Modulr integration

As UK Payroll's Payment Service Provider (PSP), Modulr provides payment services, including processing payment transactions. You have direct access to your Modulr account through a self-service portal.

How to set up your Modulr integration

1. Ensure you have set up two-factor payroll authentication.
2. In UK Payroll, from the left menu, select Settings.
3. Navigate to Integrations > Payments. 
4. In the Modulr tile, click Connect. The tile will show a Signup initiated status.
5. Enter your details in the sign-up page, and click Continue. 
6. You will receive an application email with a unique link to access and complete your registration. Click the link in the email to continue your application.
7. Enter your email address and click Continue.
8. Select Manage > Start application. 

9. Fill out and submit your Modulr application.

   Note: If you have any questions about the Modulr application, please contact support@modulrfinance.com.

10. Once Modulr has processed your information, you will receive a new user email inviting you to complete your setup. Click Complete Setup to finish your setup in Modulr. 
11. You now have access to Modulr to manage your payments. 
12. In UK Payroll, the Modulr tile will show a Connected status. This means that UK Payroll and Modulr are successfully linked and can be used for payments. 

How to fund and manage your Modulr account

1. In UK Payroll, from the left sidebar, select Payments.
2. Click on Modulr settings in the top right corner.
3. Log into your Modulr account through Modulr's portal.

4. Fund your account, or access account statements, make manual payments, manage admins, and more. To learn more, see Modulr's User Guides.

   Note: You can only transfer funds to Modulr from a UK bank account.

Insufficient funds for employee payments

It is your responsibility to check payment statuses in Modulr and to ensure no payments have failed due to insufficient funds in your account. If there are insufficient funds in your account, fund your account, following the steps above.

If the balance on the account was £0

Our support team will contact you and let you know that the payment failed. Once you have transferred the monies, the payment request will reset automatically for you.

Once reset, it should take 5-10 minutes for the payments to be made, at which point the payroll status will update to Submitted. The Employee Payslips & HMRC submission will also be sent automatically.

Note: Payment requests generally activate between 12am and 1 am. If the funds arrive on account after the payment request, it may cause an error and need to be reset.

If the account had some funds available

If there aren't enough funds on the account to cover the total net payments, payroll will be partially paid automatically. Payments to staff will be sent until the balance has reached £0. The remaining payments to employees will fail.

You can check the status of the payroll in Payments. If a payroll cycle is only partially successful, it'll be marked with "Error" under Status.

If this happens, you will need to make manual payments to the remaining employees and any necessary payments to HMRC. Support will submit the payslips and the HMRC submission for you manually.

Note: Partially completed payrolls can't be reset.

Incorrect bank details

1. If an employee's bank details are incorrect, support will contact you with a request to amend the employee's information.
2. Once the details are updated, you are responsible for arranging a payment through Modulr.

Note: Payments can only be made to UK bank accounts.

Insufficient funds for HMRC Payments

HMRC payments are sent on the 18th of the month following payroll. This date includes weekends.

Note: The deadline for HMRC payments is the 22nd of each month. For example, July PAYE liabilities are paid to HMRC on 18th August, and are due 22nd August.

This payment is sent automatically when:

1. Payroll is confirmed with a verification code.
2. Your Modulr account is funded by 11:59 pm the night before payment.

Insufficient funds on account

You are responsible for ensuring sufficient funds on your account.

If you are able to fund the account by the payment date: The payment request will reset automatically and no further action will be required.

If you are unable to fund the account until a later date: Contact support to reset the payment request manually once you have sufficiently funded the account in Modulr.

Note: Late payments may result in HMRC issuing a penalty.

High-value payments

Modulr's Customer Thresholds are in place to satisfy financial regulatory requirements and safeguards, including anti-money laundering laws.

If you are expecting to make any payments that go beyond Modulr's Customer Thresholds, please contact support to find the best solution to suit your payroll needs.

Note: Failing to give advance notice could result in a hold placed on your payment.

FAQs

Will my payroll processes change once I switch over to managing my own Modulr account?
No. Your existing integration with Modulr will stay intact, automatic payments will continue to be issued, and the process for loading funds into your account will stay the same. In addition, you'll now have access to your own Modulr account and additional functionalities to enhance your control and flexibility.

How do I handle failed payments?
You can see failed and processed payments in the Modulr portal. For more information, see Modulr's Payment Statuses.

Who should I contact if I'm having problems with Modulr?
Reach out to support@modulrfinance.com for support with Modulr.

If I submit the payroll by 11:59 pm the night before payday, what time will it be available in people's accounts?
If payroll has been confirmed before payday, employees will usually get paid just after midnight on payday, with a possible delay of a few hours (the latest being around 4 am).

Can I transfer the funds for Net Payments and HMRC separately?
Yes. As long as the funds for each of the payments are on the account by 11:59pm the night before payment, they will go through automatically.

What if I can't fund the account on time?
Let UK Payroll support know as soon as the funds are available and to reset the payment request for you.

What if I want UK Payroll to pay Net Payments, but not HMRC?
See Pause automated HMRC payments. It can be re-enabled at any point.

What if I accidentally confirm payroll without payments?
If you accidentally select Confirm payroll without payments, you will be prompted to confirm manual payments.

If you select Yes, I will pay my employees outside of UK Payroll by accident or change your mind, you can reset automatic payments.

1. Navigate to Payrolls > relevant payroll cycle.
2. Click Edit payroll in the top right corner.
3. Once you have made any necessary edits, click Confirm payroll in the top right corner.
4. Select Verify and confirm payments.

If an employee's bank details are updated after the payroll has been confirmed, will net payments go to the new bank account?
Payment details are locked in for payment transfer one day before your scheduled payday. If the employee's new bank details are updated in UK Payroll before this day, they will get their salary paid into their new bank account.

Can Open Banking be used in Bob using the Modulr integration?
No. Open Banking can be used directly in Modulr, but not in Bob using the integration.