Good news! After the unusually cold and stormy winter we’ve had this year, the economy finally seems to be thawing with U.S. employment statistics trending upward. Increases were recorded in the number of employees and hours worked and in pay rates. For small business owners, especially those in industries with several hourly workers, job growth can signal new business demands as well as challenges in handling increased payroll responsibilities.
According to the Bureau of Labor Statistics, businesses added 192,000 jobs in March. The strongest gains were seen in professional and business services, health care, construction, and food and beverage-related businesses. Additionally, the average workweek rose to 34.5 hours, a 0.2 hour gain compared to a prior 3-month net decline. Average hourly earnings also increased by 49 cents over the past year.
If you’re like many small business owners, you probably equate growth with business success. However, if you’re not prepared to handle that growth and the demands it requires on your business – especially when it comes to additional payroll processing, recordkeeping, and knowledge in labor regulations and tax laws – growth may signal problems for your business.
When many owners start their small businesses, they may try to handle payroll on their own if they only have a few employees. But once the business starts to grow and more employees are brought on board, it becomes harder for business owners to manage all aspects of their business and keep up with payroll.
As new employees are hired and older employees are promoted or given raises, hourly wage rates can change frequently. And staying on top of those changes can be a real challenge, especially when rate changes occur within pay periods. Plus, rate changes also mean changes to withholding amounts.
If you’re still trying to hand calculate FICA and federal, state and local taxes as well as any deductions each employee may have, it can be a huge headache. In addition, the possibility for errors can be high, leading to disgruntled employees or worse – heavy fines and penalties. According to the Internal Revenue Service, about 33% of employers make payroll mistakes that end up costing billions of dollars in penalties each year.
Therefore, processing your company’s payroll is one area of your growing business that you can’t afford to get wrong. By hiring a reputable payroll provider, like The Payroll Department in Brownsburg, IN, you can ensure your company’s payroll will be handled accurately by knowledgeable payroll experts – saving you time and money. Not only will you gain peace of mind, but you’ll also have more time to focus on growing your business. So contact The Payroll Department at 317-852-2568 for more information on their payroll services today.
– Ariane of The Payroll Department Blog Team