{"id":15179,"date":"2024-03-29T13:38:47","date_gmt":"2024-03-29T13:38:47","guid":{"rendered":"https:\/\/jobera.com\/?p=15179"},"modified":"2024-03-29T13:38:47","modified_gmt":"2024-03-29T13:38:47","slug":"payroll-statistics","status":"publish","type":"post","link":"https:\/\/jobera.com\/resources\/payroll-statistics\/","title":{"rendered":"60+ Payroll Statistics &amp; Facts You Need To Know [2026]"},"content":{"rendered":"\n<p><em>Are you still using spreadsheets to manage payroll?<\/em><\/p>\n\n\n\n<p><strong>More than 34%<\/strong> of business owners still use spreadsheets to manage their payroll manually.<\/p>\n\n\n\n<p><em>Manual management can be time-consuming and lead to errors, right?<\/em><\/p>\n\n\n\n<p><strong>Nearly $7 billion<\/strong> in <strong>penalties <\/strong>are collected from the company for payroll errors.<\/p>\n\n\n\n<p><em>Payroll errors are costly!<\/em><\/p>\n\n\n\n<p><em>What&#8217;s the alternative?<\/em><\/p>\n\n\n\n<p>Payroll statistics suggest that <strong>80%<\/strong> of payroll processing costs can be reduced by automation.<\/p>\n\n\n\n<p><strong>62%<\/strong> of companies<strong> <\/strong>were <strong>using cloud payroll systems<\/strong> in 2023.<\/p>\n\n\n\n<p><strong>61%<\/strong> of companies<strong> outsource<\/strong> their payroll-related work from experts.&nbsp;<\/p>\n\n\n\n<p><em>Curious about the trends shaping payroll in 2024? <\/em>Let\u2019s delve into illuminating payroll statistics and understand how people are managing their payrolls.<\/p>\n\n\n\n<div class=\"wp-block-rank-math-toc-block\" id=\"rank-math-toc\"><nav><ul><li class=\"\"><a href=\"#top-payroll-statistics-editors-pick\">Top Payroll Statistics: Editor\u2019s Pick<\/a><\/li><li class=\"\"><a href=\"#general-payroll-statistics-facts\">General Payroll Statistics &amp; Facts<\/a><\/li><li class=\"\"><a href=\"#employee-payroll-statistics\">Employee Payroll Statistics<\/a><\/li><li class=\"\"><a href=\"#payroll-statistics-for-small-businesses\">Payroll Statistics for Small Businesses<\/a><\/li><li class=\"\"><a href=\"#payroll-outsourcing-statistics\">Payroll Outsourcing Statistics<\/a><\/li><li class=\"\"><a href=\"#payroll-errors-challenges\">Payroll Errors &amp; Challenges<\/a><\/li><li class=\"\"><a href=\"#automation-in-payroll-technology-statistics\">Automation in Payroll Technology Statistics<\/a><\/li><li class=\"\"><a href=\"#impacts-of-gig-economy-and-remote-work\">Impacts of Gig Economy And Remote Work<\/a><\/li><li class=\"\"><a href=\"#latest-labor-market-and-salary-statistics\">Latest Labor Market And Salary Statistics<\/a><\/li><li class=\"\"><a href=\"#fa-qs\">FAQs\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"top-payroll-statistics-editors-pick\">Top Payroll Statistics: Editor\u2019s Pick<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"427\" src=\"https:\/\/dev.jobera.com\/resources\/wp-content\/uploads\/2024\/03\/payroll-taxes.jpg-1024x427.png\" alt=\"Payroll taxes statistics\" class=\"wp-image-15185\" srcset=\"https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/payroll-taxes.jpg-1024x427.png 1024w, https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/payroll-taxes.jpg-300x125.png 300w, https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/payroll-taxes.jpg-768x320.png 768w, https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/payroll-taxes.jpg.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Nearly twice<\/strong> as many workers prefer higher wages over better <strong>health benefits<\/strong>.<sup> [3]<\/sup><\/li>\n\n\n\n<li><strong>63%<\/strong> of employees confirmed that they <strong>live paycheck to paycheck<\/strong>.<sup> [3]<\/sup><\/li>\n\n\n\n<li><strong>1 in 4 <\/strong>US workers live in a<strong> pay transparency state<\/strong>. <sup>[2]<\/sup><\/li>\n\n\n\n<li><strong>90% <\/strong>of workers confirmed they received their <strong>paychecks on time<\/strong>.<sup> [3]<\/sup><\/li>\n\n\n\n<li><strong>Only 25% <\/strong>of workers have updated their W-4.