Glossary
Off-cycle payroll
A payment run processed outside the regular scheduled payroll cycle to deliver wages, bonuses, corrections, terminations, or other one-off payments between scheduled runs. Off-cycle runs use the same tax-withholding, social-charge, and statutory-reporting mechanics as the regular cycle but are processed on a separate date.
Off-cycle payroll is a payment run processed outside the regular scheduled cycle to deliver wages, bonuses, corrections, or terminations between scheduled runs.
For global payroll teams, the practical question isn't whether you can run off-cycle. It's how the same tax-withholding, social-charge, and statutory-reporting machinery as the regular cycle gets rebuilt for a one-off payment, and what it costs in fees and team time.
The UK files an additional FPS through HMRC under PAYE71000 rules. The US runs supplemental wage withholding at 22% flat under IRS Publication 15-A, with employer FICA on top.
France triggers a solde de tout compte within 24 to 72 hours of any termination under Code du travail L1234-20, irrespective of the regular pay date. Each route uses the regular gross-to-net engine but on a separate processing date with separate filings.
When you actually need an off-cycle run
Most off-cycle payments fall into one of eight categories. Each has a different cycle treatment, tax exposure, and typical fee impact.
| Trigger | Why it goes off-cycle | Common timing |
|---|---|---|
| Final pay on termination | Statutory deadline shorter than next regular run | Same day to 72 hours, country-dependent |
| Sign-on bonus | Paid before first regular cycle | Day 1 to day 14 of employment |
| Spot bonus or commission | Approval timing falls outside cycle close | Mid-cycle, manager-driven |
| Payroll correction | Under or over-payment from prior cycle | Within 1-2 weeks of error |
| Severance or redundancy | Tax-treatment isolation; cash timing | Often same date as final pay |
| PILON | Cycle closes before notice period ends | Immediate on termination decision |
| Backpay | Retroactive salary adjustment | Within cycle after approval |
| Expat or mobility allowance | International assignment lump sum | Assignment start or milestone |
The PILON case overlaps with notice-pay treatment. See the PILON entry for the full per-country tax position on notice pay made outside the regular cycle.
Corrections versus genuine new payments
Payroll corrections need a particular caveat in the UK. Section 13 of the Employment Rights Act 1996 treats any deduction not authorised in writing as an unauthorised deduction.
An over-payment claw-back via an off-cycle adjustment usually needs the worker's explicit written consent before the deduction posts, or the employer carries the over-payment to the next regular cycle and recovers it formally.
Withholding rules that change for one-off payments
Off-cycle payments use the same withholding engine as the regular cycle, but the tax mechanics shift in two ways: supplemental rates in the US, and cumulative recalculation in the UK.
| Country | Method | Rate / rule | Source |
|---|---|---|---|
| US (federal) | Supplemental flat OR aggregate | 22% up to $1m; 37% above; aggregate runs through W-4 | IRS Pub 15-A |
| US (state) | State-specific supplemental rate | CA 10.23% bonuses, NY 11.7%, others vary | State tax codes |
| UK | Cumulative PAYE | Recalculated against year-to-date earnings | HMRC PAYE Manual |
| France | Salary-equivalent with full charges | 22-27% employer charges on top | Code du travail |
| Germany | Sonstige Bezüge (other earnings) | Five-step annualisation method | EStG §39b |
US supplemental wages in detail
IRS Publication 15-A sets two methods. The flat-rate method withholds 22% on supplemental wages (bonuses, commissions, severance) up to $1m per employee per year, and 37% above that threshold.
The aggregate method adds the supplemental amount to the most recent regular wage payment and withholds against the combined total using the employee's W-4. Most payroll providers default to the flat method because it's simpler to administer; the aggregate method can produce lower or higher withholding depending on the W-4.
For employees grossed up to a target net amount, see the gross-up entry for the inverse calculation that pre-loads the 22% supplemental rate into the gross figure.
UK cumulative recalculation
UK PAYE runs cumulatively, so any off-cycle payment recalculates the tax due against year-to-date earnings. A high-value off-cycle bonus paid in month six can push the worker into a higher band, with the additional tax landing on the supplementary FPS.
The supplementary FPS rule under PAYE71000 treats the submission as on-time provided it lands on or before the actual payment date. See UK HMRC payroll submissions for the full FPS, EPS, and supplementary submission cycle.
Country-by-country: termination-pay deadlines
Termination is the most common off-cycle trigger because almost every country sets a statutory deadline shorter than the next regular pay date.
| Country | Deadline | Trigger | Penalty for late pay |
|---|---|---|---|
| UK | Next normal payday or earlier | Termination of employment | ERA 1996 s.13 unauthorised-deduction claim |
| US California | Immediately on termination (employer-initiated) | Labor Code §201 | Waiting-time penalty up to 30 days' wages |
| US California (quit) | Within 72 hours of quit notice | Labor Code §202 | Waiting-time penalty under §203 |
| US Texas | 6 days (involuntary) / next regular payday (voluntary) | Texas Payday Law | Texas Workforce Commission claim |
| France | 24-72 hours via solde de tout compte | Code du travail L1234-20 | Damages plus social-charge late-payment interest |
| Germany | Last day of termination month | BGB §614 | Default interest plus damages |
| Netherlands | End of month following termination | BW Article 7:625 | Statutory increase up to 50% of late amount |
California is the strictest. An employer-initiated termination requires all wages (final salary, accrued vacation, commissions earned) paid at the moment of termination, and the §203 waiting-time penalty runs at the worker's daily rate for up to 30 days of delay.
