A recent EY study of U.S. businesses placed the average cost of one payroll error at $339 (up from $291 in 2022). If this weren’t enough, EY found that a 1,000-employee company could lose $1,073,889 per year just to fix the most common payroll errors across all categories.
An organization with an ineffective payroll process risks wasting significant amounts of money for:
- labor
- voids and reversals
- rushed paper checks
- and other time-consuming corrections
It doesn’t matter if an employee is salaried or hourly; if they get paid, they can get paid incorrectly. And a single mistake triggers an avalanche of potential consequences.
There’s still more to this equation. On average, a full-time payroll employee sinks nearly 29 workweeks into correcting errors. That’s over half a year lost to preventable issues. Without the burden of a broken process, the same employee could invest time into work that actually brings value to their employer.
Luckily, rampant payroll errors don’t have to be the norm.
How do businesses prevent payroll errors?
Mistakes are only problems when they’re not fixed early. With a traditional payroll process, corrections are always reactive. Getting ahead of these issues means putting payroll where it always belonged: in your people’s hands.
Beti® is Paycom’s automated payroll experience. For each scheduled pay period, it self-starts and self-builds. Along the way, it automatically identifies errors, then guides employees to fix them before submission. That way, employees can ensure payday arrives with accuracy, not unwanted surprises.