SurePayroll Small Business Scorecard®: Small Business Revenue Growth Outpacing Taxes
Small Businesses Stay Nimble, Sidestep Tax Hit
GLENVIEW, IL - April 21, 2014 - Tax season came and went with a bit of a silver lining for small business owners – while taxes went up for the majority of them, revenue growth was even stronger. SurePayroll Inc., a leader in providing online payroll to small businesses nationwide, announced early results for the April 2014 SurePayroll Small Business Scorecard and survey, which found that revenue increases outpaced tax increases for small business owners.
One in three small business owners surveyed saw revenue growth greater than 15 percent in 2013, compared to only one in five who saw taxes increase by more than 15 percent. Overall, 60 percent saw revenue increase in 2013, while 57 percent saw taxes increase.
"Our data continues to show a small business economy that's operating lean and mean," said SurePayroll Vice President of Marketing Scott Brandt. "Overall the rates of revenue and tax growth are similar, however the small businesses that are scaling more than 15 percent managed to outpace what they owed in taxes. It's an impressive feat."
In addition, optimism about the small business economy remains high at 69 percent, according to the Scorecard survey, almost unchanged from the beginning of the year. This despite month over month hiring being slightly down at 0.1 percent and the average paycheck being flat. The percentage of 1099s or contractors was 6.52 percent, up from 6.49 percent in March.
"They're not adding to their staffs, yet 60 percent are growing revenue – one in three by more than 15 percent. Let's hope the growth continues and leads to more hiring," said Brandt.
Hiring in the South looks to be flat month over month; down 0.3 percent in the Midwest and Northeast; and up 0.1 percent in the West. The average paycheck looks to be down 0.1 percent across the country, except in the South, where it looks to be up 0.1 percent.
As the first economic indicator created by a payroll company, the SurePayroll Scorecard has provided a monthly look at national hiring and paycheck trends since October 2004. SurePayroll's Scorecard compiles data from small businesses nationwide, and exclusively reflects the trends affecting the nation's "micro businesses" - those with1-10 employees. The average business reflected has six employees.
The full SurePayroll Small Business Scorecard – Main Street Matters infographic includes data for SurePayroll's top MSAs. The April 2014 Scorecard is available now on the SurePayroll blog.
SurePayroll is the trusted provider of easy online payroll services to small businesses nationwide. Whether a business has 1, 10, or 100 employees, SurePayroll delivers peace of mind by combining innovative, industry-leading technology and personalized support from an award-winning, U.S.-based customer care team. SurePayroll also provides private-label and co-branded services for accountants and banking partners as well as offering efficient online solutions for managing 401(k) plans, health insurance, workers' compensation, employee screening and more. SurePayroll is a wholly owned subsidiary of Paychex. For more information, please visit www.SurePayroll.com. Follow us on Twitter - Circle us on Google+ - Connect with us on LinkedIn - Like us on Facebook.
Paychex, Inc. (NASDAQ:PAYX) is a leading provider of payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses. The company offers comprehensive payroll services, including payroll processing, payroll tax administration, and employee pay services, including direct deposit, check signing, and Readychex®. Human resource services include 401(k) plan recordkeeping, section 125 plans, a professional employer organization, time and attendance solutions, and other administrative services for business. A variety of business insurance products, including group health and workers' compensation, are made available through Paychex Insurance Agency, Inc. Paychex was founded in 1971. With headquarters in Rochester, New York, the company has more than 100 offices serving approximately 570,000 payroll clients as of May 31, 2013. For more information about Paychex and our products, visit www.paychex.com.
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