Cash Requirement Report #

Overview #

The Cash Requirement Report displays the total amount Friday needs to collect from the company to fund a specific payroll.

The report breaks the required funding amount into categories, including:

• Employee or contractor direct deposits
• Employer payroll taxes remitted by Friday
• Employee payroll taxes remitted by Friday
• Managed post-tax deductions
• Total cash requirement

Note: This report can only be run for one payday or pay period at a time. It cannot be run using a custom date range.

What Is the Cash Requirement? #

The Cash Requirement is the total amount Friday needs to collect from the company for the selected payroll.

General calculation:

Direct Deposit + Remittable Company Taxes + Remittable Employee Taxes + Managed Post-Tax Deductions = Cash Requirement

The report focuses on amounts that Friday is responsible for collecting and sending as part of the payroll. It may not include amounts paid or handled outside of Friday.

Common Uses #

Use the Cash Requirement Report to:

• Review the total funding required for a payroll
• Understand how the payroll debit is calculated
• Separate direct deposits from payroll taxes
• Review employer and employee taxes collected by Friday
• Review managed post-tax deductions
• Reconcile a payroll with the company’s bank debit
• Provide payroll funding details to an accountant or bookkeeper
• Investigate why the payroll debit is higher than employee net pay

How the Report Is Organized #

• The report shows the funding requirement for the selected payday or pay period.
• Each employee or contractor included in the payroll may appear on an individual line.
• The report may include a Cash Requirement totals row that combines all amounts from the selected payroll.
• The report does not combine payroll activity from multiple payroll dates into one report.

Information Included in the Report #

| Column | Description |
|—————————–|——————————————————————–|
| Employee | The employee’s unique identifier, when applicable |
| Contractor | The contractor’s unique identifier, when applicable |
| First Name | The employee’s or contractor’s first name |
| Last Name | The employee’s or contractor’s last name |
| Contractor Business Name | The contractor’s business name, when applicable |
| Direct Deposit | The amount Friday will send directly to the employee or contractor |
| Remittable Company Taxes | Employer payroll taxes collected and remitted by Friday |
| Remittable Employee Taxes | Employee payroll taxes withheld and remitted by Friday |
| Managed Post-Tax Deductions | Post-tax deductions collected and managed through Friday |
| Cash Requirement | The total funding required for that record or payroll |

Employee and Contractor Information #

The report may contain both employee and contractor records.

Employee #

• The Employee column shows the unique identifier connected to an employee.

Contractor #

• The Contractor column shows the unique identifier connected to a contractor.

First Name and Last Name #

• These columns identify the employee or contractor connected to the payment.

Contractor Business Name #

• The Contractor Business Name column shows the contractor’s business name, when applicable.
• This field may be blank if the contractor was registered as an individual or no business name was entered.

Direct Deposit #

• The Direct Deposit column shows the amount Friday will send electronically to the employee’s or contractor’s bank account.
• This column generally does not include payments marked as manual or check payments, as Friday is not sending those funds through direct deposit.

Example:

• If an employee has net pay of $1,500 and a payment method of direct deposit, the $1,500 will be included in the Direct Deposit column.
• If the same employee is paid by manual check, that amount may not be included because the employer is responsible for issuing the check directly.

Remittable Company Taxes #

• The Remittable Company Taxes column shows employer-paid payroll taxes that Friday collects from the company and remits to the appropriate tax agencies.

Examples:

• Employer Social Security tax
• Employer Medicare tax
• Federal unemployment tax
• State unemployment tax
• Employer-paid state payroll taxes
• Other employer payroll taxes handled by Friday

These taxes are paid by the company in addition to employee wages.

Remittable Employee Taxes #

• The Remittable Employee Taxes column shows taxes withheld from employee wages that Friday collects and remits to the appropriate tax agencies.

