diff --git a/src/components/Company/PaySchedule/shared/usePayScheduleForm/usePayScheduleForm.test.tsx b/src/components/Company/PaySchedule/shared/usePayScheduleForm/usePayScheduleForm.test.tsx
index 171ec2ec7..074b2a3f8 100644
--- a/src/components/Company/PaySchedule/shared/usePayScheduleForm/usePayScheduleForm.test.tsx
+++ b/src/components/Company/PaySchedule/shared/usePayScheduleForm/usePayScheduleForm.test.tsx
@@ -351,6 +351,130 @@ describe('usePayScheduleForm', () => {
       expect(submitResult).toEqual(expect.objectContaining({ mode: 'update' }))
     })
   })
+
+  describe('clearing server-side errors on edit (SDK-923)', () => {
+    it('clears a custom (server-side) error on a date field when the user edits it', async () => {
+      const { result } = renderHook(() => usePayScheduleForm({ companyId: 'company-1' }), {
+        wrapper: GustoTestProvider,
+      })
+
+      await waitFor(() => {
+        expect(result.current.isLoading).toBe(false)
+      })
+      assertReady(result.current)
+      const { formMethods } = result.current.form.hookFormInternals
+
+      act(() => {
+        formMethods.setError('anchorPayDate', {
+          type: 'custom',
+          message: 'Pay date must be after start date',
+        })
+      })
+
+      await waitFor(() => {
+        expect(formMethods.getFieldState('anchorPayDate').error).toMatchObject({
+          type: 'custom',
+        })
+      })
+
+      act(() => {
+        formMethods.setValue('anchorPayDate', '2026-07-15', { shouldDirty: true })
+      })
+
+      await waitFor(() => {
+        expect(formMethods.getFieldState('anchorPayDate').error).toBeUndefined()
+      })
+    })
+
+    it('clears a custom error on the anchorEndOfPayPeriod date field when the user edits it', async () => {
+      const { result } = renderHook(() => usePayScheduleForm({ companyId: 'company-1' }), {
+        wrapper: GustoTestProvider,
+      })
+
+      await waitFor(() => {
+        expect(result.current.isLoading).toBe(false)
+      })
+      assertReady(result.current)
+      const { formMethods } = result.current.form.hookFormInternals
+
+      act(() => {
+        formMethods.setError('anchorEndOfPayPeriod', {
+          type: 'custom',
+          message: 'End of pay period invalid',
+        })
+      })
+
+      await waitFor(() => {
+        expect(formMethods.getFieldState('anchorEndOfPayPeriod').error).toMatchObject({
+          type: 'custom',
+        })
+      })
+
+      act(() => {
+        formMethods.setValue('anchorEndOfPayPeriod', '2026-07-22', { shouldDirty: true })
+      })
+
+      await waitFor(() => {
+        expect(formMethods.getFieldState('anchorEndOfPayPeriod').error).toBeUndefined()
+      })
+    })
+
+    it('does not clear non-custom (client-side) validation errors on edit', async () => {
+      const { result } = renderHook(() => usePayScheduleForm({ companyId: 'company-1' }), {
+        wrapper: GustoTestProvider,
+      })
+
+      await waitFor(() => {
+        expect(result.current.isLoading).toBe(false)
+      })
+      assertReady(result.current)
+      const { formMethods } = result.current.form.hookFormInternals
+
+      act(() => {
+        formMethods.setError('anchorPayDate', { type: 'required', message: 'Required' })
+      })
+
+      await waitFor(() => {
+        expect(formMethods.getFieldState('anchorPayDate').error?.type).toBe('required')
+      })
+
+      act(() => {
+        formMethods.setValue('anchorPayDate', '2026-07-15', { shouldDirty: true })
+      })
+
+      // Subscribe handler is scoped to type: 'custom' — RHF's normal validation
+      // loop owns client-side errors.
+      expect(formMethods.getFieldState('anchorPayDate').error?.type).toBe('required')
+    })
+
+    it('does not clear errors on non-date fields when they change', async () => {
+      const { result } = renderHook(() => usePayScheduleForm({ companyId: 'company-1' }), {
+        wrapper: GustoTestProvider,
+      })
+
+      await waitFor(() => {
+        expect(result.current.isLoading).toBe(false)
+      })
+      assertReady(result.current)
+      const { formMethods } = result.current.form.hookFormInternals
+
+      act(() => {
+        formMethods.setError('customName', { type: 'custom', message: 'Name taken' })
+      })
+
+      await waitFor(() => {
+        expect(formMethods.getFieldState('customName').error?.type).toBe('custom')
+      })
+
+      act(() => {
+        formMethods.setValue('customName', 'Updated', { shouldDirty: true })
+      })
+
+      // Subscribe is scoped to the two date fields; editing customName must
+      // not clear its custom error.
+      expect(formMethods.getFieldState('customName').error?.type).toBe('custom')
+    })
+  })
 })
 
 // ── Schema-level tests ──────────────────────────────────────────────────
diff --git a/src/components/Company/PaySchedule/shared/usePayScheduleForm/usePayScheduleForm.tsx b/src/components/Company/PaySchedule/shared/usePayScheduleForm/usePayScheduleForm.tsx
index 05c8b4e57..80d96ffb9 100644
--- a/src/components/Company/PaySchedule/shared/usePayScheduleForm/usePayScheduleForm.tsx
+++ b/src/components/Company/PaySchedule/shared/usePayScheduleForm/usePayScheduleForm.tsx
@@ -346,6 +346,27 @@ export function usePayScheduleForm({
   const queries = payScheduleId ? [payScheduleQuery, paymentConfigsQuery] : [paymentConfigsQuery]
   const errorHandling = composeErrorHandler(queries, { submitError, setSubmitError })
 
+  // SDK-923: server-side validation errors (mirrored by SDKFormProvider as
+  // `type: 'custom'`) on the date fields block resubmission until refresh.
+  // Subscribe ONLY to the two date fields that can receive server errors and
+  // clear them on edit. Clearing the upstream submitError too stops the
+  // provider's sync effect from re-applying the error on the next render.
+  useEffect(() => {
+    const dateFields = ['anchorPayDate', 'anchorEndOfPayPeriod'] as const
+    const unsubscribe = formMethods.subscribe({
+      name: dateFields,
+      formState: { values: true },
+      callback: ({ name }) => {
+        if (!name || !(dateFields as readonly string[]).includes(name)) return
+        const fieldName = name as (typeof dateFields)[number]
+        if (formMethods.getFieldState(fieldName).error?.type !== 'custom') return
+        formMethods.clearErrors(fieldName)
+        setSubmitError(null)
+      },
+    })
+    return unsubscribe
+  }, [formMethods, setSubmitError])
+
   const showCustomTwicePerMonth = watchedFrequency === 'Twice per month'
   const showDay1 =
     watchedFrequency === 'Monthly' ||