With the end of the year almost here, we know many clients will be running bonus pay runs and wanted to clarify some rules regarding these payrolls.
Many times, the 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.
Also, 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 business days before the check date. If you wish to run those bonuses for a date of December 31st, please complete the run no later than December 22nd 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.
How to Run a Bonus Payroll in OnPay
1) From the Dashboard, start your upcoming payroll by clicking "Start Pay Run"
2) While on the Select Employee screen, Click the "Check Date" at the top, center of the screen.
3) This will open a window where you can change the Check Date, Period Dates for the payroll, and stop employee deductions from occurring on this run. In this window, you can select to run the payroll for paper checks instead of direct deposit.