5 Top Payroll Frustrations for SMBs
Last update at December 5, 2023
5 Top Frustrations SMBs Experience With Payroll
According to a survey by the National Federation of Independent Business (NFIB), 70% of small business owners feel payroll taxes are a significant to moderate burden, while 77% report income taxes as an additional burden. Added to this, about 54% of businesses think their payroll processes can be improved in some way. Here are five top frustrations that small and medium-sized businesses (SMBs) experience with payroll – and how Gusto can provide payroll services that will reduce them.
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Payroll mistakes and oversights
In today’s modern business world, a company can have several employees in different designations. For instance, there can be a core team of permanent in-house workers, temporary staff (such as for maternity contracts relief or seasonal staff), and freelancers who work on a gig basis. This diversity can lead to considerable payroll frustrations when a business owner misclassifies workers or miscalculates overtime wages, or when other inaccuracies slip in. In turn, staff can also get frustrated when they have to deal with inconsistencies related to payments and salary benefits.
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Processes that are time-consuming and complex
According to Software Advice, approximately 60% of small businesses manage payroll on their own. For many SMB owners, this can add an extra burden as they need to juggle administration that takes time and focus away from other key business areas. Not having dedicated payroll departments, staff or even payroll software provider solutions means business owners will be stretched thin and errors can easily slip in when payments are done. Gusto payroll can solve all of that.
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Non-compliance with tax laws and labor laws
When payroll processes are not handled correctly, business owners could face penalties and fines that could negatively impact their business finances. Not having the knowledge or access to resources to correctly register employees (especially if teams are globally based or in different states) means an employer can be at a loss to stay compliant with the law.
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Not having integration with accounting systems
When SMBs do not have data easily synced between different online systems, errors could come in when transferring information manually from point A to point B. Data could be compromised, and entered incorrectly, leading to inconsistencies that could impact everything from tax filing to salary and bonus payments.
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No backup systems
Without backup software or systems in place to protect data, your information can be at risk in case of hardware damage or other events where valuable information could be lost. Businesses not using cloud-based systems, for instance, could be at risk of their data being lost when disaster strikes – and needing to revisit every entry to ensure they have the right information on record. With Gusto, you have access to all the data from anywhere.
How Gusto Makes A Difference For SMB Owners
What makes Gusto a game-changer for payroll services, is that it can eliminate common SMB frustrations thanks to an easy-to-use platform. Gusto payroll service can assist with syncing data, automation, tax registering for all 50 states, calculating working hours and holidays, as well as other integrations. If you need business payroll services that reduce frustrations, streamline processes, and enhance productivity, Gusto is a top choice for making payroll easy. Visit their website today to find out how this online payroll solutions provider has become a top partner for several SMBs.
