Payroll Challenges for Small Business Owners

The administrative processes that go into running a business can be complicated and time-consuming. One of the harder areas to get a grasp on is payroll processing, so working with a third party like Oregon payroll companies can save you time and money. If payroll isn’t executed accurately, there a number of things that can go wrong. From paying federal fines or facing litigation brought by an employee, here are some of the challenges that come from payroll processing.

Regulatory Compliance

The government has established payroll parameters that all companies must comply with. Corporate governance has become a necessity, rather than an afterthought. Non-compliance will take a toll on your company, and as legislation is continually changing, you need to work with a company that stays ahead of the game. All payroll operations must comply with each area of employment law.

Increased Costs

Small companies may be looking to conserve their resources, and the cost to implement a software for processing or to hire an outside company may hit your budget hard. However, this is a small price to pay for worry-free processing when compared to the alternatives of fines, fees, and legal costs.  The initial investment may be significant, but the long-term maintenance and upgrades are more manageable.


Payroll processing usually happens in batches, along weekly, bi-weekly, or monthly schedules. The information provided during each output needs to be accurate to both past and present payroll scenarios. Getting the compensation right for each employee is important, but you also need to keep an eye on additional payouts that arise from overtime, commission, maternity pay, or raises.

Data Security

When payroll is done through digital means, keeping the data safe from hacking or leaks is important. Any breach in payroll confidentially can negatively impact your business. Strong safety measures are a must.

Without accurate payroll processing, you will find your company losing employees and facing legal consequences. Build a processing resource into the budget to reduce this risk of these liabilities.

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