Payroll management is crucial in business accounting, and errors can be costly in both time and money.
Common mistakes made in 2025 include:
- Misclassifying Employees – Assuming salaried staff are exempt from overtime without verifying both earnings and job duties.
- Incorrect Overtime Calculations – Overlooking state-specific rules, such as daily thresholds and meal-break premiums, leading to underpayments.
- Timekeeping Errors – Missed punch-ins, manual entries, and unmanaged PTO or sick leave, causing inaccurate payroll and disputes.
- Late or Missed Payroll Tax Filings – Falling behind on deadlines, leading to costly penalties.
- Miscalculated Deductions – Errors in benefits, garnishments, or withholding amounts.
- Wage-Theft Compliance Issues – Failing to meet evolving legal requirements, risking fines or audits.
Solution: Use automation, conduct regular audits, and update policies to maintain accuracy and compliance.
Original content by the Drip Marketing Inc.. This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.
