Paycom-commissioned EY analysis shows payroll error costs rise nearly 20% to $339 each
PAYC•A Paycom-commissioned EY analysis estimates the average cost of correcting a payroll error at $339 in 2026, nearly 20% higher than in 2022. Respondents reported errors in one in five payrolls.
1. Payroll error costs
The analysis updates 2022 survey data from more than 500 respondents with payroll responsibilities at U.S. companies, adjusting the estimates for inflation. Time, attendance and expense errors were most common, costing an estimated $289,722 annually per 1,000 employees across 1,139 incidents; the five most time-consuming error types require nearly 29 workweeks a year to correct per 1,000 employees.
