The True Cost of Payroll Mistakes for Small Businesses
A missed filing deadline, incorrect tax withholding, or late W-2 delivery can cost small businesses real money. According to the IRS, millions of dollars in payroll tax penalties are issued every year.
Common Payroll Mistakes
- Misclassifying employees vs. contractors.
- Missing quarterly 941 filings.
- Incorrect tax rates in multi-state setups.
- Late W-2 or 1099 distribution.
Penalties Add Up
- IRS penalties: 2%-15% of payroll deposits.
- State penalties: vary, often $50-$200 per late filing.
- Employee dissatisfaction: delayed pay leads to turnover.
How RBO Payroll Prevents Mistakes
- Automated filings for federal, state, and local.
- CPA-reviewed accuracy.
- Built-in reminders for year-end deadlines.
Predictable Pricing
Unlike providers that charge extra for corrections, RBO payroll is always $60/month + $8 per employee.
FAQs
What if payroll taxes are filed late?
Penalties of 2%-15% may apply.
Do you handle amended filings?
Yes, we can correct prior payroll errors.
Can you manage contractors as well?
Yes, we issue 1099s alongside W-2s.
