What to Do if You’ve Made a Payroll Mistake in Oklahoma

Payroll mistakes happen. Whether it’s a missed filing, an incorrect paycheck, or a forgotten tax deposit, even the most diligent business owners in Oklahoma can make errors. The key isn’t to panic — it’s to take swift, informed action to fix the problem, limit your exposure, and prevent it from happening again.

In this post, we’ll walk you through the most common payroll mistakes Oklahoma employers make, what to do if you’ve made one, and how Boulanger CPA can help you clean it up.

Common Payroll Mistakes We See in Oklahoma

Missed Payroll Tax Deposits

If you forget to remit payroll taxes to the IRS or the Oklahoma Tax Commission (OTC), you’ll likely face:

• Late deposit penalties (up to 15%)
• Interest charges
• Automatic notices or liens

Incorrect Paychecks

Overpaying or underpaying employees — especially overtime or bonuses — can:

• Trigger wage disputes
• Lead to Department of Labor investigations
• Cause employee churn and morale issues

Misclassification of Workers

Labeling someone as a 1099 contractor when they’re actually a W-2 employee can result in:

• Back taxes
• Employment audits
• IRS and OESC penalties

Learn more about worker classification here.

Late or Missing Filings (Forms 941, 940, OTC, OESC)

Late quarterly filings can snowball into:

• IRS Form 941 penalties
• Oklahoma unemployment insurance issues
• Disqualification of payroll deductions

Failure to Issue W-2s or 1099s on Time

W-2s and 1099s must be issued by January 31 — late filings can lead to fines and state inquiries.

Check out our Payroll Compliance Checklist.

Step-by-Step: What to Do If You’ve Made a Payroll Error

1. Identify the Error Immediately

Run payroll reports and compare them to:

• Past 941s and 940s
• OTC and OESC filings
• Paycheck summaries and PTO records

2. Notify Affected Employees (If Applicable)

If an employee was underpaid, overpaid, or received an incorrect W-2:

• Contact them in writing
• Document the correction plan
• Adjust their pay or reissue a corrected W-2 (Form W-2c)

3. Review Your Payroll System Settings

• Were tax tables outdated?
• Was the wrong deduction code used?
• Did PTO settings or wage types create issues?

If you're using basic software like QuickBooks Payroll or Gusto, mistakes may not be flagged.

We use iSolved — a full HCM platform for Oklahoma businesses that reduces risk and improves accuracy.

4. File Corrected Forms

Use:

• Form 941-X for federal payroll corrections
• W-2c and 1099-NEC corrected forms for year-end issues
• Oklahoma-specific correction forms through OTC and OESC portals

Need help? Talk to our team about IRS and OTC correction support.

5. Pay Penalties Promptly (or Request Abatement)

Sometimes, paying a small penalty right away is better than letting it linger. But if this is your first offense or you can show reasonable cause, you may qualify for abatement.

Learn about abatement options in How to Fix Missed or Incorrect 941 Filings in Oklahoma.

6. Set Up Ongoing Oversight

If your current provider doesn’t help you:

• Stay up to date on filings
• Reconcile quarterly payroll
• Catch wage miscalculations

…it may be time to switch to a CPA-led payroll solution.

How Boulanger CPA Helps Fix Payroll Mistakes

We offer complete payroll cleanup and recovery services, including:

• Filing back Forms 941, 940, OTC, and OESC returns
• Recalculating prior pay runs and issuing corrected pay stubs
• Preparing W-2c and 1099 amendments
• Communicating with IRS and Oklahoma agencies
• Creating a system to avoid future errors

Our pricing is simple and per-employee, and we make onboarding easy — even if you’re mid-year.

Ready to Get Payroll Back on Track?

Mistakes happen — but ignoring them only makes things worse. Boulanger CPA helps Oklahoma businesses fix payroll issues, file back returns, and stay compliant going forward.

View Our Payroll Pricing Per Employee
Schedule Your Free Payroll Consultation

Serving Oklahoma City, Tulsa, Norman, Moore, Edmond, and small business employers across Oklahoma.

Frequently Asked Questions