Small business payroll software supports company growth
August 08, 2013
As small businesses grow and boost hiring, they need payroll technology to manage additional needs. The economy is improving, which means companies are adding new staff. However, U.S. payroll legislation continues to change, and it can be challenging for small-business owners to comply with new regulations as well as fulfill all their other responsibilities.
Small-business employment is finally returning to a pre-recession level after months of slow growth, Bloomberg reported. Companies with fewer than 50 employees are experiencing a great deal of expansion, and businesses with 10 workers or less are hiring at the fastest rate since December 2007. Small businesses with fewer than 50 employees accounted for 42 percent of all U.S. employment in July, based on ADP statistics. In particular, companies that offer innovative products and services are experiencing explosive growth and are expected to continue to do so in the next five to 10 years. Not only did the company size matter in regards to hiring intentions, but newer businesses were also expanding at a greater pace.
Big businesses were hiring at a much slower rate than their smaller counterparts in July, according to Businessweek. Improvements in the housing market and easier access to capital have allowed small-business owners to make investments in their companies to facilitate growth. Because small businesses have fewer resources, they are more cautious in their hiring and want to ensure they select the right employees.
Small businesses making investments
Many company owners were reluctant to hire due to pressure from the Affordable Care Act's employer mandate. Since the provision has been delayed until 2015, some small-business owners are taking the money they would have needed to use complying with the regulation and investing in hiring and new technology, according to The Wall Street Journal. Small businesses are hoping new investments will help them adapt to new changes and stay competitive.
Some companies are making critical hires they would have delayed for a few years because of uncertainty of how the employer mandate will impact business. Highly skilled workers have the potential to help the business gain new clients and grow revenue. Growth may slow when the law takes effect in January 2015, but for now, small-business owners are trying to take advantage of the delay. Small business payroll software can help companies manage the needs of a larger staff.