📝 Overview
This article answers common questions about the payroll onboarding process and provides best practices and pitfalls to help you avoid common mistakes.
❓Onboarding FAQ
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Click the arrow to view frequently asked questions
How long does the onboarding process take?
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Onboarding includes company setup, worker onboarding, and data migration (if workers have been paid in the current year). Company setup can take as little as an hour. Worker onboarding time depends on whether workers are added manually or invited to complete onboarding themselves. The service level agreement (SLA) for data migration is five business days.
For employers without historical payroll data, onboarding can typically be completed within a week. For employers with historical data, plan for at least two weeks.
What taxes do you support?
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As part of the tax filing service, DaySmart Payroll pays and files all taxes directly related to payroll. The most common include:
Federal Income Tax
Employee and Employer Social Security Tax
Employee and Employer Medicare Tax
Federal Unemployment Insurance (FUTA)
State Income Tax (where applicable)
State Unemployment Insurance (SUTA)
Local or jurisdictional taxes (where applicable)
Do you support wage garnishments?
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Yes. DaySmart Payroll supports Child Support Orders, Federal Levies, Creditor Garnishments, and other Miscellaneous Garnishments. At this time, we do not move money associated with wage garnishments. You are responsible for sending payment to the garnishor (the agency or creditor) on behalf of the garnishee (the employee).
Can I preview payroll reports before submitting payroll?
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Yes. You can preview the Payroll Journal, which includes the full payroll cost, before submitting payroll.
What payroll reports are available?
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The standard report available is the Payroll Journal: a detailed breakdown of pay types, deductions, employee and employer taxes, and contributions for each pay period. The Payroll Journal also includes the total cost of payroll, also known as cash requirements.
Do you offer electronic data exchange with third-party benefits or 401(k) administrators?
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Not at this time. DaySmart Payroll does not currently support electronic data exchange with third-party benefits or 401(k) administrators.
Do you file taxes retroactively?
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No. DaySmart Payroll can only file and pay taxes for the current quarter forward. Taxes from previously closed quarters should be filed and deposited before you begin onboarding.
Why do I have an unpaid tax liability?
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Unpaid tax liabilities in the current quarter are common when switching payroll providers. Your previous provider likely withheld taxes from payrolls in this quarter but did not deposit them with the relevant agencies.
When DaySmart Payroll loads your historical wage and tax data, we calculate those same liabilities, present them for your approval, and debit your account for the unpaid amounts. Your prior provider should refund any withheld but un-deposited taxes.
Can I delay the collection of unpaid tax liabilities?
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As a general practice, DaySmart Payroll debits your account for unpaid tax liabilities approximately one week after your first live payroll. This allows time for your previous provider to issue any refunds. In certain cases, depending on your deposit schedule, we may be able to extend that collection window.
What if I disagree with the amount of the unpaid tax liability?
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We'll review it with you. DaySmart Payroll will send you our assessment of the unpaid liabilities for the current quarter so you can compare it to your prior provider's reports. If something doesn't look right, we'll go through the details together. If you can provide proof of deposit from your prior provider, we can mark specific liabilities as prepaid.
✅ Onboarding Do's
Following these best practices will help keep your onboarding on track.
Gather all company-related payroll information before your first onboarding call.
Include all workers paid in the current year, both active and terminated, in the onboarding process.
Set a deadline for workers to complete their onboarding, if they're onboarding themselves.
Provide DaySmart Payroll with access to your prior payroll provider, if possible.
Let us know right away if you need to reschedule or push out your first pay date.
If you miss your first pay date, notify us immediately. We may need to load additional payroll history.
⛔️ Onboarding Don'ts
Avoid these common mistakes that can delay or complicate your onboarding.
Don't wait until the last minute. Payroll deadlines don't move.
Don't claim you have no payroll history if you've paid workers during the current calendar year.
Don't process your first payroll before validating your data migration.
Don't cancel your prior payroll service until you've received the unpaid tax liability letter, if one applies to you.
Don't assume. If anything is unclear during onboarding, reach out to DaySmart Support. We're here to help.