Why Your Payroll Needs Double-Checks Before Filing

When you’re running a business, payday shouldn’t feel like a gamble. But if you’ve ever held your breath after submitting payroll—hoping nothing was missed—you’re not alone.

From employee misclassifications to outdated tax rates, one small payroll mistake can lead to big consequences. Whether it’s an overpayment, a missed deduction, or a tax filing error, the fallout can be expensive and stressful.

The solution? Double-checking your payroll before you file. It’s a simple habit that protects your business from compliance issues, employee frustration, and tax penalties.

Here’s why this extra step matters—and what you should be reviewing every pay period.

The Real Cost of Payroll Mistakes

A Small Error Can Trigger a Big Mess

Let’s say you forgot to update a team member’s new pay rate before processing payroll. It’s an easy oversight—but now they’ve been underpaid. You have to:

• Issue a correction
  
  
  
• Manually adjust the next paycheck
  
  
  
• Recalculate taxes
  
  
  
• Possibly amend a tax filing
  
  
  
• Deal with an understandably frustrated employee
  
  
  

And that’s just one error.

When mistakes slip into your payroll tax filings, the consequences grow quickly. The IRS can assess penalties starting at 2% and increasing up to 15% for late or incorrect deposits—even if you catch the mistake later.

Plus, if you’re filing in multiple states or managing wage garnishments, the complexity compounds fast.

The Risk to Your Business Reputation

Payroll issues don’t just hurt your bottom line—they hurt employee trust.

If employees are regularly spotting errors in their paychecks, they may start to wonder what else is being overlooked. It creates tension and lowers morale, especially if those mistakes impact rent, bills, or personal budgets.

Why Double-Checking Is Worth It

Human Error Is Normal—But Preventable

Even if you're using payroll software or have an internal person dedicated to it, manual entry and oversight are still part of the process.

That means:

• New hires may be missing from the system
  
  
  
• Terminated employees could accidentally be paid
  
  
  
• PTO balances may be wrong
  
  
  
• Pay rate updates might not sync in time
  
  
  
• Garnishments or benefits may not apply correctly
  
  
  

Software helps streamline, but it doesn’t replace critical thinking. That’s where a second set of eyes—or a structured checklist—can make all the difference.

It Saves Time and Money Down the Line

Double-checking before you file:

• Reduces the need to process off-cycle corrections
  
  
  
• Avoids the cost and complexity of amending tax returns
  
  
  
• Prevents IRS notices, penalties, or late fees
  
  
  
• Gives you confidence that payday won’t be followed by panic
  
  
  

Think of it like proofreading a contract before signing. It might take five minutes now—but save you hours (and dollars) later.

What Should You Double-Check Before You Submit Payroll?

Here’s a simple checklist to build into your process:

 1. Employee Changes

• Have any employees been hired, terminated, or changed roles?
  
  
  
• Are all pay rates accurate and updated in the system?
  
  
  

 2. Hours and Overtime

• Are all hours worked approved and accounted for?
  
  
  
• Is overtime calculated correctly?
  
  
  
• Are PTO or sick leave hours applied?
  
  
  

 3. Deductions and Benefits

• Are health insurance, retirement, and garnishments properly deducted?
  
  
  
• Are benefit enrollments or changes reflected this period?
  
  
  

 4. Tax Settings

• Are all employees coded with the correct federal, state, and local tax info?
  
  
  
• Have any employees moved to a different tax jurisdiction?
  
  
  

 5. Special Cases

• Bonuses, commissions, or reimbursements—are they recorded and taxed properly?
  
  
  
• Are you handling shift differentials or tip credits where needed?
  
  
  

 6. Final Preview

• Do net pay amounts look correct across the board?
  
  
  
• Are direct deposit accounts accurate?
  
  
  
• Are total debits and tax liabilities in line with previous periods?
  
  
  

Whether you’re running payroll in-house or working with a provider like Cadence HCM, this final check adds a layer of assurance you—and your team—will be thankful for.

Final Thought: What Confidence in Payroll Looks Like

Payroll shouldn’t be a guessing game. And it shouldn’t keep you up at night.

By building in one extra layer of review, you can:

• Keep your employees happy and paid accurately
  
  
• Stay in good standing with tax agencies
  
  
• Avoid rework, penalties, or messy corrections
  
  
• Gain peace of mind every pay period
  
  

If your current system doesn’t make that easy—or you’re tired of doing it all yourself—it may be time for a payroll partner who double-checks for you.