Payroll & Tax Tune-Up for Small Businesses: Avoid Fall Pitfalls

As summer winds down, smart business owners are taking stock. Are your payroll systems and tax processes in shape for the second half of the year?

From updated IRS rules to year-end prep, now is the time to tune up your payroll and avoid mistakes that can cost you later.

✅ Check Your Payroll Processes

If you’re running payroll manually or using outdated software, now’s the time for a check-in:

• Are all employees correctly classified as W-2 vs 1099?

• Have you applied new withholding rates for 2025?

• Are vacation, sick leave, and overtime policies clearly documented?

• Are you tracking fringe benefits like health insurance or stipends?

🧾 North Carolina requires certain filings for payroll taxes—catching errors now prevents fines later.

🧑‍💼 Review Contractor Payments

Many small businesses rely on contractors or gig workers. Make sure:

• You’ve collected W-9 forms

• You’re tracking all payments for future 1099-NEC reporting

• You’re aware of the $2,000 reporting threshold starting in 2026

Misclassifying workers or losing track of payments can lead to expensive audits.

📅 Prep for Q3 and Q4

The third quarter ends in September—but it’s not too late to course-correct:

• Review quarterly estimated tax payments

• Organize expense records for write-offs

• Get payroll reports ready for year-end filings (W-2s, 1099s, etc.)

Getting ahead now means less scrambling in December.

📍 Local Tip for Garner & Clayton, NC Businesses

Don’t forget North Carolina-specific requirements for unemployment insurance, NC-5 filings, and local wage reporting. If your business has grown in 2025, your thresholds may have changed.

🧭 Let Tax Pros HQ Help

Whether you’re behind on payroll cleanup or just want a second set of eyes, we’re here to make it easy.

📞 Book a payroll + tax checkup now—we’ll help you tie up loose ends before they become problems.

Tax Pros HQ – We’re with you, every quarter.