📝 Overview
DaySmart Payroll collects your prior payroll history from the current calendar year to accurately calculate paychecks and prepare and file your payroll tax returns. This article walks you through what to gather, how the data is organized by quarter, and how to submit everything when you're ready.
🛠️ Before You Submit
Before submitting your historical payroll data, make sure the following have been completed in your account:
All workers (including terminated workers) who were paid in the current calendar year have a worker profile.
Pay types have been added to your company profile.
Benefits, time off policies, and deductions have been added to your company profile.
Your pay group and desired first payroll run date have been confirmed.
💡Pro Tip: Your first payroll run date must be at least five business days after DaySmart Payroll receives your complete historical payroll data. Factor this into your timeline when choosing a start date.
📊 What to Gather
The reports you need to provide depend on which quarter you are joining DaySmart Payroll. The quarter you are currently in requires a payroll-by-payroll breakdown. Any quarters already closed require quarterly summary totals only.
Reports by Quarter
Joining in Q1
Payroll-by-payroll breakdown per worker for all payrolls processed so far in Q1, including wages, employee taxes, employer taxes, and benefits/deductions.
Joining in Q2
Quarterly totals for Q1 per worker, including wages, employee taxes, employer taxes, and benefits/deductions.
Payroll-by-payroll breakdown per worker for all payrolls processed so far in Q2.
Joining in Q3
Quarterly totals for Q1 and Q2 per worker, including wages, employee taxes, employer taxes, and benefits/deductions.
Payroll-by-payroll breakdown per worker for all payrolls processed so far in Q3.
Joining in Q4
Quarterly totals for Q1, Q2, and Q3 per worker, including wages, employee taxes, employer taxes, and benefits/deductions.
Payroll-by-payroll breakdown per worker for all payrolls processed so far in Q4.
Required Data for All Reports
Every report you submit, whether for the current quarter or a closed quarter, must include the following for each worker:
Check date or date range
For current quarter payrolls: the individual check date for each payroll run (e.g., 10/15, 10/31).
For closed quarters: the full date range (Q1: 1/1–3/31; Q2: 4/1–6/30; Q3: 7/1–9/30).
Workers covered
Include all workers, active and terminated, who were paid in the current calendar year.
Wages
Break out wages by specific compensation type (e.g., Hourly, Salary, Tips, Bonus, Commission, 1099-NEC).
Employee (EE) taxes
Break out each employee tax individually per worker (e.g., Federal Income Tax, State Income Tax, Social Security, Medicare).
Employer (ER) taxes
Break out each employer tax individually per worker (e.g., FUTA, SUI, Social Security, Medicare).
Benefits & deductions
Break out each benefit and deduction individually (e.g., Child Support, 401K, Roth 401K, Pre-tax Medical Insurance, Post-tax AFLAC).
Identify which benefits are pre-tax and which are post-tax.
🔑 Additional Requirements for 1099 Contractors
If you have paid 1099 contractors this year, a few additional items are required alongside your standard historical payroll data.
Year-to-date 1099 payment records: Records of all 1099 payments made in the current calendar year, preferably in CSV format. These can be a lump-sum total or broken down by payment date.
Personal information for terminated 1099 workers: For any terminated contractors who were paid this year, provide their home address and Social Security number. This information is required to file their 1099 on your behalf.
📍 How to Submit Your Data
Once your reports are ready and you've confirmed they include all required data, contact DaySmart Support to submit. Include the following:
Your pay group and desired first payroll run date (at least five business days out from submission).
Attachments of all required payroll reports.
Any additional or clarifying information relevant to your payroll history.
What Happens Next
After you submit, here is what to expect:
If you have completed all other onboarding tasks, your Pay Workers Readiness Status will update from New Account to Implementations.
The DaySmart Payroll team will begin processing your historical payroll data. This can take up to two weeks.
Once the import is complete, you will receive a confirmation from DaySmart Support.
At that point, your Pay Workers Readiness Status will move from Implementations to Active, and your account will be ready for your first payroll run.
❓ Frequently Asked Questions (FAQs)
Find answers to common questions or additional details that may not be covered in the main instructions.
Click the arrow to view frequently asked questions
Click the arrow to view frequently asked questions
Why does DaySmart Payroll need my prior payroll history?
Click the arrow to see the answer
Click the arrow to see the answer
Your year-to-date payroll history is required for two reasons: to accurately calculate paychecks in DaySmart Payroll (so wage bases and tax withholdings are correct from your first run), and to ensure your payroll tax returns are prepared and filed accurately for the full calendar year.
Do I need to include terminated workers in my reports?
Click the arrow to see the answer
Click the arrow to see the answer
Yes. All workers who were paid at any point in the current calendar year must be included, even if they are no longer employed. This applies to both W-2 employees and 1099 contractors.
What if my prior payroll system can't produce a payroll-by-payroll breakdown for the current quarter?
Click the arrow to see the answer
Click the arrow to see the answer
Contact DaySmart Support before submitting. The team can advise on acceptable alternative report formats based on what your prior system is able to produce.
How long does the historical data import take?
Click the arrow to see the answer
Click the arrow to see the answer
The import process can take up to two weeks after DaySmart Payroll receives your complete data. Plan your first payroll run date accordingly, and make sure it is at least five business days after your submission date.
How will I know when my data has been imported?
Click the arrow to see the answer
Click the arrow to see the answer
You will receive a confirmation from DaySmart Support once the import is complete. At that point, your Pay Workers Readiness Status will move from Implementations to Active.
What if I have both W-2 employees and 1099 contractors?
Click the arrow to see the answer
Click the arrow to see the answer
You'll need to submit both sets of data. Follow the standard payroll history requirements for your W-2 employees, and include the additional 1099 payment records and personal information for any terminated contractors as outlined in the 1099 section of this article.