OnPay highlights small business payroll errors and its platform as a solution

The Cost of Payroll Mistakes

Small businesses often encounter substantial financial setbacks due to payroll errors. One business owner, Julie Loe, experienced tax notices because her payroll provider failed to handle tax filings correctly. These errors can escalate, turning routine payments into significant problems for businesses.

A KPMG report indicates that payroll errors can cost a business up to 5% of its total payroll spend. For a company with 15 employees earning an average of $50,000 annually, this could amount to nearly $40,000 in avoidable losses each year.

OnPay's Solution for Small Businesses

OnPay is presented as a payroll and HR platform designed for small businesses and their accountants. The platform integrates automation and expert support to identify and resolve issues before they become critical. It aims to prevent common errors that lead to financial penalties.

The platform helps business owners like Sheila Cole, who opened The Wizard of Paws Pet Salon, manage complex back-office tasks. Cole, responsible for W-2 filings, tax withholdings, and worker classification for nine employees, sought tools to automate these processes.

Addressing Worker Misclassification

Worker misclassification, incorrectly labeling an employee as an independent contractor, is a frequent and costly payroll error for small businesses. This issue is taken seriously by the IRS, Department of Labor, and state agencies, potentially leading to penalties such as back taxes, interest, and fines.

OnPay allows businesses to manage both full-time W-2 employees and 1099 contractors from a single dashboard. It also includes features like built-in e-signatures and digital onboarding to guide new hires through necessary documentation, such as W-4s and I-9s, reducing the burden on business owners.