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How Plane collects funds for contractor payments
How Plane collects funds for contractor payments

What is the source of funds for contractor payroll, and how long is payment processing?

Updated over a week ago

There are two sources of funds you can choose from when paying your contractors:

Bank account

When you schedule a one-time payment, off-cycle payroll, or recurring payroll, we will collect the funds from your bank account the next business day after the payment is scheduled, regardless of the payment date. However, if you schedule a payment before noon PST on a business day, we will collect funds on the same day.

On the Pay contractors page, you'll see both the payment date and the fund collection date. We won't attempt to collect payments before the fund collection date. For example, if it says that we'll collect the payment on Jun 28, we won't start processing until Jun 28.

Our team is currently working on an update to our payroll model that will start pulling funds as close to the pay date as possible instead of when you authorize the payment.

The processing timeline for contractor payments using bank account funds is 4 business days (taking into account US holidays). Check out this article on How are payment dates calculated? to learn more about the turnaround time for contractor payments.

Plane Balance

You can cut the payment processing time in half by first funding your balance in Plane and then using that balance for payments. When you pay through your Plane balance, it take two days instead of four. Please check this article on How to add funds to my Plane balance to learn more.

๐Ÿ’ก Please note: Plane balances only shorten the processing period to two days for one-time payments, not contractor payroll.

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