Employer Account Standing

Employer Account Standing is the compliance and risk gate an employer must clear to operate on Salsa. It reflects the outcome of KYB and AML screening, sanctions checks, and ongoing risk review.

Account Standing runs in parallel with Employer and Pay Worker Readiness:

Readiness answers the operational question: does Salsa have the data it needs to calculate payroll?
Account Standing answers the compliance question: is the employer allowed to operate on the platform?

Both gates are independent and both must clear before payroll can run. An employer with READY readiness but RESTRICTED standing still cannot pay workers.

How to track account standing

Employer Account Standing data can be accessed from:

The Salsa Dashboard
The webhook event Employer.AccountStanding.statusChanged

Statuses

Use the following states to track an employer's account standing:

Status	Description
`NEW_ACCOUNT`	When an employer is created, they initially enter the `NEW_ACCOUNT` state and remain there until they complete all requirements necessary for Salsa to initiate KYB and AML processes. The necessary data to start these processes can either be collected directly from the employer using the onboarding component or imported using Paystream if it has already been gathered.
`IN_REVIEW`	The account transitions to the `IN_REVIEW` status once it meets all new account requirements, at which point both the employer and their workers are screened and verified. Upon successful verification, the account moves to the `ACTIVE` status. Note:* In the Sandbox environment, all employers are automatically approved and directly moved to ACTIVE.
`ACTIVE`	Once approved and with no outstanding requirements, the employer’s account status is updated to an `ACTIVE` state where they can operate without restrictions. Note:* In the Sandbox environment, all employers automatically transition to this unrestricted state upon completion of requirements.
`CONDITIONAL`	When an employer receives conditional approval, they enter the `CONDITIONAL` state while Salsa performs additional due diligence. During this period, there may be outstanding requirements for the employer or some workers. This status often applies to employers who have previously made payments to workers but have added new workers or undergone screenings that Salsa has marked as conditional.
`RESTRICTED`	An account enters the `RESTRICTED` state if it has outstanding requirements that prevent the company from paying workers. In this situation, employers might receive a Request for Information (RFI) that is escalated to your customer support team. After the necessary information is submitted, Salsa reassesses the employer and their workers to potentially lift the restrictions.
`REJECTED`	An account enters the `REJECTED` state if it operates at an extremely high risk level or within an industry that Salsa cannot serve. Although it is rare for companies to reach this state, the likelihood varies based on the industry vertical served and the volume of employers being onboarded.
`CANCELLED`	An account enters the `CANCELLED` state if the employer's subscription was cancelled.

The following is the typical account standing flow:

graph LR

%% Nodes
Employer_Created((Employer created))
NEW_ACCOUNT["NEW_ACCOUNT"]
IN_REVIEW["IN_REVIEW"]

RESTRICTED["RESTRICTED"]
CONDITIONAL["CONDITIONAL"]
ACTIVE["ACTIVE"]

REJECTED["REJECTED"]

%% Flow
Employer_Created --> NEW_ACCOUNT
NEW_ACCOUNT --> IN_REVIEW

%% Review outcomes
IN_REVIEW --> REJECTED
IN_REVIEW --> RESTRICTED
IN_REVIEW --> CONDITIONAL
IN_REVIEW --> ACTIVE

%% Restricted transitions
RESTRICTED --> REJECTED
RESTRICTED --> CONDITIONAL
RESTRICTED --> ACTIVE

%% Conditional transitions
CONDITIONAL --> RESTRICTED
CONDITIONAL --> REJECTED
CONDITIONAL --> ACTIVE

%% Active transitions
ACTIVE --> RESTRICTED
ACTIVE --> CONDITIONAL
ACTIVE --> REJECTED


%% Node styles
style Employer_Created fill:#6a1b9a,color:#ffffff
style NEW_ACCOUNT fill:#ffeb3b,color:#000000
style IN_REVIEW fill:#2196f3,color:#ffffff
style RESTRICTED fill:#f44336,color:#ffffff
style CONDITIONAL fill:#fbc02d,color:#000000
style ACTIVE fill:#8bc34a,color:#000000
style REJECTED fill:#000000,color:#ffffff


%% Theme-safe link styles
%% NEW_ACCOUNT
linkStyle 0 stroke:#d4c84a

%% IN_REVIEW
linkStyle 1 stroke:#4fa3e3

%% To REJECTED (neutral)
linkStyle 2 stroke:#9e9e9e

%% To RESTRICTED
linkStyle 3 stroke:#e57373

%% To CONDITIONAL
linkStyle 4 stroke:#e6c55a

%% To ACTIVE
linkStyle 5 stroke:#9ccc65

%% To REJECTED
linkStyle 6 stroke:#9e9e9e

%% To CONDITIONAL
linkStyle 7 stroke:#e6c55a

%% To ACTIVE
linkStyle 8 stroke:#9ccc65

%% To RESTRICTED
linkStyle 9 stroke:#e57373

%% To REJECTED
linkStyle 10 stroke:#9e9e9e

%% To ACTIVE
linkStyle 11 stroke:#9ccc65

%% To RESTRICTED
linkStyle 12 stroke:#e57373

%% To CONDITIONAL
linkStyle 13 stroke:#e6c55a

Employer Readiness — the operational gate that runs in parallel with Account Standing.

How to track account standing

Statuses

Related