Updated for Q3, 2022
If you’re new to OnPay and your company has already paid wages in 2022, we will need to enter your prior payroll information into your account based on payroll reports provided by you, so be sure to follow instructions for the formatting of these reports.
|Reporting date range||How each report should be totaled|
|Q3: July 1 – Sept. 30, 2022||All payroll information separated by check date, employee, and type.|
|Q2: April 1 - June 30, 2022||All payroll information totaled for the quarter.|
|Q1: Jan. 1 - Mar. 31, 2022||All payroll information totaled for the quarter.|
Your Q3 payroll report must be itemized by employee. Gross wages, taxes, and net amounts paid must be itemized for each employee separately. These totals are needed for OnPay to accurately file returns and year-end reports like W-2s.
We've got you. This article will detail everything you need to send us, but you can always email us at email@example.com 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-NEC 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.
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.
All Federal Taxes, Social Security, Medicare, State Taxes, and Local Taxes, separated by type for correct filing.
All Federal Unemployment Taxes and State Unemployment Taxes, separated by type for correct filing.
Section 125 Deductions
Typically, these include Medical, Dental, and Vision deductions. Make sure they are listed separately.
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.
Other Standard Post-Tax Deductions
Any deductions that take place after taxes. Examples include Roth 401K, child support, garnishments, and advances.
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 (July 1 – September 30, 2022): 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 July 1 – September 30)
- 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.
Q1 (Jan-Mar) and Q2 (April-June) reports: Separated by quarter
For these quarters, you will need to provide two separate reports, one for Q1, and another one for Q2. Each report must include the following details:
- Employer tax contributions
- Employee gross wages
- Any pre orpost-tax deductions
- All pay information for the quarter
Since you’re switching to OnPay in the 3rd Quarter (Jul 1 – Sept 30), we will also need your wages for prior quarters of this year. They must be separated by quarter, but here’s the good news: This time, we won’t need totals separated by each check date. We still need the same info as the current quarter, but reports for Q1 and Q2 can be consolidated reports, with quarterly totals, as shown below.
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 firstname.lastname@example.org!