10 Small Business Payroll Trends You Need to Know

If your business employs anyone who receives a regular salary, then you’ve encountered payroll and some of the challenges that come along with it. Fortunately, we’re seeing more and more trends towards making payroll processes smoother and easier to understand for you and your employees.

Here are 10 payroll trends for small business owners that you need to know:

Flexible employment terms

Chances are, not everyone on your staff has the exact same employment arrangement or benefits package. Maybe not everyone who works for you is full-time and salaried — you likely employ part-time, short-term, or contract/freelance staff. Payroll software is increasingly able to handle different terms and packages for different employees.

Leveraging the gig economy

More likely than not, you have, do, or will hire freelance professionals to help grow your business. As more and more people move towards freelancing their careers, you need to be ready to accommodate them in terms of payroll, too. We’re seeing more payroll software and services that can seamlessly add and remove team members as they come and go from your business.

Staying compliant is getting easier

The government places the burden on small businesses to remain compliant with various rules and regulations like the Affordable Care Act. It’s more important than ever to maintain accurate records and file as often as the law requires.  Payroll software combined with access to financial experts is making payroll compliance easier than ever.

Increased automation

You’re always looking for ways to work faster and smarter. As automation increasingly becomes a part of everyday business, easy-to-use software can also help automate your more repetitive payroll tasks.

More outsourcing options

Until recently, if you didn’t want to handle payroll yourself, the only other option was to outsource it to a specialty company that offered payroll services and nothing else (read: expensive). Nowadays, new, easy-to-use software has made it possible for small businesses to affordably bundle payroll into other service offerings. Some of the top choices are paychecks.com, Gusto, and Xero. Xendoo can also help facilitate payroll for small businesses with less than 5 employees.

Data at your fingertips

When you’ve opened up a new position in the past, how did you go about deciding on the salary and benefits package? Perhaps you asked around or tried to calculate the value of the role to your business. Today, payroll and salary data are widely available to help you make the best decision when it comes to new hires.

Integration, integration, integration

Payroll functions used to take place in a silo from the other activities of your business, especially if it was being outsourced. Today, quality accounting software with built-in payroll can connect to your other systems, like human resources, making it more useful and minimizing duplication.

Streamlining expenses

If your staff is given an expense account or permitted to request reimbursements, you know how much a hassle this can be. More and more, we are seeing payroll software that allows your employees to process their own travel, entertainment, and technology expenses — saving on resources and storing that information long-term.

Payroll in the cloud

With accounting software increasingly moving to the cloud, we’re seeing the same with payroll. And that’s good news for you and your staff because it means you’re now able to access payroll data anytime, anywhere, from any device with an internet connection.

Freedom of information

Now more than ever, employees and business owners want 24/7 access to their payroll info. Payroll software is increasingly shifting to give greater flexibility when it comes to requesting leave, checking past wages, and understanding taxes.

Let your dedicated team of financial experts at Xendoo help you navigate the waters of payroll and accounting for your small business.


This post is intended to be used for informational purposes only and does not constitute as legal, business, or tax advice. Please consult your attorney, business advisor, or tax advisor with respect to matters referenced in our content. Xendoo assumes no liability for any actions taken in reliance upon the information contained herein.


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