OnPay — Independent Software Review

Simple, powerful payroll for small businesses.

Compliance Transparency Index

Grade: A — Score: 95/100

Best For

• Small businesses with 1-100 employees that want payroll, HR, and benefits in a single platform without tiered pricing.
• Companies operating in multiple U.S. states. OnPay includes multi-state payroll at no extra charge, unlike competitors that add surcharges per state.
• Businesses new to payroll that want hands-on setup support. OnPay's team handles data migration, employee imports, and prior wage entry at no cost.
• Accounting firms managing payroll for multiple clients. OnPay's partner program includes a dedicated firm dashboard, co-branding, and volume discounts starting at 10%.

Not Ideal For

• Businesses with international employees. OnPay only processes payroll for U.S.-based W-2 employees and 1099 contractors. It does not support global payroll or international tax compliance.
• Companies that need a built-in time clock. OnPay does not include native time tracking. Users must integrate a separate tool like When I Work or Deputy.
• Large enterprises (500+ employees) that require advanced workforce management, custom reporting, or dedicated account management. OnPay is built for small to mid-size businesses.
• Organizations that need HRIS features like performance reviews, applicant tracking, or learning management. OnPay covers onboarding and PTO but not the full HR lifecycle.

Operational Overview

Pricing Structure

OnPay: $49/month + $6/person/month

• Full-service payroll for W-2 and 1099 workers in all 50 states
• Unlimited pay runs per month
• Automated federal, state, and local tax filing with accuracy guarantee
• Direct deposit, paper checks, and pay cards
• HR tools: onboarding, PTO tracking, org charts, document storage
• Benefits administration: health, dental, vision, 401(k), workers' comp
• Employee self-service portal with lifetime access to pay stubs
• Free setup, data migration, and dedicated onboarding support

Alternative Consideration

Consider switching to Gusto: Gusto offers similar payroll services with additional HR features that may appeal to some users.

Frequently Asked Questions

How does OnPay compare to Gusto for small business payroll?

Both platforms offer full-service payroll in all 50 states with unlimited pay runs. OnPay charges $49/mo + $6/person with all features included in one plan. Gusto's Simple plan starts at $49/mo + $6/person but locks multi-state payroll, time tracking, and advanced HR tools behind the Plus plan at $80/mo + $12/person. OnPay includes benefits administration, PTO tracking, org charts, and compliance audits at the base price. Gusto offers more integrations (130+ vs OnPay's ~10), faster direct deposit (2-day standard vs OnPay's 2-4 day), and built-in time tracking on higher tiers.

Does OnPay handle payroll taxes automatically?

Yes. OnPay calculates, withholds, files, and pays federal, state, and local payroll taxes automatically. This includes quarterly filings (940, 941) and year-end forms (W-2, 1099-NEC) at no extra charge. OnPay also offers an accuracy guarantee: if they make a tax filing error, they will work with the IRS and cover any penalties, provided the employer submitted accurate data on time.

Can OnPay process payroll for international employees?

No. OnPay only supports payroll for U.S.-based W-2 employees and 1099 contractors. It does not handle international payroll, global tax compliance, or Employer of Record (EOR) services. Businesses with international workers should consider platforms like Deel (from $49/mo per contractor, EOR from $599/mo per employee) or Rippling, which supports payroll in 160+ countries.

Does OnPay include time tracking?

OnPay does not have a built-in time clock or time tracking feature. It integrates with third-party time tracking tools like When I Work, Deputy, and QuickBooks Time. Hours logged in those tools sync to OnPay for payroll processing. G2 reviewers frequently cite the lack of native time tracking as a drawback compared to competitors like Gusto, which includes time tracking in its Plus plan.

What industries does OnPay specialize in for payroll?

OnPay supports industry-specific payroll requirements for restaurants (tip calculations, tip credits), farms and agriculture (Form 943, H-2A visa workers), nonprofits (501(c)(3) exemptions), churches and religious organizations (parsonage exemptions, clergy payroll), healthcare, retail, and franchises. These specialized tax filings are included at no extra cost. CPA Practice Advisor has consistently rated OnPay as a top payroll solution for its industry-specific coverage.

How long does OnPay direct deposit take?

OnPay's standard direct deposit processing takes 2 to 4 business days. This is slower than some competitors. Gusto offers 2-day direct deposit on all plans and next-day deposit on its Plus and Premium plans. OnPay does not currently offer same-day or next-day direct deposit options.

Does OnPay offer health insurance and 401(k) benefits?

Yes. OnPay is licensed to administer benefits in all 50 states. In-house benefits specialists help employers select health, dental, vision, and life insurance plans from premier carriers. OnPay also supports 401(k) retirement plan administration and pay-as-you-go workers' compensation insurance. Premiums and contributions are deducted automatically through payroll. The benefits administration is included in the $49/mo + $6/person plan with no additional platform fee.

Is OnPay secure for storing employee data?

OnPay is SOC 2 compliant and uses AES-256 encryption for data at rest and TLS 1.2 for data in transit. The platform is hosted on AWS with daily backups, and supports multi-factor authentication (MFA) and single sign-on (SSO). OnPay also provides role-based access controls so employers can limit who views sensitive payroll data. The platform is HIPAA and GDPR compliant.

AI Visibility Report

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