{"id":985,"date":"2026-07-15T15:43:33","date_gmt":"2026-07-15T15:43:33","guid":{"rendered":"https:\/\/theaccountingexpress.com\/blog\/?p=985"},"modified":"2026-07-15T15:58:21","modified_gmt":"2026-07-15T15:58:21","slug":"payroll-mistakes-that-trigger-irs-penalties","status":"publish","type":"post","link":"https:\/\/theaccountingexpress.com\/blog\/payroll-mistakes-that-trigger-irs-penalties\/","title":{"rendered":"5 Payroll Mistakes That Can Trigger IRS Penalties (and How to Avoid Them)"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"985\" class=\"elementor elementor-985\">\n\t\t\t\t<div class=\"elementor-element elementor-element-1aada359 blog__content e-flex e-con-boxed wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no wpr-equal-height-no e-con e-parent\" data-id=\"1aada359\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-8277aa1 e-con-full e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no wpr-equal-height-no e-con e-child\" data-id=\"8277aa1\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-25a8f6fa elementor-widget elementor-widget-image\" data-id=\"25a8f6fa\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1140\" height=\"593\" src=\"https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/5-Payroll-Mistakes-That-Can-Trigger-IRS-Penalties-and-How-to-Avoid-Them.jpg\" class=\"attachment-full size-full wp-image-986\" alt=\"5 Payroll Mistakes That Can Trigger IRS Penalties (and How to Avoid Them)\" srcset=\"https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/5-Payroll-Mistakes-That-Can-Trigger-IRS-Penalties-and-How-to-Avoid-Them.jpg 1140w, https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/5-Payroll-Mistakes-That-Can-Trigger-IRS-Penalties-and-How-to-Avoid-Them-300x156.jpg 300w, https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/5-Payroll-Mistakes-That-Can-Trigger-IRS-Penalties-and-How-to-Avoid-Them-1024x533.jpg 1024w, https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/5-Payroll-Mistakes-That-Can-Trigger-IRS-Penalties-and-How-to-Avoid-Them-768x399.jpg 768w\" sizes=\"(max-width: 1140px) 100vw, 1140px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-655ef033 elementor-widget__width-initial elementor-widget elementor-widget-html\" data-id=\"655ef033\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t\t<!DOCTYPE html>\r\n<html lang=\"en\">\r\n<head>\r\n<meta charset=\"UTF-8\">\r\n<meta name=\"viewport\" content=\"width=device-width, initial-scale=1.0\">\r\n<title>Author Info<\/title>\r\n\r\n<link rel=\"preconnect\" href=\"https:\/\/fonts.googleapis.com\">\r\n<link href=\"https:\/\/fonts.googleapis.com\/css2?family=Poppins:wght@300;400;500;600&display=swap\" rel=\"stylesheet\">\r\n\r\n<link rel=\"stylesheet\" href=\"https:\/\/cdnjs.cloudflare.com\/ajax\/libs\/font-awesome\/6.5.2\/css\/all.min.css\">\r\n\r\n<style>\r\n\r\n*{\r\n    margin:0;\r\n    padding:0;\r\n    box-sizing:border-box;\r\n}\r\n\r\nbody{\r\n    font-family:'Poppins',sans-serif;\r\n    background:#f8f4f1;\r\n    padding:40px;\r\n}\r\n\r\n.blog-meta-wrapper{\r\n    max-width:700px;\r\n}\r\n\r\n.blog-meta{\r\n    display:flex;\r\n    align-items:center;\r\n    gap:30px;\r\n    flex-wrap:wrap;\r\n    margin-bottom:35px;\r\n}\r\n\r\n.meta-item{\r\n    display:flex;\r\n    align-items:center;\r\n    gap:10px;\r\n    color:#5a514d;\r\n    font-size:16px;\r\n    font-weight:500;\r\n}\r\n\r\n.meta-item i{\r\n    font-size:16px;\r\n}\r\n\r\n.author-box{\r\n    display:flex;\r\n    align-items:center;\r\n    gap:16px;\r\n}\r\n\r\n.author-img{\r\n    width:62px;\r\n    height:62px;\r\n    border-radius:50%;\r\n    object-fit:cover;\r\n}\r\n\r\n.author-content h4{\r\n    font-size:18px;\r\n    font-weight:600;\r\n    color:#000;\r\n    margin-bottom:3px;\r\n}\r\n\r\n.author-content p{\r\n    font-size:16px;\r\n    color:#6d6d6d;\r\n    font-weight:400;\r\n}\r\n\r\n\/* Responsive *\/\r\n\r\n@media(max-width:576px){\r\n\r\n    body{\r\n        padding:20px;\r\n    }\r\n\r\n    .blog-meta{\r\n        gap:15px;\r\n    }\r\n\r\n    .meta-item{\r\n        font-size:14px;\r\n    }\r\n\r\n    .author-content h4{\r\n        font-size:16px;\r\n    }\r\n\r\n    .author-content p{\r\n        font-size:14px;\r\n    }\r\n\r\n}\r\n\r\n<\/style>\r\n<\/head>\r\n<body>\r\n\r\n<div class=\"blog-meta-wrapper\">\r\n\r\n    <!-- Meta Info -->\r\n    <div class=\"blog-meta\">\r\n\r\n        <div class=\"meta-item\">\r\n            <i class=\"fa-regular fa-calendar\"><\/i>\r\n            <span id=\"published-date\"><\/span>\r\n        <\/div>\r\n\r\n        <div class=\"meta-item\">\r\n            <i class=\"fa-regular fa-clock\"><\/i>\r\n            <span>17 Min<\/span>\r\n        <\/div>\r\n\r\n        <div class=\"meta-item\">\r\n            <i class=\"fa-regular fa-eye\"><\/i>\r\n            <span>148 Views<\/span>\r\n        <\/div>\r\n\r\n    <\/div>\r\n\r\n    <!-- Author -->\r\n    <div class=\"author-box\">\r\n\r\n        <img decoding=\"async\" \r\n            src=\"https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2025\/10\/ChatGPT-Image-May-11-2026-07_31_00-PM.png\" \r\n            alt=\"Author\"\r\n            class=\"author-img\"\r\n        >\r\n\r\n        <div class=\"author-content\">\r\n            <h4>John Flores<\/h4>\r\n            <p>Content Marketing Enthusiast<\/p>\r\n        <\/div>\r\n\r\n    <\/div>\r\n\r\n<\/div>\r\n\r\n<script>\r\n\r\n\/\/ Dynamic Published Date\r\nconst dateElement = document.getElementById('published-date');\r\n\r\nconst currentDate = new Date();\r\n\r\nconst options = {\r\n    year: 'numeric',\r\n    month: 'long',\r\n    day: 'numeric'\r\n};\r\n\r\ndateElement.innerHTML = `Published: ${currentDate.toLocaleDateString('en-US', options)}`;\r\n\r\n<\/script>\r\n\r\n<\/body>\r\n<\/html>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4b0313ce elementor-widget elementor-widget-text-editor\" data-id=\"4b0313ce\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h1><span style=\"font-weight: 400;\">5 Payroll Mistakes That Can Trigger IRS Penalties (and How to Avoid Them)<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">In the world of business, there are dozens of moving parts, and payroll can have a significant impact. Penalties for missed deposits, misclassified employees, and incorrect filings can accumulate quickly and sometimes reach thousands of dollars due to a single mistake by the IRS.