January brings many challenges for small businesses every year. From trying to close out year-end books to staffing for the holiday season to finalizing payroll and reporting annual returns, it truly is the busiest time of the year. OnPay works hard to make the year-end payroll process as seamless and easy as possible. This Help Section is intended to help clients not only understand everything that is required to be completed but where OnPay team members need client's help.
This checklist is intended to be your guide through the Year-End process. Each help document in the Year-End 2017 section is referenced and linked to throughout this guide. Please ensure you have your information ready for the fast paced processing deadlines of December and January.
Things to do by December 31st, 2017:
- Review all employee information in OnPay to ensure it is accurate and up to date:
- Locate the W-2 Preview in OnPay. Click here for directions.
- Use the W-2 Preview to add up how many employees and contractors you have had for the year. Also, review each employee's data and ensure it is accurate. Please check their address, social security number, and annual pay data to make sure everything is correct prior to processing W-2s.
- Ensure that any end-of-year paychecks are run in OnPay prior to January 1st, 2018, using a December check date. If not, that data will be on next years W-2s.
- If you provided us with payroll data run outside of OnPay when you started, please take the time to review that data one more time to ensure it is accurate. This is the most common reason for amended year-end returns!
- Add 1099 Contractors and ensure that both the new and existing contractors pay is accurate for the year - ALL 1099 DATA IN ONPAY WILL BE REPORTED.
- Click here for a guide on adding and updating 1099 Contractors.
- If you paid contractors completely outside of OnPay, find out whether your accountant or previous service are going to complete and file those 1099s before adding them to OnPay. If they are going to process them, then STOP HERE! You do not need to add any 1099s to OnPay. If you had added some data to OnPay and some is with another provider, we suggest you add all data and update all data in OnPay and allow us to file them. Also, notify the other provider than OnPay will be handling your 1099s.
- If your accountant or previous service are not going to file the returns, please use the reference the article above and add the contractors to OnPay. Then run one payroll with a 2017 check date adding all pay for any newly added contractor, and adding pay to existing 1099s to make their yearly totals add up.
- Add 2% Shareholder Benefits to W-2s
- Make sure you add any shareholder health or auto benefits for 2017 by following these steps: Adding 2% Shareholder Benefits to W-2s.
- Please begin requesting that data from your accountant as early as possible. Data having to be run after December 31st, 2017 incur a processing fee.
Things to do by January 11th, 2018:
- Record Employer Health Care Contributions in OnPay
- If you have paid all or a portion of an employee health insurance premium 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.
- If you have recorded a portion of the benefit amount throughout the year, but it is not up to date, following the steps above will override any data previously entered for the year as a health benefit.
- Choose Your W-2 Processing Option
- OnPay gives you three options when it comes to providing W-2s to your employees. You can find these options defined in the article Choosing W-2 and 1099 Delivery Options.
- The article shows you the options and where to update them in OnPay.
- All options will be locked after the first week in January.
- Review Your FUTA Credit Reduction Amount Owed
- Please take the time to review the total amount owed via a FUTA Credit Reduction for 2017. This information can be found on the dashboard when you log into OnPay.
- Please either reach out by calling 877-328-6505 and let an OnPay team member know you do not want us to draft and pay the tax, or ensure that the appropriate funds are in the bank account from which OnPay regularly draft your taxes.
- If you have chosen to Self-Print, print the W-2s and 1099s for your employees and contractors
- Make sure you have ordered your W-2 and 1099 copies from one of OnPay's recommended providers. See the list of providers and self-print instructions here.
- If you would rather OnPay provide the W-2s, simply log into your OnPay account and update your choice on the dashboard. If those options are no longer available on the dashboard, contact us directly to find out if the printed options are still available.