<sup> [4]<\/sup><\/li>\n\n\n\n<li><strong>22% <\/strong>of Europeans are paid <strong>incorrectly<\/strong>.<sup> [9]<\/sup><\/li>\n\n\n\n<li><strong>20% <\/strong>of<strong> gig workers<\/strong> complain that they have been paid too<strong> late<\/strong> and <strong>20%<\/strong> have been <strong>paid too little.<\/strong><sup> [10]<\/sup><\/li>\n\n\n\n<li>Combining automated timekeeping and payroll helps to reduce error rates by <strong>nearly 67%<\/strong>.<sup> [12]<\/sup><\/li>\n\n\n\n<li><strong>34% <\/strong>of companies reported that they do not outsource because they do not<strong> trust another company<\/strong> with money matters and outsourcing is costly. <sup>[20]<\/sup><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"general-payroll-statistics-facts\">General Payroll Statistics &amp; Facts<\/h2>\n\n\n\n<p><em>Wondering why you should care about payroll statistics?<\/em><\/p>\n\n\n\n<p>Because for <strong>59%<\/strong> of employees, payroll is the<strong> main factor<\/strong> determining job satisfaction. <sup>[27]<\/sup><\/p>\n\n\n\n<p>According to the <strong>US Bureau of Labor Statistics<\/strong>, typical pay frequencies are<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Time Period<\/strong><\/th><th><strong>Payroll Frequency<\/strong><\/th><\/tr><\/thead><tbody><tr><td>Weekly<\/td><td>52 payroll weeks<\/td><\/tr><tr><td>Biweekly<\/td><td>26 payroll periods<\/td><\/tr><tr><td>Semi-monthly<\/td><td>24 payroll periods<\/td><\/tr><tr><td>Monthly<\/td><td>12 payroll periods<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\"><em>Source: <a href=\"https:\/\/www.wtwco.com\/en-us\/news\/2022\/11\/us-pay-increases-to-hit-4-point-6-percent-in-2023-wtw-survey-finds\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">WTW<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<p><strong>Biweekly payroll <\/strong>is the most common payroll in the US. <sup>[30]<\/sup><\/p>\n\n\n\n<p>Women earn<strong> 17% less <\/strong>than men on average. <sup>[5]<\/sup><\/p>\n\n\n\n<p><em>How much should a company expand on payrolls?<\/em><\/p>\n\n\n\n<p>Payroll expenses between <strong>15 to 30%<\/strong> of<strong> gross revenue<\/strong> is the safest for most of the companies. <sup>[28]<\/sup><\/p>\n\n\n\n<p><strong>70%<\/strong> of small business owners reported <strong>payroll taxes<\/strong> are a burden for them. <sup>[8]<\/sup><\/p>\n\n\n\n<p>It is shocking to note that <strong>25% <\/strong>of<strong> small businesses<\/strong> still use pen and paper for tracking finances. And <strong>45%<\/strong> don\u2019t even have an <strong>in-house accountant<\/strong> or bookkeeper. <sup>[29]<\/sup><\/p>\n\n\n\n<p>Businesses can easily save <strong>20-30% annually<\/strong> by hiring freelancers over in-house employees. <sup>[29]<\/sup><\/p>\n\n\n\n<p><strong>1 in 4 <\/strong>US workers live in a<strong> pay transparency state<\/strong>. <sup>[2]<\/sup><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"employee-payroll-statistics\">Employee Payroll Statistics<\/h2>\n\n\n\n<p><em>What do employees think about the payroll systems of their employers?<\/em><\/p>\n\n\n\n<p><em>Are they satisfied? Are you satisfied with your pay?<\/em><\/p>\n\n\n\n<p><strong>About 4 million workers <\/strong>changed jobs monthly in the first quarter of 2022 for more pay. <sup>[1]<\/sup><\/p>\n\n\n\n<p>This resulted in an <strong>average turnover rate<\/strong> of <strong>30%<\/strong>. <sup>[1]&nbsp;<\/sup><\/p>\n\n\n\n<p><strong>63%<\/strong> of employees confirmed that they <strong>live paycheck to paycheck<\/strong>. <sup>[2]<\/sup><\/p>\n\n\n\n<p>According to the American Payroll Association, <strong>93%<\/strong> of employees are <strong>paid<\/strong> through direct deposit. <sup>[3]<\/sup><\/p>\n\n\n\n<p><strong>90% <\/strong>of workers confirmed they received their <strong>paychecks on time<\/strong>. <sup>[3]<\/sup><\/p>\n\n\n\n<p><strong>Only 25% <\/strong>of workers have updated their W-4. <sup>[4]&nbsp;<\/sup><\/p>\n\n\n\n<p><em>Are you one of those who haven\u2019t updated yet?