5 Small Business Payroll Trends for 2015
Payroll used to be a stressful, time-consuming task for small-business owners. Today, innovative technology and new payroll services have given business owners far more flexibility and control over how they manage and pay their workforce.
Looking ahead to 2015, how small businesses handle their payroll administration is likely to undergo even greater change. Here's a look at five small-business payroll trends likely to gain traction in the coming year:
As more small-business owners and human resource managers recognize the convenience of managing payroll and other administrative tasks on the go, the use of mobile payroll solutions will continue to increase in popularity. A recent survey by SurePayroll found that 80 percent of SurePayroll customers with one to 10 employees are already using mobile technology in their work — and that number is only expected to grow.
2. "End-to-End" HR
Companies used to have distinct tools to handle various administrative HR functions, including separate processes for payroll, recruiting, and benefits. However, there's growing awareness that integrating various HR processes into one system can help companies become more strategic and efficient, as well as save time and better control labor costs. Look for these kinds of platforms to increase in popularity.
3. More Empowered — and Engaged — Employees
Employees are playing a more active role in the payroll process — a trend sure to continue in the coming year as companies begin using their payroll platform as an employee engagement tool. Payroll solutions now have self-service portals for employees to set up profiles, change their payroll withholdings, and decide if they want to be paid by direct deposit, check, or debit card.
4. (Even) Greater Compliance Complexities
While technology makes payroll easier on employers, a growing number of government regulations are making it more complex. The Affordable Care Act, for example, will soon require companies with 50 or more employees (including full-time equivalents) to report more information to the federal government and withhold more tax from certain high-income employees.
With the U.S. economy on the mend and government regulations growing in complexity, more small businesses may consider outsourcing their payroll. According to a 2013 Bloomberg BNA report, an increasing number of businesses have been outsourcing payroll as a way to save money and time — a trend that is expected to keep growing through 2015. Beyond cost savings, small-business owners that outsource payroll may discover additional benefits, including fewer errors, more time to focus on strategic tasks, and easier employee access to payroll information.
As a new year begins, it's the perfect time for companies to evaluate ways to improve their payroll function. If you’re among the businesses looking for ways to streamline payroll for the New Year, take advantage of our library of payroll and taxes resources.