Before your client can run live payroll
When a client is added to Paiday, they start in preview mode. There are three steps that must be completed to exit preview mode and run actual payroll. Until these are done, payrolls cannot be processed — regardless of payment method.
The three required steps
1. Complete KYB (Know Your Business) Paiday is required to verify your client's business before processing payroll. This is a regulatory requirement. KYB verification can take a few business days, so complete this step as early as possible.
2. Sign the PAD Agreement The Pre-Authorized Debit agreement authorizes Paiday to pull funds for payroll and source deduction remittances.
3. Add a bank account A verified bank account is required to fund payroll and remit deductions to the CRA.
Once all three steps are complete, preview mode is automatically lifted.
⚠️ What happens if you run payroll in preview mode
Payrolls run in preview mode are not processed. This means:
Employees will not receive direct deposits
Source deductions will not be remitted to the CRA
T4s will not be generated at year-end for those pay periods
This applies even if your client is paying by paper cheque. The payment method does not affect preview mode — steps 1–3 are required regardless.
How to check if your client is still in preview mode
A Preview Mode banner (in yellow) will appear along the top of a client's payroll view until all three steps are verified and complete.
Plan ahead
KYB verification can take several business days. If your client has an upcoming payroll date, start the setup process as soon as they're added to Paiday — don't wait until the pay period opens.