In this episode, I’m breaking down the payroll pitfalls I’m seeing small business owners run into as we head into 2025—and why payroll compliance isn’t optional, it’s survival. I sat down with Ryan, a Payroll Compliance Specialist, to walk through the biggest updates you need on your radar right now, especially the Department of Labor changes to the Fair Labor Standards Act (FLSA). Starting January 1, 2025, the minimum salary threshold for exempt employees increases to $844 per week ($43,888 annually), and then it jumps again on July 1, 2025 to $1,128 per week ($58,656 annually). If you don’t review your exempt roles, you could accidentally trigger overtime liability. We also cover why small teams (even under 10 employees) are actually more vulnerable—because most don’t have HR or legal support watching these changes. Ryan outlines four common mistakes: misclassifying workers as contractors, missing payroll tax deposit deadlines, ignoring state/local tax updates, and filing inaccurate or late W-2s/1099s. My biggest takeaway: payroll software helps, but it doesn’t protect you if you enter the wrong data. The action step I want you to take is simple—schedule a payroll compliance review before your next payroll run, so you’re not scrambling after an audit or a complaint.