Starting a new job? You might want to make sure that everything is lined up to get your paycheck ready, which could require connecting some information and transferring some data from your last employer to your current one. If not, you could put yourself in jeopardy of hitting some payroll errors that could potentially be costly.
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Here are five common paycheck mistakes to avoid when you’re switching jobs.
One of the biggest and most expensive mistakes you can make on your paycheck is assuming your last paycheck includes all owed compensation from your previous workplace.
“Bonuses, unused PTO and final commissions often fall through the cracks if you don’t advocate for them upfront,” advised Patrice Williams-Lindo, the CEO of Career Nomad.
Krusha Sahjwani Malkani, the director of Sociabble‘s Asia operations, suggested that everyone “check if your new job offers a similar benefits package or has a waiting period before the benefits kick in. Many employees fail to check their potential loss of vacation or sick leave, and this leads to financial loss.”
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According to Williams-Lindo, forgetting to verify the new pay cycle is something that happens frequently when employees transition from one employer to another.
“Many new hires go weeks without a paycheck due to different payroll schedules and are caught financially off guard,” Williams-Lindo described.
Sahjwani Malkani agreed, noting that “Every company has a different payroll schedule. Make sure to learn about your new pay cycle in the beginning to ensure there are no gaps in income. This proactiveness will help you plan your cash flow and avoid any financial strain during the transition.”
Leaving retirement contributions or equity on the table is another mistake that Williams-Lindo tends to see when someone changes up jobs or where they work.
Williams-Lindo explained that “[n]ot understanding vesting timelines or forgetting to roll over a 401(k) can be costly and create long-term financial setbacks.”
According to Sahjwani Malkani, many people forget to claim expenses like relocation reimbursements or signing bonuses if they are not clearly briefed during the transition from job to job.
“Make notes of these items and follow up on them if your new employer is offering such benefits,” advised Sahjwani Malkani.
