Payroll Pitfalls: The Audit That Saves December

Payroll is one of those areas that feels like “set it and forget it”—until something goes wrong. And unfortunately, year-end payroll surprises are a common (and costly) problem for growing midsize businesses.

Q3 is the perfect time to check your systems, verify your withholdings, and ensure everything is tracked properly before year-end filings begin.

Here are a few questions to guide your payroll review:

• Have there been changes to employee classifications (W2 vs 1099)?

• Are bonuses or commissions coming up—and are they built into your plan?

• Are tax withholdings accurate based on current wages and locations?

• Have any fringe benefits or reimbursements been updated in your system?

• Are you using the right payroll cadence and schedule for your current needs?
  

For reference, the IRS has an employer tax guide to double-check requirements, but if you’d rather not sift through it all—let us help.

Whether you run payroll in-house or through a third-party provider, your YBO team can assist with a simple payroll check-in. We’ll flag any risks, confirm you're set up for clean year-end reporting, and help you avoid avoidable December stress.

Because a quick audit now means a smooth finish later 😉