Any adjustments to a pay run that has already been processed must be received by OnPay no later than Friday, December 13, 2024 to ensure the timely completion of the W-2 information update. This includes supplemental wages and Third-Party Sick Pay (with notice provided by an insurance company).

Third Party Sick Pay

Third Party Sick pay includes any insurance payments received by an employee through an insurance company and is considered earned income for the employee. The insurance company will provide a notice that details what should be added to the employee's income. To have these amounts added to the employee's W-2, please send the notice to OnPay. These items must be received no later than Friday, December 30th to ensure timely completion of the W-2. You can review any Third Party Sick Pay entries on the W-2 Preview.  

Note: Third-Party Sick Pay can only be added to employee W-2s by OnPay, and only upon our receiving a copy of the notice provided by an insurance company what should be added to the employee's income.

Ensure all bonus payroll entries are submitted by December 23, 2024

If you need to submit bonus pay runs before year-end, allow enough time for them to process in 2024. Depending on the amount, bonus pay runs often require extra time due to IRS Next-Day Rules and pre-approved direct deposit limits.

How to run Year-End Bonus Payrolls→

Ensure that all 2024 pay has been submitted with enough time for wages to be received by December 31, 2024. This includes any supplemental pay, like bonuses or tips.

While banks are closed on Christmas Day, submitting pay runs on the 25th will have no impact on your turnaround time. See Pay schedules that are impacted by Christmas bank closures→

Ensure that any additional contributions toward employee retirement plans are received before year-end.

Depending on the amount, bonus pay runs often require extra time due to IRS Next-Day Rules and pre-approved direct deposit limits.

Confirm the following information in Company Profile:

• Company name is spelled correctly
• Company address is accurate
• Federal Employer Identification Number

Confirm the following information in Payroll Taxes:

• State Tax ID for each state where you pay employees
• Federal Employer Identification Number

Confirm that the following information is accurate for all employees and contractors paid in 2024:

Employee data

• Confirm that employee names are correctly spelled
• Update home addresses/mailing addresses for both active and terminated employees
• Verify that employee Social Security numbers are correct

Contractor data

• Confirm that contractor/business names are spelled correctly
• Update mailing addresses for active and terminated contractors
• Verify that Social Security numbers, ITINs, and Employer Identification numbers are correct

Ensure all payroll entries are completed by Tuesday, December 31

To ensure that all tax payments can be made on time, all contractor payments, W-2 earnings, and bonuses, must be completed in OnPay by Tuesday, December 31, 2024. Any entries not made by Sunday, December 31, 2024, could result in IRS and/or State Penalties and Interest which would be the sole responsibility of the employer.

S-Corp Shareholder (2% or More) Benefits

If your business is organized as an S-Corp, add any shareholder health or auto benefits for 2024 by following these steps: Adding 2% Shareholder Benefits to W-2s.

Record Employer Health Care Contributions 

Has your business paid all or a portion of any employee health insurance premiums throughout the year? That data needs to be reported on each employee's W-2, along with any premiums that the employee has paid toward a company-provided plan. You can find out how to Record Health Care Contributions in OnPay here.

Fringe Benefits

Services like personal use of company cars, gift cards, and gym memberships are taxable. Ensure that entries which document any fringe benefits received are made to an employee's payroll history.  For more information on Taxable Fringe Benefits, please refer to IRS Publication 15-B.

Update deposit frequencies and tax rates

All new withholding deposit frequencies and unemployment tax rates with an effective date of January 1st, 2025 must be entered into OnPay on or before December 31, 2024. 

Review Federal and State Law Changes that may impact your business

A number of states across the US have payroll-related changes that will take effect in 2025.  These changes include Minimum Wage changes, updated state unemployment wage bases, and new Paid Sick or Family Leave Laws. These changes are announced state-by-state, and are updated accordingly.  

If your state unemployment rate is changing for 2025, please make sure to update your OnPay account with the new rate before January 1, 2025.

Beneficial Ownership Reporting (BOI) filing deadline

Companies that were registered to do business before January 1, 2024, must file their initial Beneficial Ownership Information report by January 1, 2025. To simplify this new requirement, OnPay has partnered with Dibble, a leader in providing BOI registration services for new businesses, to help you file your BOI report for you.

Learn more about Dibble→

Order New Compliance Posters

With all the changes states have recently made, it's a good idea to order new posters for your office. Follow the below link to see what's changed. You can even order new posters!

View the changes and order posters→

Any business that is required to report beneficial ownership information, and was registered to do business before January 1, 2024, must file their initial Beneficial Ownership Information report by January 1, 2025.

OnPay has partnered with Dibble, a leader in providing BOI registration services for new businesses, to help you file your BOI report for you.

Learn more about Dibble→

On top of providing workers with lifetime digital access to their W2s and 1099-NECs, OnPay makes it easy to deliver printed forms to employees and contractors, either by self-print or direct mail.

Self-print

This option comes at no extra fee, and lets you to manage the printing and distribution of these forms on your own.

• Download year-end forms from OnPay
• Print these forms on 8.5"x11" printer/copy paper, using a home or office printer
• Distribute these printed forms to your workers, either by hand or by mail
• Hand-delivered forms must be received by 1/31/24
• Mailed forms must be postmarked by 1/31/24

Direct mail 

Let OnPay manage the printing and distribution of these forms for you. We'll print, pressure-seal, and mail these forms directly to your employees and contractors.

• $9.99 per form
• Each worker's form is delivered to the address listed in their OnPay profile
• Workers typically receive their forms in the mail between January 24th-31st

All employees and contractors paid through OnPay have lifetime access to digital copies of these forms through their OnPay portal, or in the OnPay mobile App.

See year-end form delivery options→

• All workers must be in possession of their year-end forms by or before January 31, 2025 
• If you opted to print your own W-2’s and 1099’s, you are required to postmark or provide copies to employees no later than 1/31/25