Payroll Software
Pros
- Integrates with popular accounting software
- Cost-effective and transparent pricing structure
- Flexibility to customize pay types
Cons
- Limited use for international operations
- Syncing time off information is not as seamless
- Payroll approval is not completely automated
Overview:
OnPay offers an affordable and user-friendly platform for payroll processing and human resources management, specifically designed for small businesses. OnPay was founded in 2007 by CEO Jesse Burgess, who established the brand based on his family’s payroll business. With roots in this industry, the company has expanded and is now headquartered in Atlanta, Georgia. This comprehensive solution provides a range of payroll services, such as unlimited monthly payroll runs, automated tax filings, and support for multiple pay rates and employee compensation methods.
While payroll processing is the primary focus of OnPay, the platform also offers a range of valuable HR tools and features. These include an HR resource library, new hire reporting, and customizable personnel checklists, which can aid in compliance audits. Furthermore, OnPay supports multiple third-party integrations and add-ons, making it a versatile solution suitable for small and expanding businesses across various industries.
Products and Services
OnPay is designed to provide a complete solution for businesses, offering all the necessary tools to handle payroll, employee and contractor taxes, and even employee health and dental benefits. Additionally, the platform includes other essential HR tools to streamline your human resources processes. Upon signing up, you can take advantage of a suite of functionalities.
• HR Tools: Tools such as compliance audits, new hire reporting, employee onboarding, and forms for tax withholding.
• Integrates with various accounting including Xero, Freshbooks, Quickbooks, time-tracking apps, and more.
• PTO: tools feature paid time-off policies that can be customized, calendar and reminders, accrual tracking, and email notifications.
• Benefits: Admins can process dental and health benefits in 50 US states, integrated 401(k) plans, and other types of insurance.
OnPay’s system caters to companies with both W-2 employees and 1099 contractors, accommodating the needs of both worker types. The platform generates year-end tax forms, such as W-2s for employees and 1099s for contractors, at no additional cost. In addition to automated tax filing, OnPay takes care of tax withholding and payment on your behalf. The platform handles tax deductions for federal, state, and local taxes.
OnPay Features
Payroll
With OnPay, you have the flexibility to run payroll as often as needed, without any limitations. This is particularly beneficial for businesses with varying pay schedules or frequent payroll cycles. OnPay supports different pay schedules and rates, accommodating part-time, full-time, and contract workers with varying compensation arrangements. You can choose to pay employees through direct deposit, paper checks, or prepaid debit cards, offering multiple options to suit your employees’ preferences and your business requirements.
Onboarding
OnPay provides a convenient self-onboarding feature for new employees, streamlining the process and saving time for both employers and employees. Additionally, OnPay allows employees to use the platform for managing their time off requests (PTO). Another advantage for employees is that they have lifetime access to their OnPay accounts. This means that even after leaving the company, they can log in and retrieve their pay stubs and tax forms whenever they need them.
Benefits Administration
OnPay offers the ability to select and manage health insurance benefits for your employees, seamlessly integrating them with your payroll system. In addition to providing dental, health, and vision benefits, integrating with a low-fee 401(k) provider enables you to expand your employee benefits package to include retirement savings options. OnPay collaborates with reputable 401(k) providers such as Vestwell and Guideline. While OnPay itself does not charge a service fee for 401(k) administration, there are associated costs in the form of a monthly fee and participant fees.
Tax Filing
Through the self-service employee portal, employees can onboard themselves and provide information regarding their tax exemptions or deductions. OnPay automatically calculates and deducts the necessary taxes from employee wages, ensuring accurate and compliant withholding. Employees have access to their tax documents through the employee portal, where they can conveniently view and retrieve their tax forms when needed.
Reporting and Analytics
OnPay provides a range of payroll and tax-related reports that offer valuable insights into your business’s financial and HR data. The dynamic report designer allows you to customize these reports based on your specific requirements and preferences. OnPay takes care of reporting all new hires to the government on your behalf. This ensures compliance with legal requirements and saves you time and effort in fulfilling this obligation.
Pricing
OnPay operates on a pricing model that consists of a base fee of $40 per month, along with an additional charge of $6 per employee. The company’s pricing page showcases a sliding scale, which helps determine the monthly cost based on the number of employees. The scale starts at $46 for a single person and reaches a maximum of $6,040 for a team of 1,000 individuals. This pricing structure indicates that OnPay primarily caters to small to mid-sized companies.
The subscription fee for OnPay encompasses all the core features and functionalities provided by the platform, except for the cost of any third-party software that you may choose to integrate. This means you have the flexibility to start with a basic setup and gradually add additional features as your business needs evolve.
One of the advantages of OnPay is that there are no limitations on the number of pay runs and pay types you can process. This flexibility is particularly beneficial for fast-growing businesses or those that employ a combination of both employees and contractors.
If you’re interested in trying out OnPay before making a commitment, you have the option to sign up for a 30-day free trial. During this trial period, you will have full access to all of OnPay’s software features, allowing you to explore and test its functionality.
However, it’s important to note that the trial period will commence once OnPay has processed employee information and your bank account is verified. The length of this process may vary depending on your specific payroll experience and the time it takes to complete the verification steps.
Customer Support
OnPay prioritizes ease of setup and usability, but in case you encounter any challenges or have questions, the platform offers various avenues to seek assistance from their customer support team. OnPay provides a comprehensive help center with guides specifically tailored to each tool and feature within the platform. The help center includes helpful resources such as how-to GIFs and walk-throughs. Live chat and phone support are available during weekdays from 9 AM to 8 8 PM ET.
Conclusion:
For small business owners seeking a straightforward and cost-effective payroll solution, OnPay can be a reliable choice. The platform offers several advantages that make it particularly appealing in this context. OnPay offers affordability and scalability for fast-growing companies through its pay-per-new-hire pricing model. This pricing structure allows you to add new hires to your plan without having to upgrade to a higher-priced plan.
However, it’s important to note that as your business grows larger, you may find the need for more advanced HR features and capabilities. While OnPay provides a range of HR tools and features, it may not offer the same level of scalability and depth of functionality as some dedicated HR platforms designed for larger businesses.