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That is why many companies that are growing are looking for <\/span><em><a href=\"https:\/\/theaccountingexpress.com\/payroll\"><b>payroll management services<\/b><\/a><\/em><span style=\"font-weight: 400;\"> that will ensure that their payroll is accurate and on time. Employers have specific deadlines to report and withhold wages, tips, and withheld taxes, and the IRS will be on their radar if those deadlines are not met, according to the IRS itself, in its <\/span><em><strong><a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/payroll-professionals-tax-center-information-for-payroll-professionals-and-their-clients\">Payroll Professionals Tax Center<\/a><\/strong><\/em><span style=\"font-weight: 400;\">.<\/span><\/p>\n<section class=\"cta-section\">\n<div class=\"cta-container\">\n<h2>Payroll Mistakes Are Costing You Thousands \u2014 Are You Making These 5 Errors?<\/h2>\n<p>Late deposits, misclassified workers, incorrect filings \u2014 the IRS doesn&#8217;t forgive. Learn how to avoid these costly mistakes and keep your business safe.<\/p>\n<p><a class=\"cta-btn pop_btn\" href=\"javascript:;\">Get Free Payroll Error Check<\/a><\/p>\n<\/div>\n<\/section>\n<h2><span style=\"font-weight: 400;\">What Is Payroll Management and How Does It Work?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\"><em><strong><a href=\"https:\/\/theaccountingexpress.com\/blog\/payroll-management-how-it-works\/\">What is Payroll Management and How Does it Work<\/a><\/strong><\/em>? Payroll management is essentially about calculating payroll, withholding federal and state taxes, paying them to the IRS on a specific schedule, and filing quarterly returns and year-end forms, such as W-2s.<\/span><\/p>\n<p>Payroll can be handled by a business manually, using software, or by outsourcing to a payroll service provider. Manual methods introduce additional opportunities for human error, whereas professional payroll management services incorporate compliance monitoring directly into the procedure, lowering the chances of failing to meet deadlines or making errors.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-989\" src=\"https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/image2-5.jpg\" alt=\"Infographic on payroll management and 5 costly IRS mistakes late tax deposits (2\u201315% penalty), employee misclassification, late Form 941 (up to 25% penalty), incorrect wage calculations, and poor recordkeeping. Accurate payroll + on-time filing = better IRS compliance.\" width=\"1774\" height=\"887\" srcset=\"https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/image2-5.jpg 1774w, https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/image2-5-300x150.jpg 300w, https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/image2-5-1024x512.jpg 1024w, https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/image2-5-768x384.jpg 768w, https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/image2-5-1536x768.jpg 1536w\" sizes=\"(max-width: 1774px) 100vw, 1774px\" \/><\/p>\n<h2><span style=\"font-weight: 400;\">Common Payroll Mistakes and How to Avoid Them<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Understanding where common payroll mistakes can occur is the first step in <em><strong><a href=\"https:\/\/theaccountingexpress.com\/blog\/common-payroll-mistakes-and-how-to-avoid-them\/\">Common Payroll Mistakes and How to Avoid Them<\/a><\/strong><\/em>. The IRS applies penalties that increase with the delay in a deposit, and a late deposit of just a few days can equal real money for a business. Here are the five most common penalties that cause penalties:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Missing deposit deadlines<\/b><span style=\"font-weight: 400;\">: late deposits incur a penalty starting at 2%, rising to 15% the longer they go unpaid.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Misclassifying employees as contractors:<\/b><span style=\"font-weight: 400;\"> triggers back taxes, interest, and penalties once corrected.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Filing Form 941 late:<\/b><span style=\"font-weight: 400;\"> failure-to-file penalties accrue at 5% per month, up to 25% of the unpaid tax.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Inaccurate wage calculations: <\/b><span style=\"font-weight: 400;\">manual data-entry errors can lead to underpayment penalties.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Poor recordkeeping: <\/b><span style=\"font-weight: 400;\">missing documentation makes it harder to dispute a penalty later.<\/span><\/li>\n<\/ul>\n<section class=\"cta-section\">\n<div class=\"cta-container\">\n<h2>Don&#8217;t Let Payroll Mistakes Trigger an IRS Nightmare \u2014 Fix Them Now<\/h2>\n<p>One wrong calculation can lead to penalties and audits. Discover the 5 most common payroll errors and exactly how to prevent them in your business.<\/p>\n<p><a class=\"cta-btn pop_btn\" href=\"javascript:;\">Claim Free Payroll Consultation<\/a><\/p>\n<\/div>\n<\/section>\n<h3><span style=\"font-weight: 400;\">How Much Do Payroll Services Cost for Small Businesses?