Switching something as important as who handles your payroll and tax filings can be stressful. That's why we always take care of entering all of your employees' information, including their prior pay history, so that you can rest assured your tax filings and deductions are always 100% accurate. So what do we need from you? In this article, we’ll cover everything you’ll need to ease your transition with no surprises!
Informing your current provider of the switch
Unless you’re switching to OnPay at the beginning of a quarter, you will want to inform your current payroll provider of the switch, asking them not to file the current quarter’s unemployment taxes, as we will be doing this filing.
State IDs and rates
During the enrollment process, you’ll be asked to provide your company’s State Withholding ID as well as the Unemployment ID and SUI Rate assigned to your company. We rely on this information to accurately calculate and file tax forms on your behalf.
Find tax rates and other key information for your state
Filing taxes
Along with your IDs and tax rates, certain states require additional permissions for OnPay to file tax forms. These requirements are state specific and can be accessed below. When filing your taxes, we’ll need this access to avoid possible penalties and interest charges.
Employee tax elections
Per IRS guidelines, OnPay defaults all W-2 employees a Single/0 tax election unless otherwise indicated by the employee during their enrollment. If you invite them to self-onboard, employees can choose their tax election during their self-enrollment process. Otherwise, an administrator in your company can indicate this when setting up the employee profile.
Payroll processing
OnPay uses in-app notifications when processing payrolls to alert you about missing forms or data, and to make you aware of changes that need to be addressed. This helps mitigate potential errors when processing. In the event you discover an error after processing payroll, don’t worry. You can easily cancel the pay run and revise any payroll information needed, as long as we haven’t drafted your business account for the payroll taxes.
Direct deposits for employees
We make it easy to offer direct deposit to all, or just some of your workers. When employees see a direct deposit in their personal account, it will appear with your company name and not OnPay. This keeps workers from getting confused by your switching of payroll providers.
Document retention
OnPay enables you to upload documents directly to employees’ and contractors’ profiles. While this is not meant to take the place of the legal requirement to house documents for certain time frames, it is a great tool your company can utilize to help stay organized and up-to-date.
Worker’s compensation
Worker’s Compensation coverage is required in a majority of states. And where it’s not required, many employers still offer it because we’ve made it so easy. If you don’t currently have coverage for your employees, but would like to learn more about how we can help get you and your employees covered, schedule a free consultation with one of our experts!
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