Payroll Limitations

Limitations and Restrictions

Below are a list of the types of workers, businesses and industries that will not be able to utilize OnTheClock Payroll. If you have any questions about your ability to enroll in this service, please reach out to our support team support@ontheclock.com

Types of workers

• Government employees
• Employees with addresses located in Puerto Rico or the US Territories
• Clergy (Pastors)
• Household employees
• Non-resident aliens 
• Railroad employees
• H-2A and H-2B visa workers
• Special taxation for American Indians or individuals working on tribal reservations

Types of companies

• Agricultural employers
• Government and federal contractors
• PEOs (or companies migrating from PEOs)
• Nevada Financial Institutions
• Companies located in Puerto Rico and the US Territories
• Pass through entities
• Companies with over 1,000 active or inactive workers on a single EIN
• Common Paymaster

Types of industries

• Gambling such as physical locations, online gaming, lottery, games of chance, or fantasy sports leagues.
  Marijuana sales or dispensaries
• Sale of guns and/or ammunition
• Sale of flammable and combustible substances
• Drug paraphernalia used to produce or consume controlled substances, including bongs
  or glass pipes commonly used to consume marijuana
• Adult entertainment business which either directly or indirectly provide sex-related
  services
• Virtual currency (e.g., Bitcoin) and related services
• Sales, distribution, or access to counterfeit music, movies, software, or other licensed
  materials without the appropriate authorization from the rights holder
• Shell banks
• Bearer share companies (and employers operating as such), except for those that are
  publicly traded on a recognized exchange

Payroll situations not currently supported

The following list of situations are not currently supported by OnTheClock Payroll:

• Courtesy withholding
• Tax deferrals: Some states allow for taxes to be deferred to later in the year than when due based on certain employer qualifications.
• Tax withholdings or deductions, including child support deductions, from contractor payments
• Child support payments to tribal support agencies (payroll deductions can be supported as post tax deductions)
• Automated remittance of non-child support garnishment types (e.g. tax liens)
• New hire reporting for contractors
• State-specific service member (or spouse) exemption forms
• NQDC plans (non-qualified deferred compensation plans)
• State mandated IRA/retirement plans (note, most of these can be supported as a traditional IRA)
• Tiered 401(k) matching
• Cobra benefits/reporting
• ACA reporting
• W-4 Lock-in Letters
• Net to Gross Wage Calculation
• EITC Notices
• Predecessor/successor/ "Transfer of Experience" handling (941/W-2 reconciliations due to acquisitions)
• Wage garnishment compliance
• Regular rate of pay calculation
• Self tax filing outside of OnTheClock
• Shortfall payroll reports when non enough taxes are withheld
• SUI out of state wage credits
• Tip credit calculations
• Employer Simple IRA match
• Commuter benefits (Section 132)
• Worksite reporting
• Certified reporting
• Optional PFML contribution rates
• Kentucky voluntary paid family leave (introduced by the state on 4/5/24)
• Custom benefit taxability
• Primary workplace for unemployment tax calculation and reporting for workers that perform work in more than one state. As an example, OnTheClock can’t support using a work location in state A to assess unemployment tax and a work location in state B to assess income tax for the same worker.
• PA local combined tax filings to one collector regardless of work location. 
• CA voluntary disability plan

Taxes not supported

There are a small number of state and local taxes we are unable to remit on customer's behalf. Companies will need to pay the taxes themselves:

There are a number of state and local taxes we are currently unable to calculate. Companies will need to manage the tax and updated pay and paystubs for any impacted employees: