{"id":1010773,"date":"2026-10-15T16:42:43","date_gmt":"2026-10-15T20:42:43","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/ey-survey-cost-per-payroll-error-climbs-to-339-average-for-companies\/"},"modified":"2026-10-15T16:42:43","modified_gmt":"2026-10-15T20:42:43","slug":"ey-survey-cost-per-payroll-error-climbs-to-339-average-for-companies","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/ey-survey-cost-per-payroll-error-climbs-to-339-average-for-companies\/","title":{"rendered":"EY Survey: Cost Per Payroll Error Climbs to $339 Average for Companies"},"content":{"rendered":"

<\/p>\n

EY Survey: Cost Per Payroll Error Climbs to $339 Average for Companies<\/b><\/p>\n

Updated EY analysis shows correcting the most time-consuming errors can take over six months of staff time for a 1,000-employee company<\/i><\/p>\n

OKLAHOMA CITY–(BUSINESS WIRE<\/a>)–Paycom Software, Inc. (NYSE: PAYC)<\/a> (\u201cPaycom\u201d), a leading provider of comprehensive, cloud-based human capital management software, has found through a commissioned EY analysis that organizations spend an estimated average of $339 to correct each payroll error. The 2026 figures reflect EY\u2019s inflation-adjusted update of survey data collected in 2022. The cost per error is up nearly 20% from EY\u2019s 2022 findings, when Paycom first commissioned the study.<\/p>\n

This press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20261015000761\/en\/<\/a><\/p>\n

\"Payroll<\/p>\n

Payroll errors now cost companies an estimated average of $339 each.<\/p>\n<\/div>\n

\nAccording to EY, respondents reported payroll errors occurring in 1 of 5 payrolls, highlighting how the costs can accumulate quickly.<\/p>\n

\n\u201cThe best payroll error is the one that never happens,\u201d said Chad Richison, founder and CEO of Paycom. \u201cPaycom uses automation to prevent errors before they reach an employee\u2019s paycheck, delivering the accuracy they depend on.\u201d<\/p>\n

\nA composite organization representative of clients that used Paycom\u2019s automated payroll experience, Beti\u00ae<\/sup>, reduced the time spent correcting payroll errors by 85%.* Beti is designed to automatically identify discrepancies and guide employees to resolve them before payroll submission. Additionally, across Paycom\u2019s software, decisioning logic takes automation beyond tasks by applying predefined business rules to routine decisions, helping organizations reduce manual work and improve consistency across HR and payroll.<\/p>\n

What are the most common types of payroll errors?<\/strong><\/p>\n

\nTime, attendance and expense issues are the most common category of payroll errors, occurring 1,139 times annually per 1,000 employees. EY estimated that these errors cost an organization $289,722 per 1,000 employees each year, an increase of more than $40,000 since 2022. These calculations focus specifically on the cost of payroll errors and do not include potential compliance costs or other financial consequences, which can add to the broader impact on an organization.<\/p>\n

\nPaycom\u2019s Time-Off Requests featuring GONE\u00ae<\/sup> is designed to reduce time and attendance errors through decisioning logic that automates time-off decisions based on client-defined criteria. Approved requests flow directly into payroll, which reduces manual intervention and helps prevent downstream payroll errors.<\/p>\n\n\n\n\n\n\n\n\n
\n

Payroll error category<\/b><\/p>\n<\/td>\n

\n

Errors per 1,000 employees per year<\/b><\/p>\n<\/td>\n

\n

Cost per 1,000 employees per year<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nTime, attendance and expense<\/p>\n<\/td>\n

\n

\n1,139<\/p>\n<\/td>\n

\n

\n$289,722<\/p>\n<\/td>\n<\/tr>\n

\n

\nVacation, paid time off and sick time requests\u00a0<\/p>\n<\/td>\n

\n

\n721<\/p>\n<\/td>\n

\n

\n$255,252<\/p>\n<\/td>\n<\/tr>\n

\n

\nBenefits<\/p>\n<\/td>\n

\n

\n503<\/p>\n<\/td>\n

\n

\n$162,213<\/p>\n<\/td>\n<\/tr>\n

\n

\nSchedule earnings and deductions<\/p>\n<\/td>\n

\n

\n410<\/p>\n<\/td>\n

\n

\n$157,540<\/p>\n<\/td>\n<\/tr>\n

\n

\nW-4 and tax allocation changes<\/p>\n<\/td>\n

\n

\n229<\/p>\n<\/td>\n

\n

\n$157,214<\/p>\n<\/td>\n<\/tr>\n

\n

\nDirect deposit<\/p>\n<\/td>\n

\n

\n159<\/p>\n<\/td>\n

\n

\n$51,948<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

How long does it take to correct payroll errors?<\/strong><\/p>\n

\nThe report also highlighted the most time-consuming payroll errors, which include missing or incorrect time punches, missing expenses, uniform charge errors, sick time not entered and health savings plan setup errors.<\/p>\n