At the end of the year, many clients will be running bonus pay runs. There are a few things to keep in mind:
- Direct deposit limits: Many times, a bonus payroll can exceed your pre-approved direct deposit limit. Please be aware that in some cases, when the amount exceeds your limit, a wire may be required to pay your employees by the date of your choice.
- IRS Next-Day Rules: Keep in mind that bonus runs qualifying for the IRS Next-Day Rules (i.e. runs resulting in $100,000 or more in federal tax liability) must be run five (5) business days before the check date. If you wish to run those bonuses for a check date of December 31st, please complete the run no later than December 23rd so we have time to properly draft the funds and remit the tax payment. If you cannot provide enough time for OnPay to draft the funds, you may be required to wire those funds to OnPay or deposit the taxes with the IRS directly.