Burkland Brief:

  • Growing teams and multi-state workforces introduce hidden payroll risks.
  • Weekly, monthly, and annual payroll routines help prevent costly errors.
  • Red flags like spreadsheet dependence or benefit mismatches are signs it’s time to tighten up.
  • This payroll checklist comes from real-world experience with hundreds of growing businesses.

If you’re like many of the businesses I work with, payroll started out simple. A few employees, a few tools, everything manageable. But as your team grows, the complexity increases, and so do the stakes.

One remote hire. One misclassified contractor. One missed filing deadline. That’s all it takes for payroll to go from routine to risky—creating distractions, compliance headaches, and frustrated employees.

This checklist outlines the important steps we use at Burkland to keep payroll clean, compliant, and running smoothly for our clients. Whether you’re handling it in-house or thinking about outsourcing, it’s your roadmap to making payroll a non-issue.

What to Check Before Every Payroll Run

  1. Review hours, bonuses, and commissions
    Make sure timecards, PTO, and variable comp are accurate and approved. One missing timesheet can delay a pay run or trigger backpay corrections later.
  2. Update for new hires, exits, and pay changes
    Each employee event creates a ripple effect: final pay requirements, benefits eligibility, access to systems. We confirm these details before every payroll run to stay compliant and accurate.
  3. Double-check tax withholdings and benefit deductions
    Multi-state payroll means multi-jurisdictional complexity. We verify that withholdings align with where employees actually work, and that benefit deductions match current enrollments.
  4. Run pre-submission reports
    We always review for red flags like duplicate entries, odd net pay amounts, or bank account errors. These small issues can create big problems if they go unnoticed.

What to Handle Monthly or Quarterly

  1. File and pay payroll taxes on time
    Federal (Form 941), state, and local payroll filings must be submitted according to your deposit schedule. Late payments equal automatic penalties.
  2. Reconcile benefit deductions with provider invoices
    We compare what was deducted in payroll with what benefit carriers are billing. This helps catch errors early, especially when employees change plans or coverage mid-year.
  3. Review contractor payments and classification
    Contractors paid more than $600 must be tracked for 1099 reporting. We also keep an eye out for misclassified contractors (especially those in gray areas) by reviewing their project roles and how closely they function within your organization.
  4. Monitor wage garnishments and legal deductions
    Court orders for child support or tax liens must be deducted and remitted correctly. We ensure everything is up to date and filed on time.
📄Related Article: Tax Risks That Sneak Up on Business Owners

What to Review Annually

  1. Verify employee classifications
    End-of-year is a perfect time to recheck exempt vs. non-exempt status, as well as 1099 vs. W-2 designations. We help our clients avoid misclassification penalties, which are common during audits and due diligence.
  2. Prepare W-2s and 1099s early
    We begin data checks well before January to make sure addresses are current and totals are accurate. A clean dataset means a smooth closeout to the year.
  3. Confirm state and local tax registrations
    Hiring even one remote employee in a new state may require registering with that state’s tax and labor agencies. We flag this early so our clients don’t get surprise notices.
  4. Review compensation policies and documentation
    Annual bonuses, executive comp, and equity payouts need to be clearly tracked and supported. Especially important if you’re prepping for M&A or fundraising.

🚩 Payroll Red Flags to Watch Out For:

  • Payroll inputs still live in spreadsheets
  • You’ve hired in new states without registering for local payroll taxes
  • There’s no second set of eyes reviewing payroll before submission
  • Benefits are being deducted inconsistently or without proper documentation
  • Employees frequently ask the same pay-related questions—and don’t get clear answers

When we see these patterns, it’s a signal that payroll has outgrown the current process, and it’s time to put stronger systems in place.

Let’s Make Payroll the Least of Your Worries

Great payroll doesn’t call attention to itself. It runs smoothly, stays compliant, and quietly keeps everything on track. But when it breaks down, it drains time and erodes trust.

At Burkland, we help business owners take payroll off their plate accurately and efficiently. From multi-state compliance and tax filings to benefit reconciliations and classification reviews, we handle the details so you can get back to running your business, not chasing down payroll issues.

Learn more about Burkland’s payroll services and contact us to get started. Let’s make payroll one less thing to think about.