Configure your payroll with Thatch

Depending on your payroll provider, Thatch can support three types of payroll configurations:

Configuration	Employee roster management	Payroll deduction handling
Manual	Manual	Manual
Employee roster sync	Automated (read only)	Manual
Employee roster sync and automated deductions	Automated (read only)	Automated (write)

For each type of configuration, ensure that your employee roster is up-to-date and your pay schedule is configured.

Add your employee roster

Thatch offers several ways to add your employee roster, so you can choose the method that best fits your team's size and existing systems.

Manage payroll manually

You can run Thatch with any payroll provider. If yours isn't supported, you'll manage your roster and deductions in Thatch directly.

When you create your account you’ll be prompted to select a payroll provider to connect. If you don’t see your payroll system, skip this option and add your pay schedule(s) in the next step.

Once you’ve finished creating your Thatch account, you’ll see the employee information you provided for your health budget appear on the Employees page of your Thatch account. Add any missing information using one of these two options:

• Fewer than 20 employees: click the three dots next to each employee → Edit employee → Save.
• 20 or more employees: email support@thatch.com with a completed employee roster template.

Connect your payroll provider

Connecting your payroll system lets Thatch sync your employee roster and, depending on your provider, automate payroll deductions so you don't have to enter them manually each pay period.

1. During account setup, you'll be prompted to connect your payroll provider. If you skipped this step, go to Settings → Payroll at any time to connect.
2. Search for your payroll provider and follow the guided connection steps.
3. Log in to your payroll system through the connection flow and grant any necessary permissions.
4. Once connected, your employee roster begins syncing. This typically takes 24–48 hours to complete.

Once your roster successfully syncs, you'll see your employees in the Employees section of your Thatch dashboard. From here, verify your pay schedules so Thatch can properly configure deductions.

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Once payroll is connected, new employees can only be added through your payroll system — not manually in Thatch.

Enable automated deductions if available

If your payroll provider supports automated deductions, Thatch sends employee deduction amounts directly to your payroll system.

Once you’ve connected your payroll system and employees have synced, enable automated deductions in the Thatch dashboard:

1. Go to Payroll Deductions in your dashboard.

2. Click Enable Automated Deductions.

   Additional configuration is required for a handful of providers. If so, a modal window will appear and you should follow the payroll-provider setup instructions below.

3. If you have multiple pay schedules, confirm that every employee is assigned to the correct one. Employees without a pay schedule assignment will be automatically assigned to a default monthly pay schedule.

Once enabled, deductions will automatically sync to your payroll provider.

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You can disable automated deductions at any time under Settings → Payroll. If you do, make sure to remove any existing automated deductions in your payroll provider to avoid duplicate withholdings.

Select your payroll provider for additional setup instructions:

UKG Pro

To set up automated deductions in UKG Pro, you'll create two deduction codes: THATC for pre-tax deductions and THATX for post-tax deductions.

Step 1: Open deduction and benefit plans.

1. In UKG Pro, go to System Configuration → Business Rules.
2. Search for "Deduction", then select Deduction/Benefit Plans.
3. Click Add Deduction/Benefit Plans.

Step 2: Set the effective date.

Set the effective date on or before your last payroll date. This lets UKG Pro pick up future deductions.

Step 3: Create the pre-tax code (THATC).

1. Enter THATC as the deduction code.
2. Set Deduction Type to Medical (suggested).
3. Set Tax Category to Section 125 (suggested).
4. Set Employee Calculation Rule to Flat amount.

THATC is your pre-tax deduction code, so the Tax Category should match pre-tax treatment.

Step 4: Create the post-tax code (THATX).

Add a second deduction/benefit plan using the same effective date.

1. Enter THATX as the deduction code.
2. Set Deduction Type to Medical (suggested).
3. Set Tax Category to the option that works for your company.
4. Set Employee Calculation Rule to Flat amount.

THATX is your post-tax deduction code, so the Tax Category should match post-tax treatment.

UKG Ready

To set up automated deductions in UKG Ready, you'll create two deduction codes: THATCH for pre-tax deductions and THATCHX for post-tax deductions. Then you'll grant the required permissions in UKG Ready.

Step 1: Open deduction codes.

In UKG Ready, go to Payroll Setup → Deduction Codes.

Step 2: Create the pre-tax code (THATCH).

1. Enter THATCH as the deduction code.
2. Set Deduction Type to Section125.

Step 3: Create the post-tax code (THATCHX).

1. Enter THATCHX as the deduction code.
2. Set Deduction Type to Standard.

Step 4: Grant access to scheduled deductions.

To grant access, update your HR security profile.

1. In UKG Ready, go to the security profile HR under Employee Management.
2. Set Deductions to View/Edit.
3. Check Mass Edit.

Step 5: Grant access to imports.

In UKG Ready, go to Modules and, under Imports, check the following boxes:

• Deduction Codes
• Earning Codes
• Employees
• Import Batches
• Import Templates

Paylocity

To set up automated deductions in Paylocity, you'll create two deduction codes: THATC for pre-tax deductions and THATX for post-tax deductions.

Step 1: Open deductions.

In Paylocity, go to Configuration → Company Setup → Payroll → Deductions.

Step 2: Create the pre-tax code (THATC).

1. Enter THATC as the deduction code.
2. Set Deduction Type to 125 - Cafeteria Plan.
3. Set Calculation Code to Flat Amount.

