7 Common Payroll Mistakes Small Businesses Make (and How to Avoid Them)
The payroll errors that most often cause penalties or unhappy employees, with simple ways to prevent each one.
Published · 5 min read
The mistakes
- Misclassifying employees as contractors
- Missing tax deposit deadlines
- Using outdated withholding information
- Not tracking overtime correctly
- Forgetting state and local requirements
- Poor record keeping
- Mixing personal and business accounts
How to prevent them
Use a payroll calendar, keep employee records current, and review each run before approving it. Automated payroll software can calculate taxes and remind you of deadlines, which removes many of these errors.
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