<\/em><\/p>\n\n\n\n<p><em>Update your W-4 as it saves you from paying inaccurate taxes. Make a note!<\/em><\/p>\n\n\n\n<p><strong>Nearly twice<\/strong> as many workers prefer higher wages over better <strong>health benefits<\/strong>. <sup>[3]<\/sup>&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"768\" src=\"https:\/\/dev.jobera.com\/resources\/wp-content\/uploads\/2024\/03\/higher-pay.jpg-1024x768.png\" alt=\"Payroll statistics- higher pay vs health benefits\" class=\"wp-image-15187\" srcset=\"https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/higher-pay.jpg-1024x768.png 1024w, https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/higher-pay.jpg-300x225.png 300w, https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/higher-pay.jpg-768x576.png 768w, https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/higher-pay.jpg.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><em>Source: <a href=\"https:\/\/info.americanpayroll.org\/pdfs\/npw\/2022_Getting_Paid_In_America_survey_results.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">American Payroll Association<\/a><\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"payroll-statistics-for-small-businesses\">Payroll Statistics for Small Businesses<\/h2>\n\n\n\n<p>Let\u2019s go through payroll statistics for small businesses in detail as small businesses employ<strong> 60.6 million <\/strong>US workers, which is about <strong>47.1% of the private-sector<\/strong> workforce. <sup>[7]<\/sup><\/p>\n\n\n\n<p><strong>93%<\/strong> of employees working in<strong> small businesses<\/strong> confirmed that their paychecks were on time. <sup>[5]<\/sup>&nbsp;<\/p>\n\n\n\n<p><strong>Only 60% of <\/strong>employees said, they are <strong>\u2018very certain\u2019<\/strong> that their paycheck deductions and net pay are accurate, while<strong> 27%<\/strong> said they are \u2018<strong>somewhat certain<\/strong>\u2019. <sup>[5]<\/sup><\/p>\n\n\n\n<p>According to JPMorgan Chase, <strong>more than 60% <\/strong>of small businesses experience fluctuating payroll cash outflows due to changes in employment. <sup>[6]<\/sup><\/p>\n\n\n\n<p><strong>Only half<\/strong> of small businesses have enough cash to continue operating for <strong>more than 15 days<\/strong> if revenue is disrupted. <sup>[6]<\/sup><\/p>\n\n\n\n<p>Companies with irregular cash flows are <strong>more than twice<\/strong> as likely to be forced to shut down permanently. <sup>[6]<\/sup><\/p>\n\n\n\n<p><strong>Over 61% <\/strong>of small companies suffer dynamic payroll cash outflows due to shifts in employment. <sup>[6]<\/sup><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"payroll-outsourcing-statistics\">Payroll Outsourcing Statistics<\/h2>\n\n\n\n<p>Companies outsource experts to handle their payrolls so that they can smoothly handle their work.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>61%<\/strong> of companies outsource their payroll-related work. <sup>[22]<\/sup><\/li>\n\n\n\n<li><strong>Over half<\/strong> of <strong>small businesses<\/strong> outsource individuals or firms to handle their payrolls. <sup>[21]<\/sup><\/li>\n\n\n\n<li><strong>15%<\/strong> of organizations with<strong> less than 2,500 employees<\/strong> confirmed that they fully outsource payroll. <sup>[23]<\/sup><\/li>\n\n\n\n<li><strong>34% <\/strong>of companies reported that they do not outsource because they do not<strong> trust another company<\/strong> with money matters and outsourcing is costly.&nbsp;<sup>[20]<\/sup><\/li>\n\n\n\n<li><strong>80%<\/strong> of organizations have one insourced <strong>payroll technology installed<\/strong>. <sup>[19]<\/sup><\/li>\n\n\n\n<li><strong>20%<\/strong> of companies have<strong> more than one<\/strong> payroll technology for outsourcing. <sup>[19]<\/sup><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"payroll-errors-challenges\">Payroll Errors &amp; Challenges<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"427\" src=\"https:\/\/dev.jobera.com\/resources\/wp-content\/uploads\/2024\/03\/us-payroll-errors.jpg-1024x427.png\" alt=\"US payroll errors statistics\" class=\"wp-image-15188\" srcset=\"https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/us-payroll-errors.jpg-1024x427.png 1024w, https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/us-payroll-errors.jpg-300x125.png 300w, https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/us-payroll-errors.jpg-768x320.png 768w, https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/us-payroll-errors.jpg.