Examples:

• Federal income tax
• Employee Social Security tax
• Employee Medicare tax
• Additional Medicare tax
• State income tax
• Local income tax
• Other employee payroll taxes handled by Friday

These amounts are already deducted from the employee’s gross pay, but Friday still needs to collect the funds from the company to pay the appropriate agencies.

Managed Post-Tax Deductions #

• The Managed Post-Tax Deductions column shows post-tax deductions that Friday collects and manages as part of the payroll.
• Post-tax deductions are taken from an employee’s pay after payroll taxes are calculated.

Examples:

• Garnishments
• Child-support deductions
• Loan repayments
• Benefit deductions
• Other post-tax deductions managed through Friday

Not every post-tax deduction will necessarily appear in this column. A deduction may only be included if Friday is responsible for collecting or managing the payment.

Cash Requirement #

• The Cash Requirement column shows the total amount Friday needs to collect for the employee, contractor, or entire payroll.
• The report may calculate the amount using:

– Direct Deposit
– Remittable Company Taxes
– Remittable Employee Taxes
– Managed Post-Tax Deductions

The totals row shows the full cash requirement for the selected payroll.

Why Is the Cash Requirement Higher Than Net Pay? #

The cash requirement is usually higher than the total employee direct deposits because it includes more than employee net pay.

In addition to direct deposits, the company may need to fund:

• Employee taxes withheld
• Employer payroll taxes
• Managed post-tax deductions
• Contractor direct deposits
• Other amounts managed by Friday

Example:

| Payroll Item | Amount |
|—————————–|———-:|
| Employee Direct Deposits | $10,000 |
| Employee Taxes | $2,500 |
| Employer Taxes | $1,000 |
| Managed Post-Tax Deductions | $500 |
| Total Cash Requirement | $14,000 |

Although employees only receive $10,000 through direct deposit, Friday needs $14,000 to fund the complete payroll obligation.

Why Is the Cash Requirement Lower Than Total Payroll Cost? #

The Cash Requirement Report only includes amounts Friday needs to collect and manage. It may not include:

• Manual checks issued directly by the company
• Cash payments
• Zelle, Venmo, wire, or other external payments
• Non-remittable taxes or insurance premiums
• Deductions paid directly by the employer
• Benefits paid outside of Friday
• Other employer expenses not collected through payroll

Because of this, the cash requirement may be lower than the company’s complete payroll cost.

Manual and Check Payments #

• Payments marked as Manual or Check may be recorded in payroll without being included in the Direct Deposit amount.
• The company is responsible for paying those employees or contractors directly.

Example:

• If an employee receives gross wages of $2,000 and a manual check for $1,500 net pay, Friday may collect the applicable payroll taxes, but the employer is responsible for issuing the $1,500 check.
• The Cash Requirement Report may include the taxes but exclude the manual net payment.

Non-Remittable Taxes and Deductions #

Certain payroll items may be calculated or withheld through Friday but are not collected or remitted by Friday.

Examples:

• Certain state disability-insurance premiums
• Certain paid-family-leave insurance premiums
• Benefits paid directly to an insurance provider
• Deductions managed outside of Friday

These amounts may appear in payroll reports but may not be included in the Cash Requirement Report. The employer remains responsible for paying non-remittable amounts to the appropriate provider or agency.

Cash Requirement vs. Company Bank Debit #

The total Cash Requirement is intended to show the amount Friday needs to collect for the selected payroll. However, the exact bank debit may differ in certain situations, including:

• Multiple payroll debits were combined
• Funding was collected through separate transactions
• A credit or adjustment was applied
• A payroll was reversed or corrected
• The company funded payroll by wire
• A prior balance was included
• A transaction fee or NSF fee was collected separately
• The payroll funding method changed

Review the payroll transaction history when the Cash Requirement does not match the amount shown in the company’s bank account.

Cash Requirement vs. Total Payroll Cost #

These two amounts serve different purposes.

| Amount | What It Includes |
|————————|——————————————————————————————————–|
| Cash Requirement | Amount Friday needs to collect and manage for the payroll |
| Total Payroll Cost | Complete employer cost, including gross wages, employer taxes, benefits, and other company-paid amounts|

The total payroll cost may include amounts that Friday does not debit from the company’s bank account.

