Most probably you are trying to restore a file that is not a Payroll Mate backup file.
Payroll Mate restores only Payroll Mate backup files (*.pmb) created from inside Payroll Mate through the “Tools > Backup Company Database” function.
For example if you try to use the Payroll Mate restore feature to restore a Payroll Mate database file (*.PMD) the restore will fail and show the error “Wrong Local Signature: 0x100”.