If you’re new to OnPay and your company has already paid wages in 2021, we need to enter your prior payroll information into your account based on payroll reports provided by you. Your payroll reports must be itemized by employee, so we can accurately file returns and year-end reports like W-2s. Include itemized gross wages, taxes, and net amounts paid for each employee separately. This article will detail everything you need to send us, but you can always email us at firstname.lastname@example.org for help!
What we’ll cover
- Employee and contractor setup
- Entry of prior payroll information
- Where you can find the reports we need
- How prior pay should be categorized
- How prior pay should be totaled
- How to send us your files
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 setup
We’ll be glad to enter all your employees and contractors for you. You must include any terminated employees and contractors receiving a W-2 or 1099 this year. Just send us your employee details, and include the following information:
- Social security number*
- Birth date
- Hire date
- Tax elections
- Rate of pay (per pay period or per hour)
*Note: You MUST include Social Security Numbers (SSN) and pay rates for every employee.
Entry of prior payroll information
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.
Note: Payroll tax filings report pay information and taxes based on the check date, not the pay period. For example, if the pay period covers Dec 11th - 23rd, but the check date is Jan 1st, then it will be filed as part of Q1 of the new year.
Where you can find 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 should be categorized
Your reports should be separated by pay category. Make sure to include the following wages, taxes and deductions:
- Gross Wages
- Employee Taxes
- Employer Taxes
- Section 125 Deductions
- Other Pre-Tax Deductions
- Other Standard Post-Tax Deductions
In many cases, there will be multiple pay types within each of the above categories. For example, gross wages should include regular, overtime, sick, and holiday hours, all listed separately as seen in the below examples of pay categories explained.
Pay categories explained
All regular wages and hours, which should be separated into 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.
All Federal Taxes, Social Security, Medicare, State Taxes, and Local Taxes, 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 here. You must provide all tax totals for each employee.
All Federal Unemployment Taxes and State Unemployment Taxes, 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. Make sure they are listed separately.
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. Make sure they are separated by employee.
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. Examples 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 should be totaled
Now that you know how we need your info 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 (Jan 1 – March 31, 2020): Separated by check date
You will need to provide the following:
- 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 January 1 - March 31)
- By employee: Check dates should be separated by each employee
- By type: Separated by 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 files
Secure File Transfer is the safest way to send us sensitive information like employee social security numbers online. Please make sure your reports are as previously described in this article. 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 email@example.com!
v6.0 ps Q1