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 key benefits of using a payroll services provider is the expertise and knowledge they bring to the table. With a team of experienced professionals dedicated to managing payroll tasks, businesses can rest assured that their payroll is being handled accurately and efficiently. This can be particularly important for small businesses that may not have the resources or expertise to manage payroll in-house.

In addition to expertise, payroll services providers also offer businesses access to advanced payroll systems and technologies. These systems can automate many of the time-consuming tasks associated with payroll processing, such as calculating wages, deductions, and taxes. By leveraging these technologies, businesses can save time and reduce the risk of errors that can occur with manual payroll processing.

Another advantage of using a payroll services provider is the ability to stay compliant with ever-changing tax laws and regulations. Payroll providers stay up-to-date on the latest tax laws and regulations, ensuring that businesses remain in compliance with both federal and state requirements. This can help businesses avoid costly penalties and fines that can result from non-compliance.

Furthermore, outsourcing payroll to a third-party provider can free up valuable time and resources for businesses. By offloading payroll tasks to a provider, businesses can focus on their core operations and strategic initiatives without getting bogged down by administrative tasks. This can increase productivity and efficiency within the organization, leading to better overall performance and profitability.

While some may argue that the cost of outsourcing payroll to a provider is a deterrent, it is important to consider the long-term benefits that come with using a payroll services provider. The time and resources saved by outsourcing payroll can ultimately result in cost savings for businesses in the form of reduced administrative overhead and increased productivity.

In conclusion, payroll services providers offer businesses a valuable solution to streamline their payroll processes and alleviate administrative burdens. From expertise and advanced technologies to ensuring compliance with tax laws and regulations, outsourcing payroll can provide businesses with a range of benefits that can ultimately improve overall performance and profitability. For businesses looking to simplify their payroll processes and focus on core operations, leveraging the expertise of a payroll services provider may be a wise decision.

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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