Payroll: Paying via PayPal

The PayPal integration is set up for PayPal Mass Pay. This is the lowest cost way for a business to pay people on PayPal. The cost 2% of the transfer amount PLUS PayPal will effectively charge for currency conversion at a rate of approximately 2.5% although this varies depending on the currency. The maximum fee is $20 for international payments and only $1 for US and Canadian domestic payments.

If you do not have access to PayPal Mass Pay but you still want to use PayPal then you can pay manually through your PayPal account. In this case select the payment method as Manual. The costs will be significantly higher in this case.

The steps to setting this up are:

Step 1: Apply for Mass Pay in your PayPal account.

You can do this by calling PayPal. The criteria for acceptance are:

It’s not clear which countries they will accept but they will not accept all countries into the program.

Step 2: Select for the PayPal payment method to be on


Step 3: Select the currency for your PayPal account

This needs to be the same currency as your PayPal bank account. Unfortunately with PayPal mass pay you can only calculate salaries and pay people in the same currency as your PayPal bank account.

PayPal currency settings

Step 4: Select the individual people that you wish to use PayPal

Change their payment method to “PayPal” and check if their PayPal email address is valid (but default it will be the same as their email address but you can change it.

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