Payroll Services Providers Statistics


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Payroll Services Providers Statistics 2023: Facts about Payroll Services Providers outlines the context of what’s happening in the tech world.

LLCBuddy editorial team did hours of research, collected all important statistics on Payroll Services Providers, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

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Top Payroll Services Providers Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 27 Payroll Services Providers Statistics on this page 🙂

Payroll Services Providers “Latest” Statistics

  • Over 95% of U.S. occupations are covered by the quarterly census of employment and wages, which offers a quarterly census of paid employment reported by companies.[1]
  • On the fee for your taxable service, charge your client the 6.25% state tax as well as any municipal taxes.[2]
  • If taxable services make up more than 5% of your charge unless you individually display the costs for taxable and nontaxable services, your entire charge is taxable.[2]
  • 10% to 30% of businesses will refer to their staff as independent contractors in order to save money on taxes.[3]
  • A poll of more than 20,000 people in the U.S. found that 63% of them would find it difficult to pay their expenses if their income arrived later than expected.[3]
  • Nearly 1,000 small company owners participated in a poll, and 45% reported that third parties prepared their payroll.[3]
  • While the total failure rate for ACH transactions is about 3%, it may be up to three times higher for neo-banks because of, among other things, their incapacity to handle fraud and return codes.[4]
  • Based on statistics from Cornerstone Advisors, 43% of U.S. BNPL clients have made late payments, and 2/3 of them have done so more than once.[4]
  • Medicare costs employees 1.45% of their gross income, while social security costs them another 6.2%.[5]
  • A firm may be entitled to a credit of up to 5.4% if it is also liable to state unemployment tax, bringing the FUTA tax rate down to 0.6%.[5]
  • Currently, there are seven separate tax bands for the federal income tax, with marginal rates ranging from 10% to 37%.[5]
  • The legislation mandates that companies contribute 6% of an employee’s first $7,000 in yearly wages, known as the FUTA wage base.[5]
  • The U.S. business growth for HR & payroll software will be 11% in 2023.[6]
  • 2023 marks a 9.3% growth from 2022 in the number of HR & Payroll Software companies operating in the United States, which now total 555.[6]
  • Almost 25% of employees completed new W-4 forms during 2020 per the APA’s getting paid in America survey. Most of those workers did so because they wanted to change their tax withholding or their financial circumstances changed.[7]
  • According to a different IBISWorld forecast, U.S. payroll and HR software sales would increase by 8.7% to $10.8 billion in 2020.[7]
  • As of December 2019, 31.7 million firms in the U.S. have less than 500 workers, accounting for 99.9% of all enterprises.[7]
  • Businesses are required to pay 50% of employee Social Security and Medicare taxes but not contractor taxes.[7]
  • N&N was able to reduce the time it took to handle payroll by 84% by transitioning from QuickBooks for accounting and a separate payroll system to NetSuite integrated solution.[7]
  • Employment decreased on average by 27% for businesses with less than 500 workers and by roughly 28% for businesses with fewer than 50 employees.[7]
  • According to JPMorgan Chase, more than 60% of small firms have changed payroll cash outflows as a result of fluctuations in employment.[7]
  • In a poll conducted by the American Payroll Association, over 70% of workers responded that delaying their paychecks by a week would make it difficult for them to fulfill their financial responsibilities.[7]
  • 93% of U.S. workers get their paychecks by direct deposit.[7]
  • In contrast to the 5.6 million net new employment generated by major enterprises between 2000 and 2019, 10.5 million new jobs were created by small businesses, accounting for 65% of job growth.[7]
  • Employing small enterprises U.S. labor force of 60.6 million, 47.1% of the workforce in the private sector.[7]
  • According to the Economic Policy Institute, state-level research reveals that 10% to 20% of companies mistakenly categorize employees as independent contractors.[7]
  • 93% of workers claimed they always get their paychecks on time, but just 60% are very positive that their paycheck deductions and net pay are right, while another 27% are only somewhat certain.[7]

Also Read

How Useful is Payroll Services Providers

One of the primary benefits of partnering with a payroll services provider is the time and money that can be saved. Processing payroll can be a time-consuming task that requires meticulous attention to detail. By outsourcing this responsibility to a dedicated provider, companies can free up valuable resources that can be better spent on other critical aspects of their business.

Furthermore, payroll services providers have the expertise and experience to ensure that payroll tasks are completed accurately and efficiently. It can be challenging for companies to keep up with the constantly changing regulations and laws surrounding payroll and taxes. By working with a provider that specializes in these areas, businesses can rest assured that their payroll processes are in compliance and that they are avoiding costly mistakes.

Another key benefit of using a payroll services provider is the level of technical support and customer service that they offer. Businesses that handle payroll internally may find themselves struggling to solve complex payroll issues or facing challenges with their payroll software. In contrast, payroll services providers have dedicated staff who are trained to handle any payroll-related questions or concerns that may arise, providing businesses with peace of mind and reliable support.

Furthermore, outsourcing payroll services can also help businesses enhance their security measures. Payroll data is sensitive information that must be handled with care to avoid falling into the wrong hands. Payroll services providers invest in top security protocols to protect their clients’ data from cyberthreats and other risks, providing an added layer of protection for businesses and their employees.

Additionally, partnering with a payroll services provider can offer businesses access to advanced reporting and analytics tools that can provide valuable insights into their workforce and payroll performance. These tools can help businesses identify trends, track labor costs, and make informed decisions about their payroll processes. By leveraging this data-driven approach, businesses can optimize their payroll operations and drive better financial outcomes.

In conclusion, payroll services providers offer a range of benefits that can help businesses streamline their operations, reduce costs, and improve efficiency. With their expertise, technical support, and advanced tools, these providers serve as valuable partners for companies looking to enhance their payroll processes and focus on core business activities.

Reference

  1. adpemploymentreport – https://adpemploymentreport.com/
  2. texas – https://comptroller.texas.gov/taxes/publications/94-127.php
  3. fitsmallbusiness – https://fitsmallbusiness.com/payroll-statistics/
  4. fintechtakes – https://newsletter.fintechtakes.com/p/payroll-fintech
  5. adp – https://www.adp.com/resources/articles-and-insights/articles/h/how-do-you-navigate-payroll-compliance-rules.aspx
  6. ibisworld – https://www.ibisworld.com/industry-statistics/number-of-businesses/hr-payroll-software-united-states/
  7. netsuite – https://www.netsuite.com/portal/resource/articles/financial-management/small-business-payroll-statistics.shtml

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