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><em>Can ignoring small payroll errors cause big losses? Absolutely yes!<\/em><\/p>\n\n\n\n<p><strong>Nearly $7 billion<\/strong> in <strong>penalties <\/strong>are collected from the company for payroll errors. <sup>[13]<\/sup>&nbsp;<\/p>\n\n\n\n<p><strong>One wrong digit<\/strong> in payroll calculation results in<strong> inaccurate paychecks <\/strong>and <strong>potential tax <\/strong>errors. <sup>[8]<\/sup><\/p>\n\n\n\n<p>Up to<strong> 30%<\/strong> of companies misclassify employees as independent contractors to save on taxes. But if caught or sued, these companies face back taxes, missed overtime pay, and fines. <sup>[8]<\/sup><\/p>\n\n\n\n<p>Organizations may take up to <strong>10 days<\/strong> to resolve a payroll error. <sup>[11]<\/sup><\/p>\n\n\n\n<p>Combining automated timekeeping and payroll helps to reduce error rates by <strong>nearly 67%<\/strong>. <sup>[12]<\/sup>&nbsp;<\/p>\n\n\n\n<p><strong>22% <\/strong>of Europeans are paid <strong>incorrectly<\/strong>. <sup>[9]<\/sup><\/p>\n\n\n\n<p><strong>About 80%<\/strong> of employees who are paid incorrectly identify the problems by themselves. <sup>[9]<\/sup><\/p>\n\n\n\n<p><strong>44%<\/strong> of employees might consider <strong>leaving <\/strong>their jobs if paid incorrectly. <sup>[9]<\/sup><\/p>\n\n\n\n<p><strong>49% <\/strong>of employees might start looking for a new job after experiencing<strong> only 2 problems<\/strong> with their paychecks. <sup>[9]<\/sup><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"automation-in-payroll-technology-statistics\">Automation in Payroll Technology Statistics<\/h2>\n\n\n\n<p><em>So, it&#8217;s crucial to avoid payroll errors. How do we do that?<\/em><\/p>\n\n\n\n<p><strong>Streamlining HR<\/strong> &amp; <strong>payroll processes <\/strong>with <strong>bookkeeping <\/strong>and <strong>tracking <\/strong>file systems is the widely accepted solution. <sup>[14]<\/sup><\/p>\n\n\n\n<p><em>But filling spreadsheets manually is boring, right?<\/em><\/p>\n\n\n\n<p><strong>Automation <\/strong>can reduce time-consuming and repetitive tasks in HR &amp; payroll departments. <sup>[15]<\/sup><\/p>\n\n\n\n<p>The HR software market is expected to reach<strong> 33.57 billion<\/strong> by<strong> 2028<\/strong>. <sup>[16]<\/sup><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"900\" src=\"https:\/\/dev.jobera.com\/resources\/wp-content\/uploads\/2024\/03\/automation-growth.jpg.png\" alt=\"Growth in automation by department\" class=\"wp-image-15189\" srcset=\"https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/automation-growth.jpg.png 800w, https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/automation-growth.jpg-267x300.png 267w, https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/automation-growth.jpg-768x864.png 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/figure>\n\n\n\n<p><em>Source: <a href=\"https:\/\/www.workato.com\/the-connector\/hr-automation-statistics\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Workato<\/a><\/em><\/p>\n\n\n\n<p>Let\u2019s look at Payroll Automation Statistics.