Payroll mistakes are more common than you think—on average, 1 in every 5 payrolls contains an error, with each mistake costing nearly $300 to fix.*
The Business Importance of Payroll Efficiency
Efficient payroll isn’t just about getting paychecks out on time. It ensures compliance, reduces administrative costs, and builds trust with employees. When employees know they’ll be paid accurately and on schedule, morale improves, turnover decreases, and productivity rises. Payroll is the backbone of employee confidence in your company.
Legal & Financial Ramifications of Payroll Errors
Mistakes in payroll aren’t just inconvenient—they can have serious legal consequences:
- IRS Penalties: Businesses that miss or miscalculate payroll tax deposits face penalties ranging from 2% to as high as 15% depending on the delay.
- Compliance Risks: Employers who willfully fail to remit payroll taxes can be held personally liable for 100% of the unpaid amount.
- W-2 Filing Fines: Filing late or incorrect W-2 forms can cost $30–$100 per form.
In short, payroll errors can trigger audits, drain resources, and expose your business to unnecessary legal and financial risk.
Why DecisionHR Is the Right Partner
At DecisionHR, we know how critical payroll is to both your people and your compliance. That’s why we provide:
- Accurate, on-time payroll processing so your employees are paid correctly every time.
- Built-in compliance safeguards that protect your business from costly mistakes.
- Expert support, freeing you to focus on growth while we handle payroll complexity.
With DecisionHR, you gain more than payroll processing—you gain peace of mind.
Ready to protect your business and your employees’ trust? Contact DecisionHR today to learn how we can simplify your payroll and compliance.
* Data provided courtesy of:
- AxiomHRS Research – Cost of Payroll Errors
- IRS – Failure to Deposit Penalty
- IRS – Trust Fund Recovery Penalty
- IRS – About Form W-2
