EY Survey: Cost Per Payroll Error Climbs to $339 Average for Companies
An EY analysis commissioned by Paycom estimates the average cost to correct a single payroll error has risen to $339—approximately 20% higher than EY's 2022 baseline—after adjusting for 2026 inflation. The figure gives HR and payroll technology buyers a concrete cost anchor, though the funder relationship warrants scrutiny.
Key facts
- Average cost to correct a single payroll error: $339 (2026 inflation-adjusted estimate)
- Represents approximately a 20% increase over EY's 2022 baseline figure
- Analysis conducted by EY and commissioned (funded) by Paycom
- Distributed via Business Wire; full methodology has not been publicly disclosed
- No sample size, industry breakdown, or company-size segmentation reported in available materials
Payroll errors are getting more expensive to fix—and a new EY analysis puts a precise dollar figure on that reality.
An EY study commissioned and funded by payroll technology company Paycom estimates that correcting a single payroll error now costs an average of $339, once adjusted for 2026 inflation levels. That marks an increase of approximately 20% compared to EY's own 2022 baseline figure, according to Paycom.
While the methodology behind the model has not been fully disclosed in available materials, the framework reportedly accounts for the labor, administrative, and compliance-related costs associated with identifying and resolving payroll discrepancies—a process that can involve HR staff, finance teams, payroll specialists, and in some cases legal or regulatory review.
The timing of the updated analysis is notable. Payroll software vendors, including Paycom, have increasingly positioned error-reduction capabilities as a measurable ROI driver for HR and finance leaders evaluating new platforms. A per-error cost figure like $339 translates directly into business-case math: organizations running thousands of payroll transactions per cycle have significant financial exposure if error rates remain unchecked.
Readers should weigh the findings with the funder relationship in mind. Because Paycom commissioned the EY analysis, the study serves a marketing purpose alongside any informational value—a common dynamic in vendor-sponsored research. EY's involvement lends methodological credibility, but independent replication of the $339 estimate has not been reported.
For HR technology buyers, the more actionable takeaway may be directional: payroll error costs are rising faster than general inflation would suggest, making the economic case for automated, self-correcting payroll systems stronger heading into 2026 and beyond.
Verified vendor profiles for the companies named above — DHRMap wires every story to its directory.
DHRMap tracks every HR-tech company over time — here's the rest of the coverage.
Payroll errors carry a growing price tag—$339 per incident, according to an EY model updated for current inflation. For HR and finance leaders, that number translates directly into ROI calculations when evaluating payroll automation, error-prevention tools, and self-service platforms. As inflation continues to drive up labor and compliance costs, even modest reductions in error rates can yield measurable savings at scale.