Step 3: Create the post-tax code (THATX).

1. Enter THATX as the deduction code.
2. Set Deduction Type to Standard.
3. Set Calculation Code to Flat Amount.

Paycor

To set up automated deductions in Paycor, you'll create two company deductions: THATCH for pre-tax deductions and THATCHX for post-tax deductions. Log in to Paycor as an Admin user before you begin.

Step 1: Open company deductions.

1. In Paycor, go to Deduction/Benefit Plans.
2. Search for "Deductions", then select Company Deductions.

Step 2: Create the pre-tax code (THATCH).

1. Click Add Company Deduction.
2. Search for "Deduct - Deduction - Client Defined".
3. Enter THATCH as the deduction code.
4. Set Description to Pre-Tax.

Step 3: Create the post-tax code (THATCHX).

1. Click Add Company Deduction.
2. Search for "Deduct - Deduction - Client Defined".
3. Enter THATCHX as the deduction code.
4. Set Description to Post-Tax.

Ceridian Dayforce

To set up automated deductions in Ceridian Dayforce, you'll grant the required permissions to the user role you'll use for the Thatch integration. All of these settings are in System Admin → Roles.

Step 1: Open roles.

In Ceridian Dayforce, go to System Admin → Roles, then select the role you'll use for the Thatch integration.

Step 2: Enable field-level access.

1. Open the Web Services Field-Level Access tab.
2. Under RESTful Services → Configuration, enable DeductionDefinition and all child nodes.
3. Under RESTful Services → Human Resources → Employee:
   1. Right-click Employment Statuses and Select All.
   2. Right-click Employment Status Group and Select All.
   3. Enable Contacts and Addresses and all child nodes.
4. Under RESTful Services → Human Resources, enable EmployeeCompensation and all child nodes.
5. Under RESTful Services → Human Resources, enable EmployeePayrollElection and all child nodes.

Step 3: Enable authorizations.

1. Open the Authorizations tab.
2. For Employee Payroll Elections, enable Can Read.
3. For Employee Payroll Elections, enable Can Create.

Step 4: Assign feature access.

1. Open the Features tab.
2. Under HCM Anywhere → Web Services, assign your user role access to the PATCH/POST Payroll Elections subfeature.

Partner integrations

If you signed up for Thatch through a partner integration, your dashboard may look different from the standard setup.

QuickBooks and Allstate

• Your employee roster is created and maintained from your QuickBooks system.
• You will not have a Payroll Deductions tab or a Payroll tab under Settings; deductions are written directly to QuickBooks automatically.

ADP Run

• Your employee roster is created and maintained from your ADP system.
• You will have a Payroll Deductions tab on your Thatch dashboard.
• You can enable or disable Automated Deductions via Settings → Payroll.

Configure pay schedules

Pay schedules tell Thatch when and how often you pay your employees. This is how Thatch ensures deduction reports are generated at the right time and in the right amounts — so everything lines up with your actual payroll runs.

Without a pay schedule configured, Thatch defaults to generating deductions on a monthly cadence, which may not match how you actually pay employees. Setting up your schedule correctly ensures:

• Deduction reports arrive five business days before each pay date
• Employee deduction amounts are calculated for the right number of pay periods
• Automated deductions (if applicable) write to your payroll system on time

Supported pay frequencies

Thatch supports the following pay schedules:

Frequency	Description	Pay periods/year
Weekly	Paid every week	52
Bi-weekly	Paid every two weeks	26–27
Semi-monthly	Paid twice per month on specific dates	24
Monthly	Paid once per month	12

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Thatch can cap the number of pay dates per month upon request. Reach out to support@thatch.com with your company name and the specific pay period you want updated.

Set up your pay schedule

You will be prompted to set up pay schedules when you create your account, or asked to verify the schedule after your initial account setup. You can access your pay schedules at any time via Settings → Payroll → Manage or through the Payroll Deductions page.

1. Select your pay frequency.
2. Enter your specific pay dates (or anchor day for bi-weekly/weekly schedules).
3. Indicate how you'd like Thatch to handle pay dates that fall on bank holidays.
4. Review and confirm your schedule — it won't go live until verified.

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For auto-synced accounts: until your pay schedule is verified, deductions default to a monthly cadence. Complete verification before your first payroll run.

Manage multiple pay schedules

If you pay different groups of employees on different schedules — for example, hourly employees weekly and salaried employees semi-monthly — you can set up multiple pay schedules in Thatch.

Rules for multiple schedules:

• Each employee must be assigned to exactly one pay schedule
• Employees not assigned to a schedule default to monthly deductions
• If you see a banner prompting you to assign employees, do this before your next payroll run

To assign or reassign employees, go to Settings → Payroll → Manage, select the schedule, and use the Add Employees button.

Archive old pay schedules

If a pay schedule is no longer active, archive it rather than leaving it open. Inactive schedules can cause employees to be unassigned or generate incorrect deductions.

To archive a pay schedule, go to Settings → Payroll → Manage and select Deactivate pay schedule.

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The default monthly pay schedule cannot be archived — it serves as a system fallback. If you see monthly deductions generating unexpectedly, check that your pay schedules are verified and employees are assigned correctly.

Read Process payroll deductions to learn more about the deduction reports that are generated in accordance with your pay schedule.