This article explains how clients can easily update a US Payroll contract for an existing direct employee.
✅ Step 1 – Select the employee
Select the People Icon to access the All People tab
Next, select the US Payroll or Global Payroll employee whose contract will be updated.
For Global Payroll employees please ensure that the Worker type is set to Direct employee - Payroll.
✅ Step 2 – Access the contract
In the Contracts / Agreements section, click View Agreement to open the employee contract.
✅ Step 3 – Select the section to be updated
Click Edit in the section(s) where changes will be made.
Note: The Additional details, Compliance documents, and Payment Details can also be updated; however, since the details here are usually provided by employees, we recommend that clients do not make changes here unless they are doing so on behalf of the employee.
✅ Step 4 – Review changes and complete the update
Once clients are satisfied with the changes, click Next then Update for the changes to be made.
After confirming a change, they will see a message at the top of the section advising them of when the change will take effect.
Changes made to Compensation, Employment status, and Job information are logged on the platform and can be viewed by clicking (1) View History.
Clients may also click (2) View update details to see the changes and cancel an update before it takes effect.
Frequently Asked Questions
[ACCORDION] When would clients need to update an employee contract?
Clients can update a employee contract when:
- An employee’s compensation changes
- An employee’s employment status changes from part-time to full-time and vice versa
- An employee’s job title changes
- An employee’s start date if the date hasn’t passed
[ACCORDION] Can a future date be selected for a contract amendment to take effect for an employee?
Yes, Global Payroll employees can select a future date for an amendment to become effective, provided the actual start date of the contract is not in the past. This ensures the effective date calendar only shows dates from the current date onwards.
Additionally, for an amendment to take effect in the future, the cut-off for the direct employee’s first payroll must not have passed.
[ACCORDION] Can the compensation frequency in a Global Payroll contract be changed from annual salary to hourly pay?
Yes, the compensation frequency in a direct employee agreement can be amended.
Access the Compensation section on the contract overview page, select the employee, click View Agreements, scroll down to Compensation, click (1) Edit, and (2) change the payment frequency to annual, monthly, or hourly.
The gross salary can be changed, but the payment currency cannot be altered on the platform.
[ACCORDION] Can Global Payroll contracts be reclassified from exempt to non-exempt?
Yes, clients with Direct Employees in the United States can reclassify their salaried employees to comply with Department of Labor requirements.
Reclassify US employees by accessing the Compensation section on the contract overview page, selecting the employee, clicking View Agreements, scrolling down to Compensation, and clicking (1) Edit, and (2) FLSA Status.
For more information on exempt vs non-exempt employee classification, see: Exempt vs Non-Exempt Employee.
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[ACCORDION] What happens if an employee address changes?
Once your employee requests an address change our team will send a notification for your approval.
We'll let you know about a new task of change in working location and you can decide if you want to approve the address change immediately or approve effective next pay period.
If the new address is in a jurisdiction where the company is not registered, you will be prompted to complete the missing state registration in your task list.