Cash Requirement vs. Payroll Journal Report #

| Report | Primary Purpose |
|————————————-|———————————————————————–|
| Cash Requirement Report | Shows how much Friday needs to collect to fund one payroll |
| Company Payroll Journal Report | Shows wages, taxes, deductions, and net pay for each individual check |
| Company Payroll Summary Report | Summarizes payroll activity by employee |
| Tax Liability Report | Shows payroll taxes calculated for a payroll |
| Tax Deposits Report | Shows the funding and deposit status of tax payments |

• Use the Cash Requirement Report to understand the payroll funding amount.
• Use the Payroll Journal Report when you need detailed paycheck-level calculations.

How to Run the Cash Requirement Report #

1. Log in to Friday.
2. Go to Reports.
3. Select Cash Requirement Report.
4. Select one payday or pay period.
5. Click Run Report.
6. Review or download the report as a CSV or PDF, if available.

Note: The Cash Requirement Report can only be run for one payday or pay period at a time. A custom date range cannot be selected.

When to Use This Report #

Use the Cash Requirement Report when you need to:

• Confirm the funding required for a specific payroll
• Understand the company’s payroll debit
• Review direct-deposit funding
• Review taxes collected by Friday
• Review managed post-tax deductions
• Reconcile a payroll transaction
• Explain why the debit is higher than employee net pay
• Confirm which payroll items are included in Friday’s debit
• Provide payroll funding details to an accountant or bookkeeper

Frequently Asked Questions #

Can I run the report for a custom date range? #

No. The Cash Requirement Report can only be run for one payday or pay period at a time. To review multiple payrolls, run a separate report for each payday or pay period.

What does Cash Requirement mean? #

Cash Requirement is the total amount Friday needs to collect from the company to fund direct deposits, remittable taxes, and managed post-tax deductions for the selected payroll.

Does the Cash Requirement include manual checks? #

Generally, the employee’s or contractor’s manual net payment is not included because the company is responsible for sending those funds directly. The payroll taxes connected to the manual payment may still be included.

Does the report include contractor payments? #

Contractor direct deposits may be included when contractors are part of the selected payroll.

Why are employee taxes included if they were already withheld? #

The taxes were withheld when calculating the employee’s net pay, but the company still needs to provide those funds so Friday can remit them to the tax agencies.

Why are employer taxes included? #

Employer taxes are additional company expenses that must be funded in addition to employee wages.

Does the report include all deductions? #

No. The report generally includes managed post-tax deductions that Friday is responsible for collecting or handling. Deductions managed outside of Friday may not be included.

Why does the report not match the total payroll cost? #

The Cash Requirement only shows the amounts Friday needs to collect. Total payroll cost may also include manual payments, non-remittable amounts, benefits, and other employer expenses.

Why does the report not match my bank debit? #

The difference may be caused by separate funding transactions, credits, adjustments, reversals, wire funding, or other transaction activity. Review the payroll transaction history or contact Friday Support.

Does the Cash Requirement Report confirm that taxes were paid? #

No. The report shows the amounts Friday needs to collect for the payroll. Use the Tax Deposits Report to review tax funding and deposit status.

Does the report show each employee’s gross pay? #

No. The report focuses on the amounts Friday needs to collect. Use the Company Payroll Journal Report or Company Payroll Summary Report to review gross wages and detailed payroll calculations.

Additional Information #

• The report can only be run for one payday or pay period at a time.
• Custom date ranges are not available.
• Direct deposits are included in the cash requirement.
• Remittable employee and employer taxes are included.
• Managed post-tax deductions may be included.
• Manual employee or contractor payments may be excluded.
• Non-remittable taxes and deductions may not be included.
• The Cash Requirement may differ from total payroll cost.
• The totals row shows the complete amount required for the selected payroll.