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

There are several key benefits that come with using a payroll services provider. One of the most significant advantages is the time saved by outsourcing payroll tasks to a dedicated team of professionals. Payroll management can be an incredibly time-consuming and complex process, especially for businesses with multiple employees or operating in multiple locations. By hiring a payroll services provider, businesses can free up valuable time that can be better spent on other important aspects of the business.

Additionally, outsourcing payroll can help businesses avoid costly mistakes and compliance issues. Payroll taxes and regulations are constantly changing, and it can be challenging for business owners to stay up-to-date on the latest requirements. Payroll services providers have expert knowledge of tax laws and regulations, ensuring that payroll processes are accurate and compliant with all relevant laws.

Another benefit of using a payroll services provider is increased data security and confidentiality. Payroll data contains sensitive information about employees, such as social security numbers and salary details. By outsourcing payroll, businesses can protect this information from security breaches and ensure that it is handled securely and confidentially.

Payroll services providers also offer additional services beyond just processing payroll. Many providers offer options for direct deposit, automated tax payments, and detailed reporting features. These additional services can streamline payroll processes even further, saving businesses time and ensuring accuracy in all payroll-related tasks.

Despite the many benefits of payroll services providers, some business owners may still question whether they are worth the cost. It is important to weigh the costs and benefits of outsourcing payroll for your specific business needs. While there is a cost associated with hiring a payroll services provider, the time and resources saved by outsourcing this crucial task can often outweigh the investment.

Business owners should also consider the potential risks of managing payroll in-house. Mistakes in payroll processing can be costly and time-consuming to correct, and can even result in legal issues if not handled correctly. By outsourcing payroll to a professional provider, businesses can mitigate these risks and ensure that payroll processes are accurate and compliant.

In conclusion, while some business owners may question the value of hiring a payroll services provider, the benefits of outsourcing payroll far outweigh the costs. From saving time on payroll processing to ensuring accuracy and compliance with tax laws, payroll services providers offer a range of benefits that can help businesses of all sizes operate more efficiently and effectively. If you are considering outsourcing payroll for your business, it is worth exploring the options available and finding a provider that meets your specific needs.

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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