Phase 8: Finance & Payment Process
Applies to: All staff involved in patient/contractor payment setup, invoice processing, payment approval, or Workamajig recording for the Patient Engagement Program
Sequence note: Phases 0-4 sequential; phase 10 anytime; not all phases apply
What you'll learn
- Execute the patient/contractor payment setup workflow - from CS Lead-initiated Gusto self-onboarding through invoice receipt, Monthly Payment Summary approval, and Finance-executed payment - satisfying all pre-payment requirements before any payment is processed
- Apply the three-system segregation principle (Workamajig knows WHAT, Gusto knows WHO, reconciliation log connects both with Finance-only access) and prohibit all non-Gusto payment methods without exception
- Identify the key controls governing payment exceptions, bank-account change verification, tax form generation, and record retention periods
Lesson
Step 1 - CS Lead Initiates Payment Setup
The CS Lead creates a spreadsheet containing the contractor's de-identified name and valid email address, shares it via SharePoint, and sends it to Finance so that the Gusto contractor profile setup can be initiated. The CS Lead also proactively shares the Gusto Information Guide with the contractor at this stage.
Source: slide 26 - Patient Payment and Financial Processing_Final_8-2026
Workamajig Project Setup - No Patient Names
Simultaneously with payment setup, the CS Lead or PM creates a project in Workamajig that includes the job code, client reference, contract terms, and hours/rate. No patient names or any other identifying information may ever be entered into Workamajig.
Source: slide 26 - Patient Payment and Financial Processing_Final_8-2026
Step 2 - Finance Creates Contractor Profile via Gusto Self-Onboarding
Finance logs into Gusto, navigates to People > Add Person > Individual Contractor, enters only the contractor's email address, and sends the invitation. Gusto sends the contractor a secure self-onboarding link through which the contractor enters their own name, address, W-9/W-8BEN information, and bank details. No staff member sees, handles, or stores this sensitive data.
Source: slide 26 - Patient Payment and Financial Processing_Final_8-2026
Reconciliation Log - Finance Access Only
Finance creates and maintains a secured reconciliation log that links the Gusto contractor ID to the corresponding Workamajig project code. The log does not contain any patient name. Access to this log is restricted to Finance only. This log is the bridge connecting the two segregated systems.
Source: slide 26 - Patient Payment and Financial Processing_Final_8-2026
Step 3 - CS Receives Invoice and Updates Monthly Payment Summary
CS receives the contractor's invoice, saves it to the designated secure SharePoint folder, and updates the Monthly Payment Summary spreadsheet with the invoice details including hours, fees, and whether client approval has been received. Finance reviews the summary, and CS then shares it with the client for approval. Once client approval is received, CS saves the email confirmation to the SharePoint folder.
Source: slide 27 - Patient Payment and Financial Processing_Final_8-2026
Pre-Payment Requirements - No Exceptions
No payment may be processed until all four pre-payment requirements are satisfied: (1) valid consent is on file and validated; (2) a fully executed contract is on file; (3) the contractor is onboarded in the approved payment system (Gusto); and (4) the engagement activity is scheduled or completed. No exceptions are permitted regardless of payment amount.
Source: slide 29 - Patient Payment and Financial Processing_Final_8-2026
Step 4 - CS Sends Payment Approval to Finance
After all pre-payment requirements are confirmed, CS sends Finance a payment approval notice that includes the updated Monthly Payment Summary spreadsheet and the client's written confirmation of approval attached.
Source: slide 27 - Patient Payment and Financial Processing_Final_8-2026
Prohibited Payment Methods - Gusto Only
Payments may only be made through Gusto. Venmo, Zelle, PayPal, cash, and gift cards are never permitted under any circumstances. Payment exceptions - such as increased amounts, expedited payments, or alternative payment structures - require documented approval from both the client AND Finance before proceeding.
Source: slide 29 - Patient Payment and Financial Processing_Final_8-2026
Step 5 - Finance Processes Payment in Gusto
Finance uses the reconciliation log to match project codes to the correct contractors in Gusto. Gusto then auto-debits the company account and direct deposits payment to the contractor. All payment execution occurs within Gusto; no manual payment transfer is permitted.
Source: slide 28 - Patient Payment and Financial Processing_Final_8-2026
Step 6 - Finance Records Payment in Workamajig
After payment is executed, Finance downloads the Gusto Payroll Journal Report and creates a journal entry in Workamajig. The entry includes the project code, payment amount, and Gusto reference number. No patient names are entered into Workamajig at any point.
Source: slide 28 - Patient Payment and Financial Processing_Final_8-2026
The Golden Rule - Three-System Segregation
The payment system operates on a strict segregation principle: Workamajig knows WHAT (project, hours, amount) but never WHO; Gusto knows WHO (name, bank details, tax ID) but not the project code; and the reconciliation log - accessible to Finance only - connects both systems. This segregation protects patient privacy while maintaining a complete and auditable payment record.
