7 Payroll Mistakes We Fix Most Often

Payroll shouldn’t feel like a trust fall. Yet every pay cycle, even well-run businesses stumble on the same gotchas. At Edgewater CPA Group, we step in to clean up the payroll chaos, so you can pay people accurately, file on time, and get back to growing.

1. Employee vs. Contractor Mix-ups

Misclassifying workers can trigger penalties and back taxes. We review roles, contracts, and control tests to ensure accurate classification and thorough documentation.

2. Late or Incorrect Tax Deposits

Federal, state, and local payroll taxes have different deposit calendars. We align your payroll frequency with deposit schedules and set up automation to prevent costly late fees.

3. Overtime Calculated the Wrong Way

Overtime isn’t just “time-and-a-half after 40.” Bonuses, differentials, and multiple pay rates change the math. We standardize calculations and audit historical runs for accuracy. We also stay informed about any federal changes in tax regulations for overtime to ensure your payroll remains up to date.

4. Missing New-Hire & I-9 Steps

Rushing onboarding leads to incomplete forms and missed deadlines. We implement checklists and e-verify/I-9 workflows to keep you compliant from day one.

5. PTO, Sick Time & Holiday Tracking Errors

When spreadsheets break, policies drift. We configure accrual rules in your system, reconcile balances, and provide clear statements so employees (and auditors) trust the numbers.

6. Garnishments, Child Support & Levies

These require precise timing and priority handling. We establish proper deductions, remittance schedules, and audit trails to prevent penalties and safeguard employee privacy.

7. Local Nuances & System Mismatch

Growing teams outpace legacy payroll setups. We streamline chart-of-account mappings, update local and state codes, and integrate timekeeping to ensure data flows correctly every time.

Clean Payroll, Confident Growth

When payroll is smooth, everything else runs better, including recruiting, retention, and forecasting. Edgewater CPA Group not only fixes payroll errors, but we also help you stay compliant and plan ahead with services like tax resolution, profitability & growth consulting, and a dedicated small business tax accountant to guide your next move here in Carmel, IN. Ready to ditch payroll anxiety? Schedule your consultation at (317) 386-7021.