> ## Documentation Index
> Fetch the complete documentation index at: https://docs.toku.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Running Payroll

> Process stablecoin payroll for your employees

## Overview

Process payroll to pay employees their stablecoin compensation. Toku handles the conversion, tax withholding, and distribution automatically.

***

## Payroll Process

<Steps>
  <Step title="Review payroll data">
    Check that employee data is up to date and stablecoin elections are configured.
  </Step>

  <Step title="Create payroll run">
    Navigate to **Payroll** > **Run Payroll** and create a new payroll.
  </Step>

  <Step title="Set pay period">
    Select the pay period and pay date.
  </Step>

  <Step title="Review calculations">
    Verify gross pay, withholdings, and net amounts.
  </Step>

  <Step title="Approve payroll">
    Review the summary and approve for processing.
  </Step>

  <Step title="Process payments">
    Payments are sent to employee wallets.
  </Step>
</Steps>

***

## Creating a Payroll Run

<Tabs>
  <Tab title="Dashboard">
    <Steps>
      <Step title="Navigate to Payroll">
        Click **Payroll** in the sidebar.
      </Step>

      <Step title="Click Run Payroll">
        Select **Run Payroll** to start a new run.
      </Step>

      <Step title="Select pay period">
        Choose:

        * Pay period start and end dates
        * Pay date
        * Payroll type (regular, bonus, off-cycle)
      </Step>

      <Step title="Review employees">
        See all employees included in this payroll.
      </Step>
    </Steps>
  </Tab>

  <Tab title="API">
    Use the [Create On-Cycle Payroll](/api/payroll/create-on-cycle) or [Create Off-Cycle Payroll](/api/payroll/create-off-cycle) endpoint:

    ```bash theme={null}
    curl -X POST "https://api.toku.com/api/payroll/createOnCyclePayroll" \
      -H "Authorization: Bearer YOUR_API_KEY" \
      -H "Content-Type: application/json" \
      -d '{
        "orgID": 100,
        "startDate": "2025-02-01",
        "endDate": "2025-02-28",
        "payDate": "2025-02-28"
      }'
    ```

    After creation, [finalize the payroll](/api/payroll/finalize) to approve it for processing.
  </Tab>
</Tabs>

***

## Payroll Calculations

### Gross to Net

For each employee, Toku calculates:

| Component             | Description                       |
| --------------------- | --------------------------------- |
| **Gross Pay**         | Total compensation for the period |
| **Tax Withholding**   | Federal, state, and local taxes   |
| **Deductions**        | Benefits, 401k, etc.              |
| **Net Pay**           | Amount to be distributed          |
| **Stablecoin Amount** | Net pay × stablecoin percentage   |
| **Fiat Amount**       | Net pay × fiat percentage         |

### Stablecoin Conversion

1. Net stablecoin amount determined
2. Exchange rate locked at processing time
3. Exact stablecoin amount calculated
4. Amount sent to employee wallet

***

## Review and Approval

### Payroll Summary

Before approving, review:

* Total gross payroll
* Total withholdings
* Total net payroll
* Stablecoin vs. fiat breakdown
* Per-employee details

### Approval Workflow

Depending on your settings:

* Single approver
* Multiple approvers
* Automatic approval below threshold

***

## Payment Processing

### Stablecoin Payments

* Sent immediately upon approval
* Arrive in employee wallets same day
* Transaction hashes provided

### Traditional Payments

* Processed through your bank or payroll provider
* Standard ACH timing applies

***

## Payroll Types

### Regular Payroll

Standard scheduled payroll (weekly, bi-weekly, monthly).

### Bonus Payroll

One-time bonus payments outside regular schedule.

### Off-Cycle Payroll

Corrections, termination pay, or special payments.

***

## Payroll Status

```mermaid theme={null}
stateDiagram-v2
    [*] --> Draft
    Draft --> PendingApproval : Submit
    PendingApproval --> Approved : Approve
    PendingApproval --> Draft : Reject
    Approved --> Processing : Begin processing
    Processing --> Completed : All payments succeed
    Processing --> PartiallyCompleted : Some payments fail
    Draft --> Cancelled : Cancel
    PendingApproval --> Cancelled : Cancel
```

| Status                  | Description                        |
| ----------------------- | ---------------------------------- |
| **Draft**               | Payroll created, not yet submitted |
| **Pending Approval**    | Awaiting approver action           |
| **Approved**            | Approved, payments processing      |
| **Processing**          | Payments being sent                |
| **Completed**           | All payments successful            |
| **Partially Completed** | Some payments failed               |

***

## After Payroll

Once payroll completes:

* Employees receive payment notifications
* Payslips are generated
* Transaction records are stored
* Reports are updated

***

<Tip>
  **Payroll Client Guide** — Step 4 of 5. [Previous: Payroll Integration Setup](/payroll/client/payroll-integration-setup) | [Next: Payroll Reporting](/payroll/client/reporting)
</Tip>

## Next Steps

<CardGroup cols={2}>
  <Card title="Reporting" icon="chart-bar" href="/payroll/client/reporting">
    View payroll reports
  </Card>

  <Card title="Payroll FAQ" icon="circle-question" href="/payroll/faq">
    Common questions
  </Card>
</CardGroup>