Source: slide 30 - Patient Payment and Financial Processing_Final_8-2026
Bank Account Change Verification and the Gusto Notification Gap
When a contractor requests a bank account change, verbal callback verification to the phone number on file is required before the change is accepted. This control is critical because Gusto does NOT send administrator notifications when a contractor updates their own bank information - this is a known system gap that creates fraud risk if the verification step is skipped.
Source: slide 30 - Patient Payment and Financial Processing_Final_8-2026
Tax Filing and Record Retention
Gusto automatically generates the required tax forms: 1099-NEC for US-based contractors and 1042-S for international contractors. Tax forms must be retained for 4 years; payment records must be retained for 7 years per IRS requirements.
Source: slide 29 - FINAL - Assembled Intelligence - Data Retention Schedule V3
Scenario
You are the CS Lead on an active patient engagement project. A contractor has completed their session and submitted an invoice. The client has approved the invoice via email and you have saved the approval to SharePoint. Finance is ready to process the payment. The contractor then contacts you directly and says they are traveling internationally and need the payment sent today via Zelle because their US bank account is temporarily inaccessible. They ask you to make an exception to hit the deadline.
The contractor is requesting payment via Zelle as a one-time exception due to an urgent deadline. What is the correct response?
Incorrect. Client approval on file satisfies one of the pre-payment requirements, but it does not override the absolute prohibition on non-Gusto payment methods. Compelling circumstances do not create exceptions.
Correct. The policy is categorical: payments may only be made through Gusto. Zelle is explicitly listed as a prohibited method. There are no exceptions to this rule - not for urgency, not for amount, not for client approval status.
Incorrect. Finance cannot approve a Zelle payment. The prohibition on non-Gusto methods is absolute. Finance's role is to execute payments through Gusto, not to grant exceptions to prohibited channels.
Incorrect. Documenting an exception after the fact does not make a prohibited payment method permissible. Recording a Zelle payment in the log would still constitute a policy violation.
After declining the Zelle request, the contractor says they have updated their bank account in Gusto to a new account that will be accessible while traveling. Finance is about to process the payment. What must happen before Finance proceeds?
Incorrect. Gusto does NOT send administrator notifications when a contractor updates bank information - this is a documented known gap. A self-update in Gusto is not the same as a verified change.
Incorrect. Email confirmation is not the required verification method. The control specifically requires verbal callback to the phone number on file.
Correct. Bank account changes require verbal callback verification to the phone number on file before any payment is processed. Gusto does not notify admins of contractor-initiated bank changes, making this manual verification step essential to prevent fraud.
Incorrect. A 24-hour wait is not the specified control. The required action is verbal callback verification - waiting without verifying does not satisfy the control.
Knowledge Check
Select an answer to see feedback. This is practice - it does not affect your score.
Which of the following are required pre-payment conditions that must all be satisfied before Finance may process any payment? Select all that apply.
Correct. Valid consent on file and validated is a required pre-payment condition.
Correct. A fully executed contract on file is a required pre-payment condition.
Correct. Contractor onboarded in the approved payment system (Gusto) is a required pre-payment condition.
Correct. Engagement activity scheduled or completed is a required pre-payment condition.
Incorrect. Finance manager verbal sign-off is not listed as a pre-payment requirement. The four listed conditions are the complete checklist.
In the three-system segregation model, which system contains the contractor's name, bank details, and tax ID?
Incorrect. Workamajig knows WHAT - project, hours, and amount. Patient and contractor identifying information may never be entered into Workamajig.
Incorrect. The reconciliation log links the Gusto contractor ID to the Workamajig project code. It does not contain the contractor's name or bank details, and access is restricted to Finance only.
Correct. Gusto knows WHO - it holds the contractor's name, bank details, and tax ID. Staff never see or handle this data directly; the contractor enters it via secure self-onboarding.
Incorrect. SharePoint is used for storing invoices and approval emails, not for contractor identity or banking data.
Gusto automatically generates which tax forms for contractors?
Incorrect. W-2 forms are for employees, not independent contractors. Gusto generates 1099-NEC for US-based contractors.
Correct. Gusto auto-generates 1099-NEC forms for US-based contractors and 1042-S forms for international contractors.
Incorrect. The applicable forms differ by contractor location: 1099-NEC for US contractors and 1042-S for international contractors - not a single 1099-MISC for all.
Incorrect. Gusto handles tax form generation automatically. Contractors do not need to request their own forms from the company.
Key Controls Recap
- [RULE] Workamajig Project Setup - No Patient Names
- [RULE] Reconciliation Log - Finance Access Only
- [RULE] Pre-Payment Requirements - No Exceptions
- [WATCH OUT] Prohibited Payment Methods - Gusto Only
- [RULE] The Golden Rule - Three-System Segregation
- [WATCH OUT] Bank Account Change Verification and the Gusto Notification Gap
- [RULE] Tax Filing and Record Retention
You've completed the Phase 8 learning module.
Return to Dayforce and take the Phase 8 quiz.