that requires this. The other taxing states require payroll to determine and report amounts paid for working in that state. These are a few of many
While payroll accuracy is measured primarily by whether employees are paid correctly and on time, in the United States, reporting accuracy can carry equal weight.
requirements that must be handled precisely to avoid compliance issues. This is where U.S. year-end
becomes less about processing and more about interpretation. Payroll teams must understand which wages are taxable versus reportable, which fields must mathematically agree, and when a “mismatch” is actually required! Measures of Payroll Accuracy These issues rarely surface in a single pay period. They show up at year-end, when totals are finalized and agencies compare what payroll reported against what they expect to see. While payroll accuracy is measured primarily by whether employees are paid correctly and on time, in the United States, reporting accuracy can carry equal weight. An error that never affected an employee’s net pay during the year can still trigger corrections, amended filings, and employee confusion once year-end reporting begins.
This is why U.S. payroll teams often remain in “year-end mode” well into the new year. Compliance risk extends through reconciliation, validation, and post-year-end support. Employees Are Active Participants in the U.S. Tax Process Shortly after payroll finishes its year-end in the U.S., employees must rely heavily on payroll- generated information to complete their personal tax filings. Payroll is considered a primary source of truth for understanding what was taxed, what wasn’t, and why their take-home pay changed over time. As a result, year-end brings heightened employee engagement with payroll data. Questions increase. Scrutiny increases. Trust matters just as
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ISSUE 20 GLOBAL PAYROLL MAGAZINE
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