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Owners frequently have a hard time deciding whether to outsource payroll or handle it in-house because of the <em><strong><a href=\"https:\/\/theaccountingexpress.com\/blog\/payroll-services-cost-small-businesses\/\">cost of payroll services for small businesses<\/a><\/strong><\/em>. The fees are usually based on the range of services provided, whether it&#8217;s just filing taxes or comprehensive HR services, the frequency of payments, and the company size.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The fee seems like another expense, but it is typically not as high as the cost of an IRS penalty, so many small teams consider it a good investment rather than a luxury.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Service Level<\/b><\/td>\n<td><b>Typical Monthly Cost<\/b><\/td>\n<td><b>What&#8217;s Included<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Basic<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$40\u2013$80 + per employee fee<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Tax deposits, direct deposit<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Standard<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$80\u2013$150 + per employee fee<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Filings, W-2s, compliance alerts<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Full-Service<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$150+<\/span><\/td>\n<td><span style=\"font-weight: 400;\">HR support, benefits admin<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span style=\"font-weight: 400;\">7 Benefits of Outsourcing Payroll Services<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Outsourcing your payroll services offers more than just a way to avoid penalties; it introduces structure and accountability into an area that&#8217;s simple to neglect during hectic weeks:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automated, on-time tax deposits<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Minimize misclassification errors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Compliance experts are available to assist.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Time saved on administrative tasks<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Produce record-keeping and audits<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Easier year-end tax form processing<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">As team size increases, scalability to support growth.<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-990\" src=\"https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/image1-5.jpg\" alt=\"Infographic comparing manual vs professional payroll. Manual: 68% compliance score with high IRS risks. Professional: 95% compliance with low risks. Benefits: save time, support growth, reduce IRS penalties. Focus on your business, not deadlines.\" width=\"1774\" height=\"887\" srcset=\"https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/image1-5.jpg 1774w, https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/image1-5-300x150.jpg 300w, https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/image1-5-1024x512.jpg 1024w, https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/image1-5-768x384.jpg 768w, https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/image1-5-1536x768.jpg 1536w\" sizes=\"(max-width: 1774px) 100vw, 1774px\" \/><\/p>\n<h3><span style=\"font-weight: 400;\">How To Run Payroll For a Small Business: A Beginner&#8217;s Guide<\/span><\/h3>\n<p><span style=\"font-weight: 400;\"><em><strong><a href=\"https:\/\/theaccountingexpress.com\/blog\/how-to-run-payroll-for-a-small-business-a-beginners-guide\/\">How To Run Payroll For a Small Business: A Beginner&#8217;s Guide<\/a><\/strong><\/em> will guide you step-by-step from the basics to more complex processes. New employers must have an Employer Identification Number, a clear payroll plan, and tracking of hours and withholdings from the start.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After that, it&#8217;s a cycle of calculations, deductions, deposits, and quarterly and annual forms. It&#8217;s a much more relaxed cycle for businesses that work with companies such as <em><strong><a href=\"https:\/\/theaccountingexpress.com\/\">The Accounting Express<\/a><\/strong><\/em> because they know what to expect and can manage all deadlines and documentation.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to one such report on payroll penalty trends, almost 40% of all small businesses end up paying a penalty due to this payroll error in a particular year, revealing the level of payroll errors and how avoidable they are. (<\/span><em><strong><a href=\"https:\/\/gloucestercitynews.net\/2026\/05\/how-serious-are-payroll-tax-penalties\/\">Gloucester City News<\/a><\/strong><\/em><span style=\"font-weight: 400;\">)<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><span style=\"font-weight: 400;\">Conclusion<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While it might not be the most thrilling aspect of running a business, payroll compliance is one of the most expensive things to get wrong. Little mistakes can add up to huge IRS penalties over the years, from failing to deposit a payroll check to incorrectly categorizing employees.&nbsp;<\/span><\/p>\n<p>Working with trusted payroll management services allows business owners to avoid missing payroll deadlines, minimize risks, and invest more time in growing their company rather than dealing with paperwork.<\/p>\n<section class=\"cta-section\">\n<div class=\"cta-container\">\n<h2>The IRS Is Watching \u2014 Are Your Payroll Records Audit-Ready?