diff --git a/src/components/Payroll/PayrollConfiguration/PayrollConfiguration.tsx b/src/components/Payroll/PayrollConfiguration/PayrollConfiguration.tsx
index 9fca8279..8c29b3c3 100644
--- a/src/components/Payroll/PayrollConfiguration/PayrollConfiguration.tsx
+++ b/src/components/Payroll/PayrollConfiguration/PayrollConfiguration.tsx
@@ -1,5 +1,6 @@
-import { useEffect, useMemo, useState, type ReactNode } from 'react'
-import { useEmployeesListSuspense } from '@gusto/embedded-api/react-query/employeesList'
+import { useCallback, useEffect, useMemo, useRef, useState, type ReactNode } from 'react'
+import { useEmployeesList } from '@gusto/embedded-api/react-query/employeesList'
+import { keepPreviousData } from '@tanstack/react-query'
 import { usePayrollsGetSuspense } from '@gusto/embedded-api/react-query/payrollsGet'
 import { usePayrollsCalculateMutation } from '@gusto/embedded-api/react-query/payrollsCalculate'
 import type { Employee } from '@gusto/embedded-api/models/components/employee'
@@ -9,6 +10,7 @@ import { useTranslation } from 'react-i18next'
 import { usePayrollsUpdateMutation } from '@gusto/embedded-api/react-query/payrollsUpdate'
 import type { PayrollEmployeeCompensationsType } from '@gusto/embedded-api/models/components/payrollemployeecompensationstype'
 import type { PayrollUpdateEmployeeCompensations } from '@gusto/embedded-api/models/components/payrollupdate'
+import type { PayrollPrepared } from '@gusto/embedded-api/models/components/payrollprepared'
 import { usePreparedPayrollData } from '../usePreparedPayrollData'
 import { payrollSubmitHandler, type ApiPayrollBlocker } from '../PayrollBlocker/payrollHelpers'
 import { PayrollConfigurationPresentation } from './PayrollConfigurationPresentation'
@@ -18,6 +20,7 @@ import { componentEvents } from '@/shared/constants'
 import { useComponentDictionary, useI18n } from '@/i18n'
 import { useBase } from '@/components/Base'
 import type { PaginationItemsPerPage } from '@/components/Common/PaginationControl/PaginationControlTypes'
+import { Loading } from '@/components/Common'
 import { useDateFormatter } from '@/hooks/useDateFormatter'
 
 const isCalculating = (processingRequest?: PayrollProcessingRequest | null) =>
@@ -60,21 +63,48 @@ export const Root = ({
   const [isPolling, setIsPolling] = useState(false)
   const [payrollBlockers, setPayrollBlockers] = useState<ApiPayrollBlocker[]>([])
 
-  const { data: employeeData, isFetching: isFetchingEmployeeData } = useEmployeesListSuspense({
-    companyId,
-    payrollUuid: payrollId, // get back list of employees to specific payroll
-    per: itemsPerPage,
-    page: currentPage,
-    sortBy: 'name', // sort alphanumeric by employee last_names
-  })
+  const { data: employeeData, isFetching: isFetchingEmployeeData } = useEmployeesList(
+    {
+      companyId,
+      payrollUuid: payrollId,
+      per: itemsPerPage,
+      page: currentPage,
+      sortBy: 'name',
+    },
+    { placeholderData: keepPreviousData },
+  )
+
+  const employeeDataRef = useRef(employeeData)
+  employeeDataRef.current = employeeData
 
-  // get list of employee uuids to filter into prepare endpoint to get back employee_compensation data
   const employeeUuids = useMemo(() => {
-    return employeeData.showEmployees?.map(e => e.uuid) || []
-  }, [employeeData.showEmployees])
+    return employeeData?.showEmployees?.map(e => e.uuid) || []
+  }, [employeeData?.showEmployees])
+
+  const totalPages = Number(employeeData?.httpMeta.response.headers.get('x-total-pages') ?? 1)
+  const totalCount = Number(employeeData?.httpMeta.response.headers.get('x-total-count') ?? 0)
+
+  const [displayedEmployees, setDisplayedEmployees] = useState<Employee[]>([])
+  const [isDataInSync, setIsDataInSync] = useState(false)
+
+  const handlePayrollDataReady = useCallback((preparedPayroll: PayrollPrepared) => {
+    const currentEmployeeData = employeeDataRef.current
+    if (!currentEmployeeData?.showEmployees || !preparedPayroll.employeeCompensations) {
+      setIsDataInSync(false)
+      return
+    }
+
+    const employeeUuids = currentEmployeeData.showEmployees.map(e => e.uuid)
+    const preparedUuids = new Set(preparedPayroll.employeeCompensations.map(c => c.employeeUuid))
+    const inSync = employeeUuids.length > 0 && employeeUuids.every(uuid => preparedUuids.has(uuid))
 
-  const totalPages = Number(employeeData.httpMeta.response.headers.get('x-total-pages') ?? 1)
-  const totalCount = Number(employeeData.httpMeta.response.headers.get('x-total-count') ?? 0)
+    if (inSync) {
+      setDisplayedEmployees(currentEmployeeData.showEmployees)
+      setIsDataInSync(true)
+    } else {
+      setIsDataInSync(false)
+    }
+  }, [])
 
   const handleItemsPerPageChange = (newCount: PaginationItemsPerPage) => {
     setItemsPerPage(newCount)
@@ -92,19 +122,6 @@ export const Root = ({
     setCurrentPage(totalPages)
   }
 
