Fuego: EWA: Payroll End-to-End Process

Overview

Fourth funds earned wage access (EWA) draws made by your employees until the pay date for that pay period. At that point, Fourth expects to receive payment from customers for the total value of the draws made by employees. This article covers the end-to-end process of how to obtain the deductions, validate against your payroll, make repayments to Fourth and manage individual employees.

Please note: This guide supports the full end-to-end process for customers using the EWA service within Fuego but is not required to be followed for Fourth Payroll customers.

Key Steps 

- Payroll batch generation: Creating the file that confirms the total deductions that need to be processed when running payroll for your employees

- Reconciling against your payroll: Reviewing the amounts deducted and confirming the matching value against your batch file 

- Repayment to Fourth: Processing the repayment of funds owed to Fourth that were provided as EWA draws to your employees 

- Employee management: Reviewing the employees that were unable to have their deductions processed and making any required adjustments 

Payroll Batch Generation

Payroll batch generation can be handled in a few different ways:

• The batch is manually created, using the Fuego Admin Tool
• The batch is automatically emailed to you at the end of your pay period (configured during Implementation)
• The batch is set up to be integrated or automated into your payroll solution (configured during Implementation)

Reconciling Against your Payroll 

• Follow the standard import process to import the Fuego batch file into your payroll solution
• Once payroll is completed, run a file (out of your payroll platform) to validate the total of the Fuego deductions processed in payroll
• Confirm that the number of payroll deductions for Fuego matches the total of the Batch file(s) imported
  • If the amounts do not match, please email fuegorepayments@fourth.com with the details of any employee(s) and amount(s) underpaid/overpaid

Repayment to Fourth 

• Initiate an ACH credit for the total amount deducted for Fuego through the standard finance/treasury process, based on the bank account details that were provided during your implementation of Fuego. If you need to re-confirm these details please email fuegorepayments@fourth.com 

Please note, ACH payments should be initiated in a timeframe that allows for funds to reach Fourth by the pay date. This would usually be two business days before the pay date to allow for standard ACH processing.

Employee Management 

• If you have an employee who has not been able to have their Fuego funds deducted for the pay period, there are options to manage this for them. These include the following:
  • Reduce the % of EWA that they can access
  • Create a Lower Earnings Threshold value that they have to reach before being able to draw more funds 
  • Set their status as 'Inactive', preventing them from being able to use the EWA service

Full guidance on how to manage employees using Fuego according to their individual circumstances can be found here: Fuego: Managing Employee Settings.