Adding and paying contractors is easy. In OnPay, you set a contractor up just like an employee except you add a 1099 pay type. We have created the following guide for you to use when adding the contractors. Once they are all added, please come back to this article to finish the steps of adding annualized pay for contractors.
Once you have added the 1099 contractors to OnPay, you will need to make sure you add all of the pay from 2017. The sum total of this pay should include any checks that you are going to write to contractors with a 2017 date.
You may have a mix of contractors that you have added in OnPay, along with some that you have never paid in OnPay, and possibly some data for contractors that you paid prior to starting with OnPay that you never reported to us. At this point, it is time to identify each contractor paid through 2017 has been added to OnPay, and calculate their total 2017 pay. Another important step is informing any previous payroll providers, accountants, bookkeepers, etc that OnPay will be handling the reporting of all 1099 contractors for the year. Please note, OnPay will report all 1099 data in OnPay AS IS. If you fail to update the data in OnPay, or if the data is reported twice because another provider also reports it, you will be solely responsible for correcting any misfilings.
Once you have identified every contractor paid, entered them in as workers in OnPay, added up the total compensation paid to each contractor, and notified any other/previous providers not to file the data, you can run the data through OnPay.
1. Start a pay run and choose the contractors that need to be paid.
- Some may have already had some pay ran through OnPay and you simply need to put the remaining amounts in.
- Some may have never been paid in OnPay so you will need to add the total annual compensation.
2. Update the check date, period start and end date, and make sure that direct deposit is held for the pay run.
- When on the Select Employees page of the pay run, click on any of the blue items at the top to get the pay run settings dialog (check date, period start or end date, check #, pay schedule etc.)
- We suggest entering a check date of 12/31/2017, and a period start and end date of 1/1/2017-12/31/2017 so you can show that the pay represents the entire year.
- Also, check the box beside "Hold all direct deposits and process as live checks?" to make sure that the pay is not accidentally direct deposited to the workers you are adding annual data for.
3. Move on to the "Enter Hours" step and enter pay using the 1099 pay type. Simply check the box beside 1099 Misc Wages and enter the pay amount in the override box.
- Make sure to uncheck any other pay types, or clear any other wages out prior to continuing to the review payroll step or you may accidentally include other types of pay.
4. Review the payroll and approve it.
All of these steps need to be completed prior to or on 12/31/2017 with a check date in 2017.
As always, if you have any questions or concerns please give our Client Experience team a call at 877-328-6505 9AM-8PM ET Monday-Friday.