Payroll errors can create serious problems for employers—especially at the start of a new year. From compliance issues to unhappy employees, even small mistakes can quickly become costly distractions. For Western New York (WNY) employers, understanding where payroll commonly goes wrong is the first step toward avoiding penalties, delays, and unnecessary stress.
Below are the most common payroll errors we see at the beginning of the year—and practical ways WNY employers can prevent them. If you’re evaluating whether your current payroll setup is truly supporting your growth, you may also find it helpful to visit our previous blog on why Rochester businesses rethink payroll providers after year-end, which explores how issues uncovered during W-2s, tax filings, and year-end reporting often prompt employers to reassess their payroll partner.
As Callie Napoleon, Senior HR Payroll Specialist at Bene-Care, shares in Episode 7 of our HCM Insights series:
“One of the common payroll errors we see going into the new year are missed salary and wage base updates.”
Annual changes to pay rates, minimum wage laws, and wage bases can easily be overlooked during a busy year-end, leading to inaccurate payroll and compliance risks.
How to avoid it: Maintain a clear wage change checklist anytime employee pay is adjusted. Monitor New York State and local minimum wage updates carefully, as many changes take effect January 1. The New York State Department of Taxation and Finance provides up-to-date guidance on wage bases and payroll tax requirements that employers can reference each year. Before processing your first payroll of the year, review pre-process payroll reports to confirm pay rates and wage bases are accurate and free of discrepancies.
Another common payroll error going into the new year involves W-4 and employee withholding errors. Life events and tax changes often prompt employees to submit updated withholding forms, and delays or inaccuracies can quickly create payroll issues.
How to avoid it: Process employee withholding updates as soon as they are received. Audit payroll reports regularly to confirm tax status accuracy, and remind employees to review their withholding elections periodically—not just at year-end.
Paid time off (PTO) and accrual reset errors are another frequent issue employers face when transitioning into a new year. Incorrect carryover rules or accrual rates can result in employee confusion and payroll corrections.
“Audit your PTO time-off policies prior to year-end.”
– Callie, Senior HR Payroll Specialist at Bene-Care
How to avoid it: Review PTO policies before the year closes, confirm accrual settings and carryover limits in your payroll system, and encourage employees to verify their balances ahead of the new year.
The first payroll of the year is a critical checkpoint. Rushing through processing without reviewing updated settings can allow multiple small errors to slip through.
How to avoid it: Before running your first payroll, review pre-process reports carefully. Confirm pay rates, withholding, PTO balances, and tax settings are correct to catch issues early—before they impact employees.
While many payroll errors surface in January, ongoing review and communication throughout the year are key to preventing repeat issues.
How to avoid it: Encourage employees to review their pay, tax status, and time-off balances periodically. Regular audits and proactive payroll reviews help reduce surprises at year-end.
As Callie later explains in our HCM Insights episode, taking time to review payroll settings and reports before the first payroll run of the year can help employers catch issues early—before they impact employees.
Payroll errors are common—but they are also preventable. Bene-Care works with WNY employers to simplify payroll processes, support compliance, and reduce risk throughout the year. With the right guidance and systems in place, employers can focus less on payroll problems and more on their people.
If you want support avoiding payroll errors and keeping payroll running smoothly, we’re here to help. Contact our team to learn how Bene-Care supports WNY employers with accurate payroll, compliance guidance, and year-round peace of mind.
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