Common payroll mistakes
Payroll problems surface at the worst time.
Payroll looks simple until it isn't — and the mistakes that matter most rarely show up until months later.
Payroll and books that never reconcile
Payroll runs through one system, bookkeeping through another, and nobody checks that the two agree — so discrepancies surface for the first time at tax season, when they're hardest to unwind.
Workers classified the wrong way
Treating a worker as a 1099 contractor when the IRS's rules say employee is one of the most common — and costly — payroll mistakes, triggering back taxes, penalties, and interest once caught.
Tax deposit deadlines missed
Federal payroll tax deposits are due semi-weekly or monthly depending on your deposit schedule — missing one carries a penalty that starts at 2% and climbs the longer it's outstanding, even if the return itself was filed on time.
What's included
Payroll, run by the same people who do your books.
Payroll Processing
Hours, pay, and deductions run on schedule, every pay period.
Payroll Tax Filing
Federal and Arizona payroll tax filings handled and reconciled against what was actually withheld.
W-2 Preparation
W-2s prepared and filed at year-end, tied to the same numbers running through your books all year.
1099 Contractor Payments
Contractor payments tracked and 1099s issued correctly — including the E-Verify consideration for larger contract engagements.
Payroll Accounting
Payroll entries booked directly into your monthly close, instead of reconciled separately after the fact.
Multi-State Payroll
Remote employees working from other states are increasingly the norm — we handle the added withholding and reporting requirements that come with them.
Run a med spa? See how we handle med spa payroll and provider comp
Key facts · Payroll compliance
The compliance calendar most owners don’t see coming.
$184,500
The 2026 Social Security wage base — the maximum wage subject to the tax, up from $176,100 in 2025. Withhold past it and you owe your employee a refund.
20 days
Federal law sets this as the outer limit for reporting a new hire to your state's new-hire directory — the deadline in any state that hasn't set a shorter one of its own.
$35,568
The federal salary threshold for the white-collar overtime exemption, restored in 2026 after a higher rate was struck down in court. Below it, hours over 40/week require overtime pay regardless of title.
0.6%
The effective FUTA rate most employers actually pay — a 6.0% federal rate on the first $7,000 of wages, reduced by the standard state unemployment tax credit.
Jan. 31
The deadline to get W-2s and 1099-NECs to employees and contractors, and to the IRS or SSA — one date, two audiences, no grace period.
General information current as of 2026, subject to change — a discovery call is the right next step for how these apply to your specific payroll.
Last reviewed July 2026 · reflects federal rates and requirements as of this date
Common questions · FAQ
Before you call.
Begin
Get payroll off your plate, for good.
Step 1
Discovery call
A complimentary 20-minute call to see whether we're a good fit — no pitch, no obligation.
Step 2
The Partner Review
We review your current payroll process and compliance calendar — a partner, personally — and present a written transition plan.
Step 3
Implement & advise
We run payroll on schedule and keep watch on every deadline, so nothing slips through.
Complimentary · Confidential
Begin with a conversation.
Twenty minutes with a partner — no cost, and no obligation to go further. Pick a time below.