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.

Need help fixing reconciliation errors and cleaning your books?

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.


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