<\/h2>\n<p>Employee classifications, tax deposits, and filing deadlines \u2014 we&#8217;ll help you fix the 5 mistakes that trigger IRS penalties and give you peace of mind.<\/p>\n<p><a class=\"cta-btn pop_btn\" href=\"javascript:;\">Talk to a Payroll Expert Today<\/a><\/p>\n<\/div>\n<\/section>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7f4d88d6 elementor-widget elementor-widget-heading\" data-id=\"7f4d88d6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"FAQS\"><\/span>FAQ'S<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3564fc17 elementor-widget__width-inherit wpr-advanced-accordion-icon-side-box elementor-widget elementor-widget-wpr-advanced-accordion\" data-id=\"3564fc17\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;active_item&quot;:1}\" data-widget_type=\"wpr-advanced-accordion.default\">\n\t\t\t\t\t\n            <div class=\"wpr-advanced-accordion\" data-accordion-type=\"accordion\" data-active-index=\"1\" data-accordion-trigger=\"click\" data-interaction-speed=\"0.4\">\n\n\t\t\t\n                \n\t\t\t\t\t<div class=\"wpr-accordion-item-wrap\">\n\t\t\t\t\t\t<button class=\"wpr-acc-button\">\n\t\t\t\t\t\t\t<span class=\"wpr-acc-item-title\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"wpr-acc-icon-box\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"wpr-title-icon\">\n\t\t\t\t\t<i aria-hidden=\"true\" class=\"far fa-edit\"><\/i>\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t<span class=\"wpr-acc-title-text\">What triggers an IRS payroll penalty?<\/span>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"wpr-toggle-icon wpr-ti-close\"><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t\t<span class=\"wpr-toggle-icon wpr-ti-open\"><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t<\/button>\n\n\t\t\t\t\t\t<div class=\"wpr-acc-panel\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"wpr-acc-panel-content\"><p><span style=\"font-weight: 400;\">The most common reasons are late tax deposits, failure to file on time, and incorrect wage reporting. A delay of just a couple of days can result in a penalty, as the IRS assesses penalties based on the delay in making a deposit.<\/span><\/p><\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n                    <\/div>\n\n                \n\t\t\t\t\t<div class=\"wpr-accordion-item-wrap\">\n\t\t\t\t\t\t<button class=\"wpr-acc-button\">\n\t\t\t\t\t\t\t<span class=\"wpr-acc-item-title\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"wpr-acc-icon-box\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"wpr-title-icon\">\n\t\t\t\t\t<i aria-hidden=\"true\" class=\"far fa-edit\"><\/i>\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t<span class=\"wpr-acc-title-text\">Can a first-time payroll penalty be waived?<\/span>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"wpr-toggle-icon wpr-ti-close\"><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t\t<span class=\"wpr-toggle-icon wpr-ti-open\"><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t<\/button>\n\n\t\t\t\t\t\t<div class=\"wpr-acc-panel\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"wpr-acc-panel-content\"><p><span style=\"font-weight: 400;\">Yes. Those companies that have a clean compliance record might get relief if they are quick to correct the mistake and show reasonable cause to the IRS.<\/span><\/p><\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n                    <\/div>\n\n                \n\t\t\t\t\t<div class=\"wpr-accordion-item-wrap\">\n\t\t\t\t\t\t<button class=\"wpr-acc-button\">\n\t\t\t\t\t\t\t<span class=\"wpr-acc-item-title\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"wpr-acc-icon-box\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"wpr-title-icon\">\n\t\t\t\t\t<i aria-hidden=\"true\" class=\"far fa-edit\"><\/i>\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t<span class=\"wpr-acc-title-text\">Is outsourcing payroll worth it for a small business?<\/span>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"wpr-toggle-icon wpr-ti-close\"><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t\t<span class=\"wpr-toggle-icon wpr-ti-open\"><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t<\/button>\n\n\t\t\t\t\t\t<div class=\"wpr-acc-panel\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"wpr-acc-panel-content\"><p><span style=\"font-weight: 400;\">Yes, for many small businesses. The monthly payment is typically less expensive than a single late payment, and the service eases the administrative burden for business owners.<\/span><\/p><\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n                    <\/div>\n\n                \n\t\t\t\t\t<div class=\"wpr-accordion-item-wrap\">\n\t\t\t\t\t\t<button class=\"wpr-acc-button\">\n\t\t\t\t\t\t\t<span class=\"wpr-acc-item-title\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"wpr-acc-icon-box\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"wpr-title-icon\">\n\t\t\t\t\t<i aria-hidden=\"true\" class=\"far fa-edit\"><\/i>\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t<span class=\"wpr-acc-title-text\">How often are payroll taxes due?<\/span>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"wpr-toggle-icon wpr-ti-close\"><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t\t<span class=\"wpr-toggle-icon wpr-ti-open\"><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t<\/button>\n\n\t\t\t\t\t\t<div class=\"wpr-acc-panel\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"wpr-acc-panel-content\"><p><span style=\"font-weight: 400;\">The frequency of deposits depends on the size of the business, but most businesses deposit monthly or semi-weekly, and returns, such as Form 941, are filed quarterly or four times a year.