Updated for Q1, 2023
If you’re new to OnPay, and your company has already paid wages in 2022, we will need your prior payroll information by way of payroll reports provided by you, in order to correctly calculate withholdings and deductions, and process year-end forms and filings. The accuracy of these calculations and filings depends on the prior payroll information provided by your reports.
What we’ll cover
- Employee and prior payroll data migration and setup
- Where you can run the reports we need
- How prior pay reports must be categorized
- How prior pay reports must be totaled
- How to send us your reports
- Our Tax Accuracy Guarantee
Frequently asked questions
Who needs prior payroll information recorded?
W-2 Employees: All active and terminated employees receiving a W-2 for this year will need to be added to your OnPay account, including their prior payroll information.
Contractors: All contractors needing a Form 1099 from OnPay for this year will need to be added to your OnPay account, including their prior payroll information.
Learn more about how to classify employees.
Will OnPay enter my company’s prior payroll information?
Yes! And at no additional cost. Simply send us the employee data as described in this article, and we will take care of it.
Why is it so important to provide prior payroll information?
It is crucial that you provide this information to OnPay for several reasons:
- An employer can only issue one W2 per employee in the calendar year.
- Your employees can overpay taxes, creating a financial hardship.
- Improper reporting of wages can cause employer penalties and interest.
- An employer can overpay their Federal and State Unemployment Taxes if not reported correctly.
Where is this information located?
Typically, your current payroll provider will have reports that contain this information. It may be a Payroll Summary or in an Employee Detail Report that can be filtered by pay date.
Employee and contractor migration and setup
We’ll be glad to enter all your employees and contractors for you. Just send us your employee details, including any terminated employees and contractors receiving a W-2 or 1099-NEC from you this year. For this report, each employee must include the following information:
- Name
- Address
- Social security number*
- Birth date
- Hire date
- Tax elections
- Rate of pay (per pay period or per hour)
*Note: You MUST include a verified Social Security Number (SSN) for each employee.
Prior payroll data migration and setup
Once your employees and/or contractors have been entered into OnPay, we’ll begin entering their prior wages for this calendar year. Keep in mind, there are some specific totals that we must have, so follow this guide carefully when providing your prior pay info to OnPay.
IMPORTANT: CATEGORIZE PAYROLL TAX FILINGS BY CHECK DATE
Payroll tax filings report pay information and taxes based on the check date, not the pay period.
For example, if the pay period covers September 16th - 30th, but the check date is October 7th, then this pay must be included in your Q4 report.
Where you can run the reports we need
From your current payroll provider, you’ll need to run a few reports. Depending on the provider, these reports may have different names. What’s important is that the report is categorized and totaled as detailed in the next two sections.
How prior pay reports must be categorized
Your reports must be separated by pay category. Make sure to include the following wages, taxes and deduction categories:
- Gross Wages
- Employee Taxes
- Employer Taxes
- Section 125 Deductions
- Other Pre-Tax Deductions
- Other Standard Post-Tax Deductions
These categories may also have multiple pay types. For example, gross wages will include regular, overtime, sick, and holiday hours, and will all be listed separately on your report, as seen in the below examples of pay categories explained.
Pay categories explained
Gross Wages
All regular wages and hours, must be separated into clear categories such as regular, overtime, bonuses, commissions, etc.
Note: Your report may look very different than this example, depending on your report generator. What’s important is that all earnings are separated by pay category.
Employee Taxes
All Federal Taxes, Social Security, Medicare, State Taxes, and Local Taxes, must be separated by type for correct filing.
Note: Your report may look very different than this example, depending on your report generator. What’s important is that all earnings are separated by pay category.
Employer Taxes
All Federal Unemployment Taxes and State Unemployment Taxes, must be separated by type for correct filing.
Note: Your report may look very different than this example. Your state or local district may require taxes that do not appear in this example. You must provide all employer tax totals for each employee.
Section 125 Deductions
Typically, these include Medical, Dental, and Vision deductions. Section 125 deductions must be listed separately by type for correct filing.
Note: Your report may look very different than this example. You may offer benefits or deductions that do not appear in this example. Provide all employer contribution totals itemized per employee.
Other Pre-Tax Deductions
Any other pre-tax deductions that affect taxable wages. Typically, these include your 401K, Traditional IRA, and Commuter Benefit deductions. All pre-tax deductions must be separated by employee. for correct filing
Note: Your report may look very different than this example. You may offer benefits that do not appear here. You must provide all pre-tax employer contribution totals per employee.
Other Standard Post-Tax Deductions
Any deductions that take place after taxes must be listed separately to ensure correct filing. Examples of post-tax deductions include Roth 401K, child support, garnishments, and advances.
Note: Your report may look very different than this example, and may have post-tax deductions that do not appear here. Itemize all post-tax deductions for each employee.
How prior pay reports must be totaled
Now that you know how we need your reports categorized, let’s talk about how it should be totaled. To enter your prior payroll information accurately, we’ll need your report to be separated by check date, so follow these instructions carefully to ensure that there are no mistakes come tax time.
Current quarter report (January 1 – December 31, 2022): Separated by check date
You will need to report the following for the current quarter:
- Employer tax contributions
- Employee gross wages
- Any pre or post-tax deductions
- All pay information for the quarter separated by check date, by employee, and by type.
- By check date: Separate each paycheck issued during the quarter (Only include checks dated between October 1 – December 31)
- By employee: Each separated check date must also report separate employees paid
- By type: This pay for each employee must also be separated by pay type (Social security, Medicare, federal and state taxes, etc.)
This information must detail amounts paid for each employee, company taxes, and all net wages as shown below:
Note: Your report may look very different than this example, depending on your report generator. What’s important is that the information detailed here is present.
How to send us your reports
Upload your PDF or Excel files with Secure File Transfer→
Secure File Transfer is the safest way to send us sensitive information like employee social security numbers online. Please make sure your reports are totalled separately quarter, by category, and by employee (as directed) before uploading your reports. Then, click the link above, and follow these steps:
Enter your name and email, and click Continue to add your files.
You can drag and drop, or browse for your files, adding as many as you need to provide all of the required information.
Click Send these files when you’ve added your reports. You can add as many as needed.
Questions? Email us at hello@onpay.com!
Our Tax Accuracy Guarantee
Bottom line: We take the accuracy of our payroll tax calculations very seriously — and our accuracy guarantee ensures we’ll always have your back.
However, because we file on your behalf using information provided by you, it's important that you provide and input accurate information about your company, its employees, and the states and districts in which they live and your business operates, including all IDs and tax rates. Our Tax Accuracy Guarantee picks up where you leave off by covering all our calculations, and the filings and payments we base on them.
In rare circumstances, OnPay may need additional information from you, or may request you take action in order for us to file and pay your taxes. If such information is requested by us, but never provided by you, any affected tax filings and payments will not be covered by our Tax Accuracy Guarantee.
v6.23.Q1