Understanding Knit’s Payroll Processing Threshold
To keep your payroll secure and seamless, Knit uses a payroll processing threshold as an additional safeguard. Keep reading to know what that means, how it works, and what to do if you expect to go over your limit.
What is a Payroll Processing Threshold?
Your payroll threshold represents the maximum total amount of payroll that can be processed at one time under your standard funding schedule.
This threshold is calculated based on your most recent payroll activity, including a buffer to account for normal fluctuations.
How Does the Threshold Work?
The threshold is cumulative and applies to all your pending payrolls that have not yet been funded and disbursed—it's not based on individual payrolls or daily limits.
Once those payrolls are fully funded and paid out to employees, your threshold automatically resets to its full amount.
For example:
- If your threshold is $100,000 and you submit a payroll for $90,000, it will process under your standard funding timeline.
-
If you then submit another payroll for $20,000 before the first one is disbursed, the total ($110,000) exceeds your threshold, and the funding timeline for the $20,000 payroll will shift to 5 business days.
What Happens If I Exceed My Threshold?
If the total of your pending payrolls exceeds your threshold, you'll need to run payroll earlier than usual, as the funding schedule will automatically extend to 5 business days for any amount above the limit.
To prevent delays, we recommend contacting us in advance if you expect your payroll to be significantly larger than usual—for instance, due to bonuses, seasonal increases, or new hires.
Where Can I See My Threshold?
You can view your current payroll threshold in your Knit account by:
- In the top-right corner click on your name
- In drop down menu click on "Billing"
- You will be taken to the "Account Details" Page where you will see your "Payroll Threshold"
How Can I Increase My Threshold?
If your upcoming payroll is higher than usual:
-
Click Request to Increase Payroll Threshold. This will prompt you to send an email to Knit for the request. Make sure to attach the latest three months of bank statements.
- We'll review your payroll activity and discuss potential threshold adjustments or flexible funding options.
- We recommend reaching out and pre-funding at least 5 business days before your target payroll pay date.
What Other Funding Options Are Available?
To support different business needs, aside from pre-authorized debits, Knit offers the following payroll funding methods:
1. Wire Transfer
Manually transfer funds at least 2 business days before the pay date.
- Funds must be in CAD.
-
Contact us for our banking details.
2. Interac E-Transfer (up to $25,000)
For smaller payrolls, send your e-transfer to finance@knitpeople.com.
-
Must be received by 3:30 PM EST for next-day processing.
3. Bill Payment
Use your bank’s online bill payment feature.
- Select "Knit Payment Service" as the payee.
- Submit payment at least 2 business days before the pay date, by 3:30 PM EST.