<\/span><\/p><\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n                    <\/div>\n\n                            <\/div>\n        \t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-cf5055d e-con-full e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no wpr-equal-height-no e-con e-child\" data-id=\"cf5055d\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-59fc91b4 e-con-full e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no wpr-equal-height-no e-con e-child\" data-id=\"59fc91b4\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-33a11f9f e-grid e-con-full wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no wpr-equal-height-no e-con e-child\" data-id=\"33a11f9f\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e1749d3 elementor-widget elementor-widget-image\" data-id=\"e1749d3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"800\" src=\"https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2025\/10\/ChatGPT-Image-May-11-2026-07_31_00-PM-1024x1024.png\" class=\"attachment-large size-large wp-image-414\" alt=\"\" srcset=\"https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2025\/10\/ChatGPT-Image-May-11-2026-07_31_00-PM-1024x1024.png 1024w, https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2025\/10\/ChatGPT-Image-May-11-2026-07_31_00-PM-300x300.png 300w, https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2025\/10\/ChatGPT-Image-May-11-2026-07_31_00-PM-150x150.png 150w, https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2025\/10\/ChatGPT-Image-May-11-2026-07_31_00-PM-768x768.png 768w, https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2025\/10\/elementor\/thumbs\/ChatGPT-Image-May-11-2026-07_31_00-PM-rnazrmdd5soloaaua813sge1whanib4hpn44sbozjc.png 100w, https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2025\/10\/ChatGPT-Image-May-11-2026-07_31_00-PM.png 1254w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-35fcd3cf e-grid e-con-full wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no wpr-equal-height-no e-con e-child\" data-id=\"35fcd3cf\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-66ade81f elementor-widget elementor-widget-heading\" data-id=\"66ade81f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"About_The_Author\"><\/span>About The Author<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4cacc5e elementor-widget elementor-widget-heading\" data-id=\"4cacc5e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<p class=\"elementor-heading-title elementor-size-default\">A finance and accounting professional with a strong passion for helping businesses grow, John Smith specializes in delivering clear financial insights and strategic accounting solutions. With extensive experience in bookkeeping, tax planning, financial reporting, and business advisory, he is dedicated to simplifying complex financial processes and helping companies make smarter financial decisions with confidence.<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-d7bb80a e-con-full side__post e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-equal-height-no e-con e-child\" data-id=\"d7bb80a\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-ef01d3b e-con-full side__post e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-equal-height-no e-con e-child\" data-id=\"ef01d3b\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div data-wpr-sticky-section=\"yes\" data-wpr-position-type=\"sticky\" data-wpr-position-offset=\"0\" data-wpr-position-location=\"top\" data-wpr-sticky-devices=\"desktop_sticky\" data-wpr-custom-breakpoints=\"\" data-wpr-active-breakpoints=\"mobile_sticky tablet_sticky desktop_sticky\" data-wpr-z-index=\"10\" data-wpr-sticky-hide=\"\" data-wpr-replace-header=\"\" data-wpr-animation-duration=\"\" data-wpr-sticky-type=\"sticky\" class=\"elementor-element elementor-element-142177cc e-con-full wpr-sticky-section-yes e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-equal-height-no e-con e-child\" data-id=\"142177cc\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;position_offset&quot;:0,&quot;position_offset_tablet&quot;:0,&quot;position_offset_mobile&quot;:0}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-79a21ec9 elementor-widget elementor-widget-heading\" data-id=\"79a21ec9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"Lets_Discuss\"><\/span>Let's Discuss<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-514cfaa5 elementor-widget elementor-widget-html\" data-id=\"514cfaa5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t\t<style>\r\n\r\n.custom-contact-form-wrapper{\r\n    width:300px;\r\n    background-color:#dcedff;\r\n    padding:15px;\r\n    border-radius:10px;\r\n}\r\n\r\n.custom-contact-form{\r\n    display:flex;\r\n    flex-direction:column;\r\n    gap:14px;\r\n}\r\n\r\n.custom-contact-input,\r\n.custom-contact-textarea{\r\n    width:100%;\r\n    padding:16px;\r\n    border:1px solid #00000061;\r\n    border-radius:4px;\r\n    font-size:16px;\r\n    outline:none;\r\n    background-color:transparent;\r\n    color:#222;\r\n    max-width:100%;\r\n}\r\n\r\n.custom-contact-textarea{\r\n    min-height:120px;\r\n    resize:none;\r\n}\r\n\r\n.custom-contact-submit-btn{\r\n    width:105px;\r\n    padding:14px;\r\n    border:none;\r\n    border-radius:4px;\r\n    background:#e61b3c;\r\n    color:#fff;\r\n    font-size:22px;\r\n    font-weight:bold;\r\n    cursor:pointer;\r\n    transition:0.3s;\r\n}\r\n\r\n.custom-contact-submit-btn:hover{\r\n    background:#c91431;\r\n}\r\n\r\n@media(max-width:500px){\r\n\r\n    .custom-contact-form-wrapper{\r\n        width:100%;\r\n    }\r\n\r\n}\r\n\r\n<\/style>\r\n\r\n<div class=\"custom-contact-form-wrapper\">\r\n\r\n    <form class=\"custom-contact-form\">\r\n\r\n        <input \r\n            type=\"text\" \r\n            class=\"custom-contact-input\"\r\n            placeholder=\"Enter