome.
Risk
Payroll Providers MUST mitigate the risk of a failure which leads to no deductions being processed.
2

Ontime Platform Request#

Requirements
The Payroll Provider sends an API call to Ontime to request the deductions to process. The request includes the PayrollId and Pay Date. The Payroll Provider can issue this request multiple times for the same PayrollId and Pay Date, Ontime may return different data with each request if changes have occurred.

API Documentation
Salary Deduction Data Request
Considerations
It is necessary for Payroll Providers to mitigate the risk of a failure which leads to no deductions being processed.
3

Ontime provides Deduction data#

Requirements
Ontime provides the Payroll Provider with data about the single payment to be made and the individual deductions that it relates to:
The response includes details of the total amount to deduct for each Employee as well as metadata and details of the Payment Account to be used.

API Documentation
Salary Deduction Data Request
Ontime optionally supports sharing Deduction data via other channels including SFTP.
4

Payroll Provider Processing#

Requirements
The Payroll Provider communicates Ontime's deductions to the Payroll Administrator via their Payroll Platform.
The Payroll Administrator processes the deductions as part of the normal Payroll Provider platform workflow. This can be handled in one of two ways:
Semi-Automated Process: The Payroll Administrator manually approves each deduction with a mouse click.
Automated Process: The Payroll Administrator opts to trust the deductions feed, allowing all future deductions to be automatically integrated into the payroll run.
5

RTI Submission#

Requirements
Payroll Administrator instructs the Payroll Provider Platform to submit RTI to HMRC.
6

Confirmation of Deductions Report#

Requirements
Following RTI Submission the Payroll Provider MUST call Ontime’s API to confirm the amount deducted for all Employees within the Payroll. Where the confirmed deduction is less than the requested deduction a reason code MAY be provided.

API Documentation
Salary Deduction Confirmation Submission
7

Ontime Ledger Update#

Requirements
Ontime records the confirmed Deduction Data within the Ontime Payments Platform.
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Salary Deduction
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Re-running Payroll