Small businesses face heavy costs and compliance risks from payroll errors
Updated
Updated · ZDNet · Apr 30
Small businesses face heavy costs and compliance risks from payroll errors
12 articles · Updated · ZDNet · Apr 30
A KPMG report says mistakes can consume up to 5% of payroll, or nearly $40,000 yearly for a 15-person company paying average salaries of $50,000.
Examples from California, Washington and Texas show tax notices, worker-classification risks and multi-state filing demands can overwhelm owners without dedicated HR or payroll staff.
The report says changing state rules on workers' compensation, retirement mandates, breaks, final pay and transparency laws make automation, recordkeeping and expert support increasingly important.
As remote work creates a multi-state tax maze, what is the one compliance error that could cost your business everything?
With government AI now hunting for payroll errors, how can small businesses avoid becoming its next target and facing massive fines?
The IRS can hold owners personally liable for tax mistakes. What is the key to protecting your personal assets from this growing risk?