Name\" \r\n            required\r\n        >\r\n\r\n        <input \r\n            type=\"email\" \r\n            class=\"custom-contact-input\"\r\n            placeholder=\"Enter Email\" \r\n            required\r\n        >\r\n\r\n        <input \r\n            type=\"tel\" \r\n            class=\"custom-contact-input\"\r\n            placeholder=\"Enter Phone\"\r\n        >\r\n\r\n        <textarea \r\n            class=\"custom-contact-textarea\"\r\n            placeholder=\"Tell us about your project\"\r\n        ><\/textarea>\r\n\r\n        <button \r\n            type=\"submit\"\r\n            class=\"custom-contact-submit-btn\"\r\n        >\r\n            Submit\r\n        <\/button>\r\n\r\n    <\/form>\r\n\r\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-40635d94 e-con-full e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-equal-height-no e-con e-child\" data-id=\"40635d94\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-202bf076 e-con-full recent-blogs e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-equal-height-no e-con e-child\" data-id=\"202bf076\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-19aed787 elementor-widget elementor-widget-heading\" data-id=\"19aed787\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"Recent_Blog\"><\/span>Recent Blog<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3f0999f5 wpr-grid-columns-1 all-post wpr-item-styles-wrapper elementor-widget__width-initial wpr-grid-columns--tablet2 wpr-grid-columns--mobile1 elementor-widget elementor-widget-wpr-grid\" data-id=\"3f0999f5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"wpr-grid.default\">\n\t\t\t\t\t<ul class=\"wpr-grid-filters elementor-clearfix wpr-grid-filters-sep-right\"><li class=\" wpr-pointer-none wpr-pointer-line-fx wpr-pointer-fx-none\"><span  data-filter=\"*\" 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data-advanced-filters=\"no\"><article class=\"wpr-grid-item elementor-clearfix post-985 post type-post status-publish format-standard has-post-thumbnail hentry category-accounting-and-finance\"><div class=\"wpr-grid-item-inner\"><div class=\"wpr-grid-media-wrap wpr-effect-size-medium \" data-overlay-link=\"yes\"><div class=\"wpr-grid-image-wrap\" data-src=\"https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/5-Payroll-Mistakes-That-Can-Trigger-IRS-Penalties-and-How-to-Avoid-Them.jpg\" data-img-on-hover=\"\"  data-src-secondary=\"\"><img decoding=\"async\" data-no-lazy=\"1\" src=\"https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/5-Payroll-Mistakes-That-Can-Trigger-IRS-Penalties-and-How-to-Avoid-Them.jpg\" alt=\"5 Payroll Mistakes That Can Trigger IRS Penalties (and How to Avoid Them)\" class=\"wpr-anim-timing-ease-default\"><\/div><div class=\"wpr-grid-media-hover wpr-animation-wrap\"><div class=\"wpr-grid-media-hover-bg  wpr-overlay-fade-in wpr-anim-size-large wpr-anim-timing-ease-default wpr-anim-transparency\" data-url=\"https:\/\/theaccountingexpress.com\/blog\/payroll-mistakes-that-trigger-irs-penalties\/\"><\/div><\/div><\/div><div class=\"wpr-grid-item-below-content elementor-clearfix\"><h2 class=\"wpr-grid-item-title elementor-repeater-item-6550e56 wpr-grid-item-display-block wpr-grid-item-align-left wpr-pointer-none wpr-pointer-line-fx wpr-pointer-fx-fade\"><span class=\"ez-toc-section\" id=\"5_Payroll_Mistakes_That_Can_Trigger_IRS_Penalties_and_How_to_Avoid_Them\"><\/span><div class=\"inner-block\"><a target=\"_self\"  href=\"https:\/\/theaccountingexpress.com\/blog\/payroll-mistakes-that-trigger-irs-penalties\/\">5 Payroll Mistakes That Can Trigger IRS Penalties (and How to Avoid Them)<\/a><\/div><span class=\"ez-toc-section-end\"><\/span><\/h2><\/div><\/div><\/article><article class=\"wpr-grid-item elementor-clearfix post-975 post type-post status-publish format-standard has-post-thumbnail hentry 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class=\"wpr-anim-timing-ease-default\"><\/div><div class=\"wpr-grid-media-hover wpr-animation-wrap\"><div class=\"wpr-grid-media-hover-bg  wpr-overlay-fade-in wpr-anim-size-large wpr-anim-timing-ease-default wpr-anim-transparency\" data-url=\"https:\/\/theaccountingexpress.com\/blog\/investor-ready-books-san-francisco-startups-fundraising\/\"><\/div><\/div><\/div><div class=\"wpr-grid-item-below-content elementor-clearfix\"><h2 class=\"wpr-grid-item-title elementor-repeater-item-6550e56 wpr-grid-item-display-block wpr-grid-item-align-left wpr-pointer-none wpr-pointer-line-fx wpr-pointer-fx-fade\"><span class=\"ez-toc-section\" id=\"Investor-ready_Books_What_San_Francisco_Startups_Should_Fix_Before_Fundraising\"><\/span><div class=\"inner-block\"><a target=\"_self\"  href=\"https:\/\/theaccountingexpress.com\/blog\/investor-ready-books-san-francisco-startups-fundraising\/\">Investor-ready Books: What San Francisco Startups Should Fix Before Fundraising<\/a><\/div><span class=\"ez-toc-section-end\"><\/span><\/h2><\/div><\/div><\/article><article class=\"wpr-grid-item elementor-clearfix post-945 post type-post status-publish format-standard has-post-thumbnail hentry category-accounting-and-finance\"><div class=\"wpr-grid-item-inner\"><div class=\"wpr-grid-media-wrap wpr-effect-size-medium \" data-overlay-link=\"yes\"><div class=\"wpr-grid-image-wrap\" data-src=\"https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/Sales-Tax-Bookkeeping-In-Texas-The-Records-Retailers-And-Service-Businesses-Cannot-Ignore.jpg\" data-img-on-hover=\"\"  data-src-secondary=\"\"><img decoding=\"async\" data-no-lazy=\"1\" src=\"https:\/\/theaccountingexpress.com\/blog\/wp-content\/uploads\/2026\/07\/Sales-Tax-Bookkeeping-In-Texas-The-Records-Retailers-And-Service-Businesses-Cannot-Ignore.jpg\" alt=\"Sales Tax Bookkeeping In Texas The Records Retailers And Service