As a small business owner, you are aware of the importance of having employees on your team. However, equally as important is understanding how payroll factors into running your business.
Payroll is an essential component of running any type of business, no matter what size. To help shed some light on the subject, we’re here to share some in-depth small business payroll statistics on topics like employee wages, hours worked, and tax compliance.
Prepare to dive deep into everything there is to know about payroll for small businesses.
Small Business Payroll Statistics
- 33% of small businesses pay weekly, while 42% pay bi-weekly.
- Approximately 40% of small businesses spend more than 80 hours per year on payroll tax compliance.
- 25% of small businesses were fined for payroll tax mistakes.
- Some 20% of small businesses outsource their payroll processing.
- 18% of small businesses utilize a payroll software
- Small businesses spend $2,000 annually on payroll processing.
- 60% of small businesses handle payroll in-house.
- 20% of small businesses use a PEO for payroll processing.
- 70% of small businesses under 20 employees outsource payroll.
- 30% of small businesses with less than 20 employees process payroll in-house.
- A notable 40% of small business owners personally manage their payroll.
- A considerable 60% of small business owners allocate at least 5 hours monthly to handle payroll tasks.
- 1 in 3 small business owners admits to having made payroll errors.
- 1 in 5 small business owners has encountered penalties for late payroll tax payments.