Operational cost: per-run fees and team time
Most EOR providers charge a per-run fee for off-cycle processing in addition to the monthly seat fee. The fee is rarely visible in the headline price.
| Cost line | Typical range | When it applies |
|---|---|---|
| EOR off-cycle processing fee | $50-$300 per run | Per employee, per off-cycle event |
| Payroll provider supplementary cycle | $30-$150 per run | UK supplementary FPS, US 941 deposit |
| FX timing variance | 0.5-2% of payment | Funding and payment currencies differ |
| In-house team time | 2-4 hours per run | Approval, calculation review, reconciliation |
| Late-filing risk premium | £100 HMRC fixed; €25-€100 social-charge interest | Missed cut-off; over 3 days late (UK) |
For full cost-of-employment context including employer-side contributions on supplemental wages, see the employer contributions entry.
How to keep off-cycle runs from breaking reconciliation
Off-cycle runs are the most common source of reconciliation breaks in monthly close. Three patterns cause most of the variance.
Match the off-cycle payment to a regular cycle line
Every off-cycle payment posts to a payroll account, and that account reconciles against the gross-to-net total reported on the supplementary FPS or 941 deposit. If the payroll system runs the off-cycle outside the normal control framework, the entry sits in suspense until matched.
The fix is procedural: every off-cycle approval needs the same coding (cost centre, project, account) as the regular cycle would carry. See the payroll cut-off entry for the timing rule on which cycle absorbs which payment.
Time the funding to the payment, not the cycle
EORs and payroll providers usually fund off-cycle runs from the same client account as regular runs. If the buyer's treasury team funds on a monthly cadence, a mid-month off-cycle run risks overdraft on the provider account, with the payment delayed or rejected.
Map every off-cycle event back to the audit trail
Each off-cycle run needs the same audit trail as a regular cycle: approval, calculation evidence, payment confirmation, statutory filing. Skipping any one of those breaks the audit chain and surfaces at year-end as an unreconciled payroll item.
Whichapp view
Off-cycle runs are the hidden line item in EOR pricing. Get the per-run fee in writing before signing, and budget for two to four off-cycle events per quarter on any headcount above ten people.
For published off-cycle pricing transparency see our Deel review, and the best global payroll providers shortlist for the providers that bundle off-cycle processing into the monthly fee.
See our ranked shortlist of providers, scored for multi-country coverage, reporting depth, and operational fit. Updated for 2026.
View the shortlist →Off-cycle payroll FAQs
What counts as an off-cycle payroll run?
Any payment processed outside the regular scheduled cycle. The most common triggers are termination final pay, sign-on bonuses paid before the first regular cycle, mid-cycle commissions or spot bonuses, and corrections to prior cycles.
Severance, PILON, retroactive backpay, and one-off mobility allowances also typically run off-cycle. The run uses the same gross-to-net engine as the regular cycle but on a separate processing date with separate statutory filings.
How are off-cycle bonuses taxed in the US?
Under IRS Publication 15-A, supplemental wages (off-cycle bonuses, commissions, and severance) are withheld at a flat 22% federal rate up to $1m per employee per year, and 37% above that threshold.
Employers can use the aggregate method instead, combining the supplemental amount with the most recent regular wage and withholding against the W-4. State supplemental rates vary: California 10.23% for bonuses, New York 11.7%.
Does an off-cycle run need a separate UK RTI submission?
Yes. HMRC requires a supplementary FPS for any off-cycle payment, filed on or before the actual payment date under PAYE71000 rules. The FPS is treated as on-time provided it lands on the payment date itself.
A run filed more than three days late attracts a £100 fixed penalty, escalating for repeat offences in the same tax year. See UK HMRC payroll submissions for the wider FPS and EPS reporting cycle.
Do EORs charge extra for off-cycle payroll?
Most do. Typical off-cycle processing fees run $50 to $300 per employee per event on top of the monthly seat fee, depending on provider and country.
Some EORs bundle a fixed number of off-cycle runs into the seat fee; others charge per event. The fee usually doesn't appear in the headline price, so buyers should ask for the off-cycle line item before signing. See our Deel review for one provider's published approach.
What is the California waiting-time penalty for late final pay?
California Labor Code §203 imposes a waiting-time penalty on employers who fail to pay all wages owed at termination. The penalty runs at the worker's daily rate for each calendar day the wages remain unpaid, capped at 30 days.
An employer-initiated termination requires immediate payment under §201; a voluntary quit allows 72 hours under §202. Penalties apply if either deadline is missed.