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>More than 34%<\/strong> of business owners still use spreadsheets to manage their payroll manually. <sup>[17]<\/sup><\/li>\n\n\n\n<li><strong>Only 34.8%<\/strong> of companies used<strong> cloud payroll systems <\/strong>in <strong>2019. <\/strong><sup>[17]<\/sup><\/li>\n\n\n\n<li><strong>62%<\/strong> of companies will use cloud payroll systems in <strong>2023<\/strong>. <sup>[17]<\/sup><\/li>\n\n\n\n<li><strong>80%<\/strong> of payroll processing costs can be reduced by automation. <sup>[3]<\/sup><\/li>\n\n\n\n<li><strong>29%<\/strong> of businesses admitted to using a payroll system that is <strong>10 years old or older<\/strong>. <sup>[18]<\/sup><\/li>\n\n\n\n<li><strong>Around 83%<\/strong> of employers confirmed that they give their employees online access to a self-service portal with pay and benefits information. <sup>[3]<\/sup><\/li>\n\n\n\n<li>Automation around direct compensation confirmed making up to<strong> 47%<\/strong> of all<strong> benefits and payroll benefits automation<\/strong>. <sup>[16]<\/sup><\/li>\n<\/ol>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"427\" src=\"https:\/\/dev.jobera.com\/resources\/wp-content\/uploads\/2024\/03\/hr-software-market.jpg-1024x427.png\" alt=\"HR software market growth statistics\" class=\"wp-image-15190\" srcset=\"https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/hr-software-market.jpg-1024x427.png 1024w, https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/hr-software-market.jpg-300x125.png 300w, https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/hr-software-market.jpg-768x320.png 768w, https:\/\/jobera.com\/resources\/wp-content\/uploads\/2024\/03\/hr-software-market.jpg.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"impacts-of-gig-economy-and-remote-work\">Impacts of Gig Economy And Remote Work<\/h2>\n\n\n\n<p>There are <strong>57.3 million<\/strong> gig economy workers today. <sup>[26]<\/sup><\/p>\n\n\n\n<p><em>Remote work and the gig economy are immensely increasing in the present times and changing the landscape of the job market.&nbsp;<\/em><\/p>\n\n\n\n<p><em>What about the payroll of gig and remote workers?<\/em><\/p>\n\n\n\n<p><strong>20% <\/strong>of<strong> gig workers<\/strong> complain that they have been paid too<strong> late<\/strong> and <strong>20%<\/strong> have been <strong>paid too little.<\/strong> <sup>[10]<\/sup><\/p>\n\n\n\n<p><strong>62%<\/strong> of employees <strong>worked from home<\/strong> during the pandemic. After the pandemic is over, employees do not want to return to work. <sup>[21]<\/sup><\/p>\n\n\n\n<p><strong>58%<\/strong> of employees have the opportunity to <strong>work at home<\/strong> at least <strong>once a week<\/strong>, and 35% have the opportunity to work all week. <sup>[24]<\/sup><\/p>\n\n\n\n<p><strong>40%<\/strong> of gig workers are independent contractors and consultants who earn over<strong> $100k <\/strong>every year. <sup>[25]<\/sup><\/p>\n\n\n\n<p><strong>Agile cloud technologies<\/strong> have risen from 34.8% in 2019 to 62% in 2023. <sup>[22]<\/sup><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"latest-labor-market-and-salary-statistics\">Latest Labor Market And Salary Statistics<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li>The labor market has<strong> 3.5 million fewer jobs <\/strong>compared to the projected number in 2022. <sup>[27]<\/sup><\/li>\n\n\n\n<li><strong>62.2%<\/strong> of candidates are attracted to a job opportunity due to the salary aspect.<\/li>\n\n\n\n<li>The number of companies struggling to hire talent due to inflation has <strong>tripled (now 75%) <\/strong>since 2020. <sup>[30]<\/sup><\/li>\n\n\n\n<li><strong>48%<\/strong> of US employers are consistently<strong> increasing their budgets <\/strong>for salaries every year. <sup>[30]<\/sup><\/li>\n\n\n\n<li>To tackle the labor market problems<strong> 46% <\/strong>of companies are planning to improve the employee experience to address<strong> inflationary pressures<\/strong> and drive retention. <sup>[30]<\/sup><\/li>\n\n\n\n<li><strong>57%<\/strong> of employers have hired candidates <strong>higher <\/strong>in the relevant <strong>salary <\/strong>range. <sup>[30]<\/sup><\/li>\n\n\n\n<li><strong>90% <\/strong>of organizations considering salary increase adjustments are making<strong> 2 adjustments <\/strong>per year. <sup>[30]<\/sup><\/li>\n\n\n\n<li>The