-  const pagination = {
-    currentPage,
-    handleFirstPage,
-    handlePreviousPage,
-    handleNextPage,
-    handleLastPage,
-    handleItemsPerPageChange,
-    totalPages,
-    totalCount,
-    isFetching: isFetchingEmployeeData,
-    itemsPerPage,
-  }
-
   const { data: payrollData } = usePayrollsGetSuspense(
     {
       companyId,
@@ -122,14 +139,31 @@ export const Root = ({
     preparedPayroll,
     paySchedule,
     isLoading: isPrepareLoading,
+    isPaginating,
     handlePreparePayroll,
   } = usePreparedPayrollData({
     companyId,
     payrollId,
     employeeUuids,
-    sortBy: 'last_name', // sort alphanumeric by employee last_names to match employees GET
+    sortBy: 'last_name',
+    onDataReady: handlePayrollDataReady,
   })
 
+  const isPaginationFetching = isFetchingEmployeeData || isPaginating || !isDataInSync
+
+  const pagination = {
+    currentPage,
+    handleFirstPage,
+    handlePreviousPage,
+    handleNextPage,
+    handleLastPage,
+    handleItemsPerPageChange,
+    totalPages,
+    totalCount,
+    isFetching: isPaginationFetching,
+    itemsPerPage,
+  }
+
   const onCalculatePayroll = async () => {
     // Clear any existing blockers before attempting calculation
     setPayrollBlockers([])
@@ -241,6 +275,10 @@ export const Root = ({
       }
     : undefined
 
+  if (!employeeData) {
+    return <Loading />
+  }
+
   return (
     <PayrollConfigurationPresentation
       onCalculatePayroll={onCalculatePayroll}
@@ -248,7 +286,7 @@ export const Root = ({
       onToggleExclude={onToggleExclude}
       onViewBlockers={onViewBlockers}
       employeeCompensations={preparedPayroll?.employeeCompensations || []}
-      employeeDetails={employeeData.showEmployees || []}
+      employeeDetails={displayedEmployees}
       payPeriod={preparedPayroll?.payPeriod}
       paySchedule={paySchedule}
       isOffCycle={preparedPayroll?.offCycle}
diff --git a/src/components/Payroll/usePreparedPayrollData.ts b/src/components/Payroll/usePreparedPayrollData.ts
index f1325d40..fdf70601 100644
--- a/src/components/Payroll/usePreparedPayrollData.ts
+++ b/src/components/Payroll/usePreparedPayrollData.ts
@@ -1,4 +1,4 @@
-import { useState, useEffect, useCallback } from 'react'
+import { useState, useEffect, useCallback, useRef, useMemo } from 'react'
 import { usePayrollsPrepareMutation } from '@gusto/embedded-api/react-query/payrollsPrepare'
 import { usePaySchedulesGet } from '@gusto/embedded-api/react-query/paySchedulesGet'
 import type { PayrollPrepared } from '@gusto/embedded-api/models/components/payrollprepared'
@@ -11,6 +11,7 @@ interface UsePreparedPayrollDataParams {
   payrollId: string
   employeeUuids?: string[]
   sortBy?: PayrollPrepareSortBy
+  onDataReady?: (preparedPayroll: PayrollPrepared) => void
 }
 
 interface UsePreparedPayrollDataReturn {
@@ -18,6 +19,8 @@ interface UsePreparedPayrollDataReturn {
   preparedPayroll: PayrollPrepared | undefined
   paySchedule: PayScheduleObject | undefined
   isLoading: boolean
+  isPaginating: boolean
+  hasInitialData: boolean
 }
 
 export const usePreparedPayrollData = ({
@@ -25,12 +28,16 @@ export const usePreparedPayrollData = ({
   payrollId,
   employeeUuids,
   sortBy,
+  onDataReady,
 }: UsePreparedPayrollDataParams): UsePreparedPayrollDataReturn => {
   const { mutateAsync: preparePayroll, isPending: isPreparePayrollPending } =
     usePayrollsPrepareMutation()
   const [preparedPayroll, setPreparedPayroll] = useState<PayrollPrepared | undefined>()
+  const hasInitialDataRef = useRef(false)
   const { baseSubmitHandler } = useBase()
 
+  const employeeUuidsKey = useMemo(() => employeeUuids?.join(',') ?? '', [employeeUuids])
+
   const { data: payScheduleData, isLoading: isPayScheduleLoading } = usePaySchedulesGet(
     {
       companyId,
@@ -54,19 +61,35 @@ export const usePreparedPayrollData = ({
         },
       })
       setPreparedPayroll(result.payrollPrepared)
+      if (result.payrollPrepared) {
+        hasInitialDataRef.current = true
+        onDataReady?.(result.payrollPrepared)
+      }
     })
-  }, [companyId, payrollId, preparePayroll, employeeUuids, baseSubmitHandler])
+  }, [
+    companyId,
+    payrollId,
+    preparePayroll,
+    employeeUuidsKey,
+    baseSubmitHandler,
+    sortBy,
+    onDataReady,
+  ])
 
   useEffect(() => {
     void handlePreparePayroll()
   }, [handlePreparePayroll])
 
-  const isLoading = isPreparePayrollPending || isPayScheduleLoading
+  const isInitialLoading = isPreparePayrollPending && !hasInitialDataRef.current
+  const isPaginating = isPreparePayrollPending && hasInitialDataRef.current
+  const isLoading = isInitialLoading || isPayScheduleLoading
 
   return {
     handlePreparePayroll,
     preparedPayroll,
     paySchedule: payScheduleData?.payScheduleObject,
     isLoading,
+    isPaginating,
+    hasInitialData: hasInitialDataRef.current,
   }
 }