Now that Q3 is underway and the summer will soon be coming to an end, many businesses are preparing for the “September Surge.” This month usually marks the start of business ramping up before year end and can be tricky to manage without proper planning. In this guide, we will go over what the September surge is, common mistakes people make, and how to best prepare. 

What is the September Surge? 

The September Surge is a phrase used to describe the uptick in hiring that a lot of businesses experience after the slower summer months. This is often the result of wanting to increase headcounts before year-end or trying to get ahead of Q1 needs for the following year. This is also why a lot of jobseekers see an increase in opportunities after the end of August, as businesses refocus on expansion goals. 

Common Payroll Mistakes 

During the September Surge, many of the common challenges companies face stem from the increased hiring volume. Increased volume leads to more chances for mistakes and oversights, and without proper planning you could find yourself making some of these errors. 

• Missing overtime and schedule adjustments: As employees shift back from summer hours and hiring ramps back up, errors regarding overtime and shift changes might fall through the cracks. 

• Incorrect PTO and vacation balance updates: Employees often use remaining vacation time before the end of the year, while new hires may be accruing leave under different policies. Failing to accurately update PTO balances can lead to payroll issues, employee frustration, and compliance concerns. 

• Late or inaccurate new-hire setup: A surge of new employees increases the likelihood of data entry mistakes, missing tax forms, incorrect pay rates, or delayed onboarding. These errors can result in missed or inaccurate paychecks, creating a negative first impression for new team members. 

• Poor coordination between HR and payroll: During busy hiring periods, communication gaps between HR and payroll teams can cause employee information to be entered incorrectly or not updated in time. Changes to compensation, job classifications, or employment status may be missed, leading to payroll mistakes. 

• Benefit deduction errors: Open enrollment periods, benefit elections, and new-hire enrollments often overlap with fall hiring. Incorrect deductions for health insurance, retirement plans, or other benefits can result in costly corrections and employee frustration. 

• Insufficient payroll quality checks: When payroll teams are focused on managing increased workloads, routine audits and verification processes may be rushed or skipped. Without thorough quality checks, small mistakes can go unnoticed and become bigger, more time-consuming issues to fix later. 

By proactively reviewing payroll processes, strengthening communication between departments, and doing regular audits, employers can reduce the risk of costly mistakes and get through the September hiring surge with confidence. 

How to Prepare Your Human Resources and Payroll Teams 

The first step to handling the September surge is getting on the same page as your HR and payroll teams. Having conversations on what needs to be tweaked before peak season will help you plan better and keep things running smoothly. Here are some steps to take: 

• Update job descriptions: Make sure job postings are current, clear, and match today’s expectations. 

• Clean up your onboarding process: A busy hiring season can expose slow or messy systems. Make onboarding simple and organized before new hires start coming in. 

• Start building a candidate pipeline early: Don’t wait until positions open up. Start connecting with strong candidates now. 

• Prepare managers for interviews: Hiring slows down when managers delay feedback or aren’t aligned on what they want. 

• Check your HR systems: Make sure your ATS, scheduling tools, and communication processes can handle more applicants. 

• Review payroll processes: Increased hiring means more employee records, direct deposit setups, and tax forms. Make sure your payroll workflows are efficient and up to date. 

• Verify payroll compliance: Review wage laws, tax requirements, and any state-specific regulations to help avoid costly mistakes. 

• Prepare for employee questions: New hires often have questions about pay schedules, direct deposit, tax withholding, and benefits deductions. Having answers ready can improve the onboarding experience. 

• Coordinate payroll and HR teams: Clear communication between payroll and HR helps ensure employee information is entered accurately and on time. 

• Focus on retention: September often brings more employee movement. Keeping good employees matters just as much as hiring new ones. 

With these proactive checks in place, you can set yourself up for a smoother September and end-of-year. A little planning now can go a long way when it comes to reducing errors and giving your staff the resources they need to pivot when necessary. 

Feeling a bit overwhelmed? Don’t worry. We can help. 

Need Help? We’ve Got You Covered 

September hiring season moves fast, and the companies that start getting ready early usually come out ahead. A prepared payroll team can make the difference between scrambling to fill positions and confidently building the team your business needs to finish the year strong. 

That’s where we come in.  

Instead of spending hours running your own payroll, why not trust the team of experts at PaulHood? We can keep your payroll running smoothly so you can focus on your business and not the September surge. Click here to learn more.