Why small businesses are suffering burnout.

In a recent WALMART small business survey, they mention that 70% of small businesses suffer burnout and being overwhelmed. The payroll process is a critical operation for businesses, but it can present several challenges.   Here are the top three pain points that often motivate companies to seek alternative payroll service providers: 

• Administrative Overwhelm: Managing payroll can be a time-consuming task, particularly for small businesses that may lack dedicated HR personnel. It involves tracking employee hours, calculating salaries, and managing benefits, taxes, and other deductions. These administrative burdens can detract from other important business functions. Example: A small business owner who switched to an automated payroll service reported saving several hours each week, allowing them to focus more on growing their business..

• Compliance Issues: Navigating the complex landscape of federal, state, and local tax laws can be challenging3. Mistakes can lead to penalties, audits, or legal action. Additionally, companies must adhere to labor laws, such as minimum wage regulations and overtime pay. Example: A company faced significant fines after incorrectly classifying employees as independent contractors. After switching to a payroll provider that offered compliance support, they were able to correct their classifications and avoid further penalties.

• Inaccurate Payments: Errors in payroll can lead to overpayments or underpayments, affecting both the company’s bottom line and employee satisfaction5. These errors can stem from manual data entry, miscalculations, or system glitches. Example: A company experienced a decrease in employee morale due to frequent payroll errors. After switching to a more reliable payroll service, they saw an improvement in employee satisfaction and trust.

Here are the simple yet effective solutions that a great Payroll provider will deliver on your behalf:

Offer easy-to-use software that automates as much of the payroll process as possible, with unlimited personal support

Provide up-to-date information and support for tax and labor law compliance.

Ensure accuracy in payments through robust systems and regular oversight.

APlus – Personal. Painless. Payroll