Payroll Errors Are More Common Than You Think — Here's How to Catch Them
Payroll mistakes are often small, unintentional, and easy to miss—but can add up over time. Learn how to spot them before they cost you.
Last updated: January 9, 2026
- •Payroll errors are more common than most people realize
- •Mistakes are often small and go unnoticed for months
- •Role, location, or benefits changes increase risk
- •Most issues are only fixed if the employee catches them
- •Small errors can cost hundreds or thousands over time
Why payroll errors happen
Most payroll mistakes are unintentional and happen during transitions or updates. Understanding common triggers helps you know when to double-check your pay.
Payroll systems are complex, and human error can slip in during data entry or system updates. Most mistakes happen during life changes or administrative updates, not because of malicious intent.
| Common Trigger | What Can Go Wrong |
|---|---|
| Role or salary change | Old rates or deductions remain in the system |
| Location change | State or local taxes misapplied or not updated |
| Benefits updates | Pre-tax vs post-tax items misclassified |
| Payroll adjustments | Temporary changes not reversed after the period ends |
| Bonuses or equity | Incorrect withholding method or rate applied |
Why people don't notice right away
Several factors make it easy to miss payroll errors, especially when the difference is small or gradual.
- •Pay is only slightly lower—maybe $50 or $100 per paycheck—so it doesn't stand out
- •HR or payroll says "everything looks normal" when asked, so you assume it's correct
- •Paychecks naturally fluctuate due to overtime, bonuses, or benefit changes, making small errors blend in
- •Most people don't know what their net pay should be, so they can't spot discrepancies
- •There's no alert when something is wrong—you have to catch it yourself
How much a small error can cost you
Even small payroll errors compound over time. The numbers speak for themselves.
A small difference per paycheck might not seem significant, but it adds up quickly over months or a year.
| Error per Paycheck | 6 Months | 12 Months |
|---|---|---|
| $50 | $1,300 | $2,600 |
| $100 | $2,600 | $5,200 |
| $220 | $5,720 | $11,440 |
* Assumes bi-weekly pay (26 paychecks per year). Adjust for your pay frequency.
How to check your paycheck in 5 minutes
A quick checklist to verify your paycheck is correct. Do this after any major change or if something feels off.
- Confirm gross pay matches your offerCheck that your salary or hourly rate is correct, especially after a raise or promotion.
- Review pre-tax deductions (401k, HSA, benefits)Verify contribution amounts match what you selected during open enrollment or when you updated your elections.
- Verify federal, state, and payroll taxesUse a calculator to estimate what your taxes should be based on your gross pay, location, and filing status.
- Compare expected vs actual net payCalculate what your take-home pay should be and compare it to what you actually received.
- Re-check after any role, location, or benefits changeThese transitions are when errors are most likely to occur.
Quick Check
If you want a quick way to sanity-check your paycheck, our Take-Home Pay Calculator can help estimate what your net pay should be based on your salary, location, and deductions.
What to do if something looks off
Calm, step-by-step guidance for addressing payroll discrepancies. Most issues can be resolved quickly once identified.
If you notice a discrepancy, don't panic. Most payroll errors are unintentional and can be corrected. Follow these steps:
- Recalculate independentlyUse a calculator or spreadsheet to verify what your pay should be. This gives you confidence in your numbers.
- Document discrepanciesNote the specific difference, which pay period(s) it affects, and any relevant context (recent changes, etc.).
- Contact payroll or HR with specificsProvide clear numbers and context. For example: "My gross pay is $5,000 but my net pay is $3,200. Based on my calculations, it should be $3,450."
- Follow up in writingEmail a summary of the conversation and any agreed-upon next steps. This creates a paper trail and helps ensure the issue is resolved.
Good to Know
Most payroll departments will correct legitimate errors once they're identified. Be patient but persistent, and keep records of all communications.