5 Payroll Tax Filing Mistakes That Cost Oklahoma Businesses Thousands

When it comes to payroll, even small mistakes can cost big money. Whether you’re filing federal returns, handling Oklahoma unemployment insurance, or issuing year-end forms, a misstep can result in penalties, interest, and IRS or OESC scrutiny.

At Boulanger CPA, we regularly help small businesses in Oklahoma recover from payroll filing mistakes — and prevent them from happening again. In this guide, we’ll break down the five most common payroll tax filing errors and how to avoid them.

1. Missing or Late Form 941 Filings

Every employer is required to file Form 941 (Employer’s Quarterly Federal Tax Return) to report wages, federal tax withheld, and both employer and employee FICA taxes.

Why It’s a Problem:

• The IRS imposes late filing penalties starting at 5% of the tax due — and up to 25% over time
• If you miss multiple quarters, your EIN may be flagged for audit

How to Avoid It:

• Use a CPA-led payroll provider that tracks filing dates
• Confirm you’re not relying on outdated software
• Set calendar reminders or subscribe to our quarterly compliance checklist

Missed one already? Use Form 941-X to correct it. We help with that too.

2. Incorrect or Missing Oklahoma OESC Filings

In addition to federal filings, you must report payroll to the Oklahoma Employment Security Commission (OESC) each quarter for unemployment tax purposes.

Common Errors:

• Reporting the wrong wage base (Oklahoma has an annual cap)
• Missing the deadline (generally due 1 month after quarter-end)
• Failing to update your employer rate when notified

Consequences:

• Late filing penalties
• Delayed tax account reconciliation with OTC and OESC
• Loss of eligibility for UI rate reductions

Need help navigating OESC filings? See our CPA Payroll Services for Oklahoma Businesses.

3. Using Outdated Payroll Tax Tables

Payroll tax rates change — sometimes multiple times a year. If your system doesn’t update automatically (like legacy software or spreadsheets), you might be under- or over-withholding.

Risks:

• Employee frustration
• Incorrect W-2s
• Year-end reconciliation headaches
• Audit flags from IRS or OTC

How to Prevent It:

• Use a modern HCM platform (like iSolved)
• Have a CPA review your system at least annually
• Recheck state and federal tax rates each January

4. Misclassifying Contractors and Employees

If you issue a 1099 when someone should receive a W-2, the IRS (and the state) can hit you with back taxes and penalties.

Oklahoma Red Flags Include:

• Requiring set hours
• Providing equipment and training
• Making the worker appear to be an employee on paper

Learn more in Payroll Compliance in Oklahoma

If you’re unsure, request a classification review. We offer that as part of our payroll onboarding.

5. Incorrect W-2s or Late Filing

By January 31 each year, you must issue W-2s to employees and file copies with the Social Security Administration (SSA). Oklahoma also requires electronic W-2 filing with the OTC.

Common Mistakes:

• Incorrect SSNs
• Wage totals that don’t match Forms 941
• Missed state copy submission

Penalties:

• $60 to $310 per W-2 if filed late or incorrect
• Increased scrutiny from both SSA and IRS

Avoid these mistakes with CPA-reviewed year-end payroll support

Don’t Let Filing Mistakes Derail Your Business

Boulanger CPA helps Oklahoma employers stay compliant, eliminate payroll stress, and avoid costly penalties.

Schedule a Free Payroll Consultation
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Serving small businesses in Oklahoma City, Norman, Tulsa, Moore, Edmond, and across the state.

FAQs – Payroll Filing Mistakes in Oklahoma