salary increase budgets in the<strong> US <\/strong>rose to an average of<strong> 4.1%&nbsp; in 2022,<\/strong> a 20-year high. <sup>[27]<\/sup><\/li>\n<\/ol>\n\n\n\n<div class=\"wp-block-columns has-background is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\" style=\"background-color:#fff9ed\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p><strong>If you found this article interesting, you might enjoy these too:<\/strong><\/p>\n\n\n<p>[related_posts_by_tax taxonomies=&#8221;category,post_tag&#8221; posts_per_page=&#8221;5&#8243; orderby=&#8221;post_modified&#8221; title=&#8221;&#8221;]<\/p>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"fa-qs\">FAQs&nbsp;<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"what-is-the-most-common-pay-frequency-in-the-us\">What is the most common pay frequency in the US?<\/h3>\n\n\n\n<p>50% of US employers offer biweekly payroll, making it the most common pay frequency in the US.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"how-many-companies-do-not-have-payroll\">How many companies do not have payroll?<\/h3>\n\n\n\n<p>Companies that do not have employees have no payroll. According to the US Small Business Administration Office of Advocacy, 81% of companies (about 26 million) have no payroll.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"what-is-the-percentage-of-payroll-tax\">What is the percentage of payroll tax?<\/h3>\n\n\n\n<p>There are three payroll taxes in the US.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Social security taxes. Paid by <strong>6.2%<\/strong> of the employers<\/li>\n\n\n\n<li>Social security taxes. Paid by<strong> 62% <\/strong>of the employees.<\/li>\n\n\n\n<li>Medicare taxes. <strong>2.9%<\/strong> and split evenly between both employer and employee<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"what-is-the-average-percentage-of-payroll-expenses\">What is the average percentage of payroll expenses?<\/h3>\n\n\n\n<p>The average business payroll expenses should be between 15 to 30% of gross revenue. This is considered the safe zone for most types of businesses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"conclusion\">Conclusion&nbsp;<\/h2>\n\n\n\n<p>As payroll is an essential part of every business, it is crucial to <strong>manage it efficiently<\/strong>. The traditional methods can be tedious, time-consuming, and costly. Understanding payrolls, taxes, and deductions helps employers to comprehend their payrolls.&nbsp;<\/p>\n\n\n\n<p>Payroll errors can be costly. One wrong digit in <strong>payroll calculation results<\/strong> in inaccurate paychecks and potential tax errors. Nearly $7 billion in penalties are collected from the company for payroll errors.&nbsp;<\/p>\n\n\n\n<p>It is necessary to be aware of <strong>common payroll mistakes<\/strong> and avoid them. 80% of payroll processing costs can be reduced by automation. Organizations are increasing the use of automation and outsourcing in payroll.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"sources\">Sources<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Pew. <a href=\"https:\/\/www.pewresearch.org\/social-trends\/2022\/07\/28\/majority-of-u-s-workers-changing-jobs-are-seeing-real-wage-gains\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Majority of U.S. Workers Changing Jobs Are Seeing Real Wage Gains<\/a><\/li>\n\n\n\n<li>CNBC. <a href=\"https:\/\/www.cnbc.com\/2022\/10\/24\/more-americans-live-paycheck-to-paycheck-as-inflation-outpaces-income.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">63% of Americans are living paycheck to paycheck<\/a><\/li>\n\n\n\n<li>American Payroll Association. <a href=\"https:\/\/info.americanpayroll.org\/pdfs\/npw\/2022_Getting_Paid_In_America_survey_results.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">What&#8217;s more important to you, better health benefits or higher wages?<\/a><\/li>\n\n\n\n<li>Association of International Certified Professional Accountants. <a href=\"https:\/\/www.aicpa.org\/press\/pressreleases\/2020\/45-percent-of-american-taxpayers-have-no-idea-when-they-last-updated-their-withholding-aicpa-w-4-survey.