Businesses Cannot Ignore\" class=\"wpr-anim-timing-ease-default\"><\/div><div class=\"wpr-grid-media-hover wpr-animation-wrap\"><div class=\"wpr-grid-media-hover-bg  wpr-overlay-fade-in wpr-anim-size-large wpr-anim-timing-ease-default wpr-anim-transparency\" data-url=\"https:\/\/theaccountingexpress.com\/blog\/texas-sales-tax-bookkeeping-records-retailers-service-businesses\/\"><\/div><\/div><\/div><div class=\"wpr-grid-item-below-content elementor-clearfix\"><h2 class=\"wpr-grid-item-title elementor-repeater-item-6550e56 wpr-grid-item-display-block wpr-grid-item-align-left wpr-pointer-none wpr-pointer-line-fx wpr-pointer-fx-fade\"><span class=\"ez-toc-section\" id=\"Sales_Tax_Bookkeeping_In_Texas_The_Records_Retailers_And_Service_Businesses_Cannot_Ignore\"><\/span><div class=\"inner-block\"><a target=\"_self\"  href=\"https:\/\/theaccountingexpress.com\/blog\/texas-sales-tax-bookkeeping-records-retailers-service-businesses\/\">Sales Tax Bookkeeping In Texas: The Records Retailers And Service Businesses Cannot Ignore<\/a><\/div><span 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class=\"ez-toc-section-end\"><\/span><\/h2><\/div><\/div><\/article><\/section>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-63ed389d elementor-widget elementor-widget-heading\" data-id=\"63ed389d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"Related_Tags\"><\/span>Related Tags<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-44b2b378 wpr-taxonomy-list-vertical elementor-widget elementor-widget-wpr-taxonomy-list\" data-id=\"44b2b378\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"wpr-taxonomy-list.default\">\n\t\t\t\t\t<ul class=\"wpr-taxonomy-list\" data-show-on-click=\"\"><li class=\"wpr-taxonomy\"data-term-id=\"4\"><span><span class=\"wpr-tax-wrap\"> <span><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-location-arrow\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M444.52 3.52L28.74 195.42c-47.97 22.39-31.98 92.75 19.19 92.75h175.91v175.91c0 51.17 70.36 67.17 92.75 19.19l191.9-415.78c15.99-38.39-25.59-79.97-63.97-63.97z\"><\/path><\/svg><\/span><span>bookkeeping and tax services<\/span><\/span><\/span><\/li><li class=\"wpr-taxonomy\"data-term-id=\"2\"><span><span class=\"wpr-tax-wrap\"> <span><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-location-arrow\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M444.52 3.52L28.74 195.42c-47.97 22.39-31.98 92.75 19.19 92.75h175.91v175.91c0 51.17 70.36 67.17 92.75 19.19l191.9-415.78c15.99-38.39-25.59-79.97-63.97-63.97z\"><\/path><\/svg><\/span><span>bookkeeping services<\/span><\/span><\/span><\/li><li class=\"wpr-taxonomy\"data-term-id=\"12\"><span><span class=\"wpr-tax-wrap\"> <span><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-location-arrow\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M444.52 3.52L28.74 195.42c-47.97 22.39-31.98 92.75 19.19 92.75h175.91v175.91c0 51.17 70.36 67.17 92.75 19.19l191.9-415.78c15.99-38.39-25.59-79.97-63.97-63.97z\"><\/path><\/svg><\/span><span>CFO Accounting Services<\/span><\/span><\/span><\/li><li class=\"wpr-taxonomy\"data-term-id=\"8\"><span><span class=\"wpr-tax-wrap\"> <span><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-location-arrow\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M444.52 3.52L28.74 195.42c-47.97 22.39-31.98 92.75 19.19 92.75h175.91v175.91c0 51.17 70.36 67.17 92.75 19.19l191.9-415.78c15.99-38.39-25.59-79.97-63.97-63.97z\"><\/path><\/svg><\/span><span>CFO Services<\/span><\/span><\/span><\/li><li class=\"wpr-taxonomy\"data-term-id=\"9\"><span><span class=\"wpr-tax-wrap\"> <span><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-location-arrow\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M444.52 3.52L28.74 195.42c-47.97 22.39-31.98 92.75 19.19 92.75h175.91v175.91c0 51.17 70.36 67.17 92.75 19.19l191.9-415.78c15.99-38.39-25.59-79.97-63.97-63.97z\"><\/path><\/svg><\/span><span>Fractional CFO Services<\/span><\/span><\/span><\/li><li class=\"wpr-taxonomy\"data-term-id=\"3\"><span><span class=\"wpr-tax-wrap\"> <span><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-location-arrow\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M444.52 3.52L28.74 195.42c-47.97 22.39-31.98 92.75 19.19 92.75h175.91v175.91c0 51.17 70.36 67.17 92.75 19.19l191.9-415.78c15.99-38.39-25.59-79.97-63.97-63.97z\"><\/path><\/svg><\/span><span>online accounting and bookkeeping services<\/span><\/span><\/span><\/li><\/ul>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Author Info 17 Min 148 Views John Flores Content Marketing Enthusiast 5 Payroll Mistakes That Can Trigger IRS Penalties (and How to Avoid Them) In the world of business, there are dozens of moving parts, and payroll can have a significant impact. Penalties for missed deposits, misclassified employees, and incorrect filings can accumulate quickly and sometimes reach thousands of dollars due to a single mistake by the IRS. That is why many companies that are growing are looking for payroll management services that will ensure that their payroll is accurate and on time. Employers have specific deadlines to report and withhold wages, tips, and withheld taxes, and the IRS will be on their radar if those deadlines are not met, according to the IRS itself, in its Payroll Professionals Tax Center. Payroll Mistakes Are Costing You Thousands \u2014 Are You Making These 5 Errors? Late deposits, misclassified workers, incorrect filings \u2014 the IRS doesn&#8217;t forgive. Learn how to avoid these costly mistakes and keep your business safe. Get Free Payroll Error Check What Is Payroll Management and How Does It Work? What is Payroll Management and How Does it Work? Payroll management is essentially about calculating payroll, withholding federal and state taxes, paying them to