Running payroll may seem simple on the surface, but even small mistakes can lead to compliance issues, unhappy employees, and costly fines. For business owners in Conway, South Carolina, staying on top of payroll requirements is essential. At Peavy & Associates, PC, we’ve helped many local employers navigate these challenges with ease.

Here are the top payroll pitfalls we see—and how to avoid them.

1. Misclassifying Employees and Contractors

One of the most common payroll mistakes is treating workers as independent contractors when they should be employees. Misclassification can result in penalties for unpaid payroll taxes. Working with a knowledgeable CPA ensures your team is properly classified under IRS and South Carolina law.

2. Missing Tax Deadlines

Employers must withhold, report, and remit federal and state payroll taxes on time. Missing these deadlines can trigger penalties and interest charges. A reliable payroll system or outsourced service keeps everything on schedule.

3. Incorrect Overtime Calculations

Overtime rules can be tricky, especially for businesses with part-time or seasonal staff. Miscalculating overtime pay not only frustrates employees but may also lead to compliance issues under labor laws.

4. Poor Recordkeeping

Accurate payroll records are required by both the IRS and the South Carolina Department of Revenue. Incomplete or disorganized records can create headaches during audits. Keeping detailed documentation of hours worked, pay rates, and tax filings is essential.

5. Lack of Confidentiality and Security

Payroll data contains sensitive employee information. Failing to protect this data can lead to identity theft, loss of trust, and even legal consequences. Secure payroll systems and professional oversight help prevent breaches.

Avoid Payroll Stress with Peavy & Associates

Payroll doesn’t have to be a burden. At Peavy & Associates, PC in Conway, we provide comprehensive payroll services that ensure accuracy, compliance, and peace of mind for local employers. From small businesses to larger organizations, we customize solutions to fit your needs.

📞 Call us today to learn how our Conway payroll services can save you time, reduce risk, and keep your employees happy.