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">45% of American Taxpayers Have No Idea When They Last Updated Their Withholding<\/a><\/li>\n\n\n\n<li>American Payroll Association: <a href=\"https:\/\/www.nationalpayrollweek.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Getting Paid In America Survey<\/a><\/li>\n\n\n\n<li>JPMorgan Chase &amp; Co.: <a href=\"https:\/\/www.jpmorganchase.com\/institute\/research\/small-business\/a-cash-flow-perspective-on-the-small-business-sector\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">A Cash Flow Perspective on the Small Business Sector<\/a><\/li>\n\n\n\n<li>Economic Innovation Group: <a href=\"https:\/\/eig.org\/wp-content\/uploads\/2020\/03\/Small-Business-Share-of-Firms-and-Employment-by-Industry.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Small Business Share of Employment by Industry<\/a><\/li>\n\n\n\n<li>National Employment Law Project.<a href=\"https:\/\/s27147.pcdn.co\/wp-content\/uploads\/Independent-Contractor-Misclassification-Imposes-Huge-Costs-Workers-Federal-State-Treasuries-Update-October-2020.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"> Independent Contractor Misclassification Imposes Huge Costs on Workers and Federal and State Treasuries<\/a>&nbsp;<\/li>\n\n\n\n<li>Sdworx. <a href=\"https:\/\/www.sdworx.com\/en-en\/resources\/payroll-benefits\/risks-poor-payroll-businesses\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">The Risks of Poor Payroll for Businesses<\/a><\/li>\n\n\n\n<li>Workforce Institute. <a href=\"https:\/\/workforceinstitute.org\/82-million-us-workers-experienced-paycheck-errors\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">The Workforce Institute<\/a><\/li>\n\n\n\n<li>Eddy. <a href=\"https:\/\/eddy.com\/hr-encyclopedia\/payroll-statistics\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Payroll statistics<\/a>&nbsp;<\/li>\n\n\n\n<li>Zety. <a href=\"https:\/\/zety.com\/blog\/hr-statistics\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">2024 HR Statistics: Job Search, Hiring, Recruiting &amp; Interview<\/a><\/li>\n\n\n\n<li>IRS. <a href=\"https:\/\/www.irs.gov\/statistics\/collections-activities-penalties-and-appeals\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Collections, Activities, Penalties, and Appeals<\/a><\/li>\n\n\n\n<li>Symmetrical.ai. <a href=\"https:\/\/symmetrical.ai\/blog\/modern-payroll-system\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Modern HR technology<\/a><\/li>\n\n\n\n<li>Symmetrical.ai. <a href=\"https:\/\/symmetrical.ai\/blog\/automated-payroll-for-hr-managers\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Automation can reduce time-consuming and repetitive tasks in HR &amp; payroll departments<\/a><\/li>\n\n\n\n<li>Workato. <a href=\"https:\/\/www.workato.com\/the-connector\/hr-automation-statistics\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">18 HR automation statistics that stand out in 2023<\/a><\/li>\n\n\n\n<li>Zoomshift. 3<a href=\"https:\/\/www.zoomshift.com\/blog\/payroll-facts\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">8 Interesting Payroll Facts and Statistics You Should Know<\/a><\/li>\n\n\n\n<li>Forbes. <a href=\"https:\/\/www.forbes.com\/sites\/carolinecastrillon\/2021\/09\/22\/why-us-talent-shortages-are-at-a-ten-year-high\/?sh=69ec55a079c2\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Why US Talent Shortages Are At A 10-Year High<\/a><\/li>\n\n\n\n<li>Deloitte.<a href=\"https:\/\/www2.deloitte.com\/us\/en\/pages\/human-capital\/articles\/payroll-operations-survey.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"> Global payroll benchmarking survey report<\/a><\/li>\n\n\n\n<li>Bloomberg Tax. <a href=\"https:\/\/news.bloombergtax.com\/payroll\/survey-small-business-owners-misjudge-time-to-prep-payroll\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Survey: Small-Business Owners Misjudge Time to Prep Payroll<\/a><\/li>\n\n\n\n<li>Oracle.