Payroll: it’s one of those behind-the-scenes functions that no one really notices until something goes wrong. A misclassified employee here, a missed tax deadline there, and suddenly your business is facing fines, frustrated employees, and an HR headache the size of a W-2 stack. 

According to a study by Ernst & Young, one in five payrolls contains errors, with each mistake costing businesses an average of $291. Multiply that by the number of employees, and the costs quickly snowball into something far less fun than your quarterly pizza party. 

So, let’s break down some of the most common (and expensive) payroll mistakes and more importantly, how Journey Payroll helps you avoid them entirely. 

Mistake #1: Misclassifying Employees and Contractors 

The Cost: Up to 20% of wages, 100% of FICA taxes, and even criminal penalties. 

Misclassifying someone as a contractor instead of an employee isn’t just a simple checkbox error it can trigger IRS fines and lawsuits faster than you can say “1099.” Intentional or not, the penalties can be brutal. 

How Journey Helps: 
Journey’s experienced payroll professionals help you get classifications right the first time. We follow IRS guidelines closely and offer support if your roles evolve. Peace of mind? Delivered. 

Mistake #2: Missing Payroll Tax Deadlines 

The Cost: IRS penalties of up to 15% of the unpaid amount, plus interest. 

Nothing ruins a Friday like finding out you forgot to deposit payroll taxes. Missing tax deadlines doesn’t just upset Uncle Sam it can seriously damage your cash flow and credibility. 

How Journey Helps:
We automate your tax filings and deposits so you never miss a due date. Our system is built to stay ahead of deadlines, and our local experts triple-check the details. The IRS stays happy and so do you. 

Mistake #3: Poor Recordkeeping 

The Cost: Compliance violations and audit risks. 

The FLSA requires employers to keep three years of accurate payroll records. If you’re storing files in a dusty drawer or juggling spreadsheets like a circus act, it’s only a matter of time before something goes wrong. 

How Journey Helps: 
Our secure payroll platform ensures everything is stored neatly and accessible. Audit-ready reports? Check. Organized employee records? Check. A clean digital trail for every payment? Triple check. 

Mistake #4: Overtime Errors 

The Cost: Lawsuits, back pay, and employee trust. 

Incorrectly tracking or paying overtime is a classic payroll pitfall, especially with hourly employees. If you’re not following FLSA rules to the letter, you could be on the hook for thousands in unpaid wages. 

How Journey Helps: 
Journey’s tools automatically calculate overtime pay and flag inconsistencies. No manual math. No guesswork. Just accurate, compliant paychecks every time. 

Mistake #5: Ignoring State-Specific Payroll Laws 

The Cost: Fines, audits, and frustrated employees. 

What’s legal in one state may be a violation in another. From paid leave laws to disability insurance requirements, it’s easy to fall out of compliance if you’re not constantly tracking updates. 

How Journey Helps: 
We stay on top of every update across all 50 states, so you don’t have to. Whether you’re in California or Kansas, Journey ensures your payroll practices are compliant, current, and custom-fit to your location. 

The Journey Advantage: Mistake-Free Payroll Starts Here 

Journey Payroll & HR isn’t just here to process checks. We’re your compliance safety net, your deadline watchdog, and your payroll peace-of-mind provider. 

Here’s why businesses trust us: 

• Automated tax filings and deposits 
• Custom support from real, friendly humans 
• Tools that track overtime, leave, and hours accurately 
• Expert guidance on classification and compliance 
• Seamless, secure recordkeeping 
• Real-time updates on state and federal changes 

We don’t believe in cookie-cutter payroll. We believe in people-first service backed by smart technology that keeps your business compliant and stress-free. 

Ready to Stop Playing Payroll Roulette? 

Payroll mistakes are costly but they’re completely preventable with the right partner. Let Journey Payroll & HR take the stress off your plate so you can focus on what you do best: running and growing your business.