Is it reasonable to withhold a raise to an admin who makes a lot of mistakes?

Of course.
What matters here is, is this decision in line with your overall philosophy for how you choose to pay people? How you pay/reward team members financially is a philosophical decision as much as a financial one. Who do you want to give raises to on an ongoing basis? What about bonuses? How do you want your business to attach financial recognition to performance? You really can decide to do whatever you want here, but my recommendation is that you are consistent. So, if this person’s results are not what they should be, why would you give her a raise? Or … why wouldn’t you give her a raise? Are raises just automatic in your business or are they performance based? Once you have your philosophy more clear, you can align how you compensate to that philosophy.
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