Payroll Compliance in Oklahoma: Avoid These Common Employer Mistakes

Staying compliant with payroll laws in Oklahoma isn't optional. For small business owners, payroll compliance mistakes can lead to IRS penalties, state audits, and employee dissatisfaction. At Boulanger CPA, we help Oklahoma businesses avoid those risks by providing CPA-led payroll services that are accurate, compliant, and headache-free.
This post will walk you through the most common payroll mistakes we see among Oklahoma business owners — and how to fix or avoid them altogether.
1. Misclassifying Employees and Independent Contractors
What goes wrong:
- Paying a full-time worker as a 1099 contractor
- Avoiding payroll taxes by labeling employees as contractors
Why it matters: Misclassification can trigger IRS audits, state back taxes, and penalties — plus potential liability for unpaid benefits.
How to avoid it:
- Use the IRS's common law test or Form SS-8 to determine classification
- When in doubt, classify as W-2 and withhold payroll taxes
- Let a CPA review your workforce structure
2. Missing or Late Payroll Tax Deposits
Late or missing federal or state payroll deposits are one of the fastest ways to get in trouble with the IRS or the Oklahoma Tax Commission.
Avoid it by:
- Using automated deposit scheduling through your payroll provider
- Working with a CPA firm that ensures tax remittance deadlines are met
- Reviewing your federal and state deposit calendar quarterly
3. Failing to File Quarterly and Year-End Returns
Oklahoma employers must file:
- Federal: Form 941 (quarterly), Form 940 (annually)
- State: OESC reports and Oklahoma Withholding Tax returns
Solution:
- Confirm your payroll provider (or CPA) handles both federal and state filings
- Get proof of filing confirmations every quarter
- Maintain digital and hard copy archives of all reports
4. Not Issuing W-2s and 1099s on Time
Federal and Oklahoma deadlines for W-2s and 1099s are January 31.
Fix it by:
- Keeping contractor and employee info up to date all year
- Using software or a CPA-led service that automatically handles year-end filings
- Double-checking totals and EINs well before the deadline
5. Not Keeping Up with Oklahoma Wage & Hour Rules
Where businesses slip up:
- Miscalculating overtime for salaried employees
- Delaying final paychecks after termination
- Forgetting Oklahoma's pay frequency laws
Stay compliant by:
- Documenting your pay policies clearly
- Auditing payroll calculations quarterly
- Asking your CPA for a compliance check
6. Using Outdated Payroll Software or DIY Tools
The risk:
- Errors in tax rates or deadlines
- No compliance safeguards
- No one to catch or fix mistakes
What we recommend:
- Upgrade to a CPA-led payroll service that stays current with both IRS and Oklahoma rules
- Eliminate manual entries and guesswork
- Get real support when you need it
Why CPA-Led Payroll Services Make a Difference
At Boulanger CPA, our Oklahoma-based payroll services are built to eliminate compliance headaches. We’re not just processors — we’re your partners in accuracy, filings, and protection against penalties.
- IRS and Oklahoma tax deposits? Done.
- Quarterly returns? Filed.
- Year-end forms? Issued.
- Peace of mind? Guaranteed.
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Frequently Asked Questions
What happens if I miss a payroll tax deposit?
You may face late deposit penalties, interest, and possible notices from the IRS or Oklahoma Tax Commission.
Can I issue 1099s instead of W-2s to save on taxes?
Only if the worker meets the legal definition of an independent contractor. Misclassification can lead to serious penalties.
Do I have to file both federal and Oklahoma payroll returns?
Yes. Oklahoma employers must file with both the IRS and state agencies.
How do I know if my payroll provider is compliant?
Ask for filing confirmations and a clear schedule of deposits and returns. Or switch to a CPA firm that handles it for you.

Marc Boulanger
Marc views his accounting business as an extension of his family. And while he holds a Bachelor of Arts in Business Administration and Accounting and a Masters of Science in Accounting, he values traveling around the country with his wife of 30 years and 5 kids, Marc learned that communication is the key to effective team work.