Payroll errors can result in costly mistakes, penalties, and wasted resources. This guide outlines the top 10 payroll pitfalls and how to avoid them. Key issues include voiding and reversing payments, properly handling deductions and earnings taxation, managing taxable fringe benefits, and addressing state tax issues. Companies must also prepare for year-end reporting, navigate compliance rules, and manage intercompany transfers. Implementing efficient electronic workflows and general ledger reporting helps streamline payroll processes. By developing retroactive pay policies and leveraging comprehensive payroll solutions, organizations can avoid common payroll errors and ensure smooth operations.

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