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 🙂

Are you planning to form an LLC? Maybe for educational purposes, business research, or personal curiosity, whatever the reason is – it’s always a good idea to gather more information about tech topics like this.

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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

First and foremost, payroll services providers offer expertise and experience in payroll processing. They stay up-to-date with changing laws and regulations, ensuring that businesses remain compliant with all tax laws and labor regulations. This can be a huge burden lifted off the shoulders of business owners, who can rest assured that their payroll is in capable hands.

Furthermore, payroll services providers can help businesses save time and money. By outsourcing their payroll functions, businesses can free up valuable time to focus on more strategic tasks, such as business development and customer service. In addition, outsourcing payroll can often be more cost-effective than hiring an in-house payroll staff, especially for smaller businesses with limited resources.

Another key advantage of using payroll services providers is that they usually offer additional services beyond just processing payroll. Many providers offer tax filing services, ensuring that businesses are in compliance with all tax laws and deadlines. Some providers also offer HR services, such as employee onboarding, time tracking, and benefits administration, further reducing the administrative burden on business owners.

Moreover, payroll services providers often provide businesses with access to cutting-edge technology and software that can streamline their payroll processes. This can include features such as direct deposit, online payroll portals, and mobile apps that make it easy for employees to access their pay stubs and other important documents. By leveraging these technologies, businesses can improve accuracy, efficiency, and transparency in their payroll operations.

In conclusion, payroll services providers can be highly useful for businesses of all sizes. By outsourcing payroll functions to a trusted provider, businesses can benefit from expertise, cost savings, time savings, and access to advanced technologies. This can allow business owners to focus on their core business objectives, rather than getting bogged down in administrative tasks. However, it is important for businesses to thoroughly research and vet potential providers before making a decision, to ensure that they are choosing a provider that meets their specific needs and has a proven track record of reliability and customer satisfaction.

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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