the IRS on a specific schedule, and filing quarterly returns and year-end forms, such as W-2s. Payroll can be handled by a business manually, using software, or by outsourcing to a payroll service provider. Manual methods introduce additional opportunities for human error, whereas professional payroll management services incorporate compliance monitoring directly into the procedure, lowering the chances of failing to meet deadlines or making errors. Common Payroll Mistakes and How to Avoid Them Understanding where common payroll mistakes can occur is the first step in Common Payroll Mistakes and How to Avoid Them. The IRS applies penalties that increase with the delay in a deposit, and a late deposit of just a few days can equal real money for a business. Here are the five most common penalties that cause penalties: Missing deposit deadlines: late deposits incur a penalty starting at 2%, rising to 15% the longer they go unpaid. Misclassifying employees as contractors: triggers back taxes, interest, and penalties once corrected. Filing Form 941 late: failure-to-file penalties accrue at 5% per month, up to 25% of the unpaid tax. Inaccurate wage calculations: manual data-entry errors can lead to underpayment penalties. Poor recordkeeping: missing documentation makes it harder to dispute a penalty later. Don&#8217;t Let Payroll Mistakes Trigger an IRS Nightmare \u2014 Fix Them Now One wrong calculation can lead to penalties and audits. Discover the 5 most common payroll errors and exactly how to prevent them in your business. Claim Free Payroll Consultation How Much Do Payroll Services Cost for Small Businesses? Owners frequently have a hard time deciding whether to outsource payroll or handle it in-house because of the cost of payroll services for small businesses. The fees are usually based on the range of services provided, whether it&#8217;s just filing taxes or comprehensive HR services, the frequency of payments, and the company size. The fee seems like another expense, but it is typically not as high as the cost of an IRS penalty, so many small teams consider it a good investment rather than a luxury. Service Level Typical Monthly Cost What&#8217;s Included Basic $40\u2013$80 + per employee fee Tax deposits, direct deposit Standard $80\u2013$150 + per employee fee Filings, W-2s, compliance alerts Full-Service $150+ HR support, benefits admin 7 Benefits of Outsourcing Payroll Services Outsourcing your payroll services offers more than just a way to avoid penalties; it introduces structure and accountability into an area that&#8217;s simple to neglect during hectic weeks: Automated, on-time tax deposits Minimize misclassification errors. Compliance experts are available to assist. Time saved on administrative tasks Produce record-keeping and audits Easier year-end tax form processing As team size increases, scalability to support growth. How To Run Payroll For a Small Business: A Beginner&#8217;s Guide How To Run Payroll For a Small Business: A Beginner&#8217;s Guide will guide you step-by-step from the basics to more complex processes. New employers must have an Employer Identification Number, a clear payroll plan, and tracking of hours and withholdings from the start. After that, it&#8217;s a cycle of calculations, deductions, deposits, and quarterly and annual forms. It&#8217;s a much more relaxed cycle for businesses that work with companies such as The Accounting Express because they know what to expect and can manage all deadlines and documentation.&nbsp; According to one such report on payroll penalty trends, almost 40% of all small businesses end up paying a penalty due to this payroll error in a particular year, revealing the level of payroll errors and how avoidable they are. (Gloucester City News) Conclusion While it might not be the most thrilling aspect of running a business, payroll compliance is one of the most expensive things to get wrong. Little mistakes can add up to huge IRS penalties over the years, from failing to deposit a payroll check to incorrectly categorizing employees.&nbsp; Working with trusted payroll management services allows business owners to avoid missing payroll deadlines, minimize risks, and invest more time in growing their company rather than dealing with paperwork. The IRS Is Watching \u2014 Are Your Payroll Records Audit-Ready? Employee classifications, tax deposits, and filing deadlines \u2014 we&#8217;ll help you fix the 5 mistakes that trigger IRS penalties and give you peace of mind. Talk to a Payroll Expert Today FAQ&#8217;S What triggers an IRS payroll penalty? The most common reasons are late tax deposits, failure to file on time, and incorrect wage reporting. A delay of just a couple of days can result in a penalty, as the IRS assesses penalties based on the delay in making a deposit. Can a first-time payroll penalty be waived? Yes. Those companies that have a clean compliance record might get relief if they are quick to correct the mistake and show reasonable cause to the IRS. Is outsourcing payroll worth it for a small business?<\/p>\n","protected":false},"author":2,"featured_media":986,"comment_status":"open","ping_status":"open","sticky":false,"template":"elementor_header_footer","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-985","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting-and-finance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>5 Payroll Mistakes That Trigger IRS Penalties in 2026 Guide<\/title>\n<meta name=\"description\" content=\"Learn five common payroll mistakes that can trigger IRS penalties and discover practical tips to stay compliant, reduce errors, and avoid costly fines.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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