&nbsp; <a href=\"https:\/\/www.netsuite.com\/portal\/resource\/articles\/financial-management\/small-business-payroll-statistics.shtml\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Small Business Payroll Statistics: Numbers You Need to Know<\/a><\/li>\n\n\n\n<li>GPMI. <a href=\"https:\/\/www.gpminstitute.com\/publications-resources\/Global-Payroll-Magazine\/march-2022\/why-payroll-automation-is-critical-to-2022-business-growth-strategy\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Why Payroll Automation Is Critical to 2022 Business Growth Strategy<\/a><\/li>\n\n\n\n<li>Business DIT. <a href=\"https:\/\/www.businessdit.com\/payroll-outsourcing-statistics\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">9 Startling Statistics About Payroll Outsourcing: The Latest Insight<\/a><\/li>\n\n\n\n<li>McKinsey. <a href=\"https:\/\/www.mckinsey.com\/industries\/real-estate\/our-insights\/americans-are-embracing-flexible-work-and-they-want-more-of-it\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Americans are embracing flexible work\u2014and they want more of it<\/a>&nbsp;<\/li>\n\n\n\n<li>CloudPay. <a href=\"https:\/\/www.cloudpay.com\/resources\/how-global-payroll-can-adapt-to-the-gig-economy\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Gig Economy Index<\/a><\/li>\n\n\n\n<li>Thrive my way. <a href=\"https:\/\/thrivemyway.com\/gig-economy-stats\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Impressive gig economy stats 2023<\/a><\/li>\n\n\n\n<li>SHRM. <a href=\"https:\/\/www.shrm.org\/topics-tools\/news\/benefits-compensation\/2023-salary-budgets-projected-to-stay-20-year-high-trail-inflation\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">2023 Salary Budgets Projected to Stay at 20-Year High but Trail Inflation<\/a><\/li>\n\n\n\n<li>Chron.<a href=\"https:\/\/smallbusiness.chron.com\/much-gross-revenue-should-payroll-18985.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"> How Much of Gross Revenue Should Go to Payroll?<\/a><\/li>\n\n\n\n<li>Clutch. <a href=\"https:\/\/clutch.co\/press-releases\/25-small-businesses-still-record-finances-paper-risking-errors-security-breaches\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">25% of Small Businesses Still Record Finances On Paper, Risking Errors and Security BreachesBLS<\/a><\/li>\n\n\n\n<li>WTW. <a href=\"https:\/\/www.wtwco.com\/en-us\/news\/2022\/11\/us-pay-increases-to-hit-4-point-6-percent-in-2023-wtw-survey-finds\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">U.S. pay increases to hit 4.6% in 2023<\/a><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Are you still using spreadsheets to manage payroll? More than 34% of business owners still use spreadsheets to manage their\u2026<\/p>\n","protected":false},"author":6,"featured_media":15192,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[50],"tags":[24,201],"class_list":["post-15179","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-statistics","tag-finance","tag-salary"],"_links":{"self":[{"href":"https:\/\/jobera.com\/resources\/wp-json\/wp\/v2\/posts\/15179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jobera.com\/resources\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jobera.com\/resources\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jobera.com\/resources\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/jobera.com\/resources\/wp-json\/wp\/v2\/comments?post=15179"}],"version-history":[{"count":0,"href":"https:\/\/jobera.com\/resources\/wp-json\/wp\/v2\/posts\/15179\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jobera.com\/resources\/wp-json\/wp\/v2\/media\/15192"}],"wp:attachment":[{"href":"https:\/\/jobera.com\/resources\/wp-json\/wp\/v2\/media?parent=15179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jobera.com\/resources\/wp-json\/wp\/v2\/categories?post=15179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jobera.com\/resources\/wp-json\/wp\/v2\/tags?post=15179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}