Let’s be honest: payroll is never fun — but it’s especially tricky in August.
Between team vacations, adjusted summer hours, and early prep for Q4, this month throws plenty of curveballs your way. If you’re not careful, payroll can quickly become a source of stress, errors, or even fines. But it doesn’t have to be.
Here are some timely, practical payroll tips to help you keep everything running smoothly — without losing your sanity in the process.
Don’t Let Classifications Slip Through the Cracks
If your business has brought on freelancers, seasonal workers, or part-time help this summer, now’s the time to confirm whether they’ve been correctly classified. Mistaking an employee for an independent contractor (or vice versa) can lead to audits, penalties, and headaches you really don’t need.
🔎 What to check:
- Who controls their schedule?
- Who provides tools and training?
- Are they working for anyone else?
📎 Quick reference: IRS guidelines on worker classification
Prepare for Late-Summer PTO and Holiday Pay
August is one of the most common months for employee time off — and unapproved or untracked PTO can make payroll messy. Confirm that all time-off requests are logged, your scheduling system is synced with payroll, and any upcoming holiday pay rules are applied correctly.
Re Mid-Year is the Right Time for a Payroll Health Check
August sits in that sweet spot between mid-year reviews and the Q4 push. Use this moment to audit your payroll records — look for data mismatches, tax miscalculations, or outdated benefit deductions. Getting ahead of errors now makes your year-end reporting a lot cleaner (and less expensive).
💡 Pro tip: Match your payroll reports against bank statements and tax deposits to catch discrepancies early.
Real Check for New Wage Laws and Overtime Changes
State and local regulations don’t wait for January to kick in. In many places, minimum wage or overtime rules may have shifted mid-year. Make sure your systems and staff are up to date — especially if you operate across multiple jurisdictions.
⚠️ Real-world reminder:
The U.S. Department of Labor recovered over $322 million in back wages in 2023. Most of it? Avoidable with proper classification and OT calculations. (DOL WHD)
If Payroll Still Eats Up Your Time, Consider Outsourcing
No business owner should spend their best hours buried in spreadsheets or correcting pay stubs. If payroll is starting to dominate your week, it might be time to delegate. Outsourcing to a trusted partner can take care of processing, tax filings, direct deposits, and compliance — freeing you up to focus on what actually grows your business.
🧮 Stat to know:
According to the National Small Business Association, 36% of small business owners handle payroll themselves, and many spend 6+ hours per month on it. (NSBA Report)
Want to Simplify More Than Just Payroll
August doesn’t have to feel like a scramble. Grab our free August Survival Guide for Business Owners — a short, tactical resource packed with ideas to streamline operations, staffing, and HR this month and beyond.
Download the Guide and take some pressure off your plate.
Payroll may not be exciting, but it’s one of the clearest signs of how well your business is running behind the scenes. With a few smart moves this August — and the right support in your corner — you can stay compliant, reduce costly errors, and get back to leading your business with clarity and confidence.
