April Fool? Payrolls Are on the Rise

It looks as though payrolls are finally starting to increase. Several data points show that employers are hiring and employment is ticking upwards.

“Russell Price, a senior economist at Ameriprise Financial Inc. (AMP) in Detroit, predicts employers will take on 2.5 million workers this year, after hiring 2.2 million last year.”

Firms are hiring employees to meet stronger demand as well as to supplement workforces that have become increasingly stretched during the past few years.

There are 3 leading indicators of the job market:

1. changes in jobless claims,
2. temporary help
3. and the ability of small businesses to hire the employees they need. All three have shown improvement.

We’ll see if the trend sticks, but for now, this is no April Fool!

April Fool? Payrolls Are on the Rise

It looks as though payrolls are finally starting to increase. Several data points show that employers are hiring and employment is ticking upwards.

“Russell Price, a senior economist at Ameriprise Financial Inc. (AMP) in Detroit, predicts employers will take on 2.5 million workers this year, after hiring 2.2 million last year.”

Firms are hiring employees to meet stronger demand as well as to supplement workforces that have become increasingly stretched during the past few years.

There are 3 leading indicators of the job market:

1. changes in jobless claims,
2. temporary help
3. and the ability of small businesses to hire the employees they need. All three have shown improvement.

We’ll see if the trend sticks, but for now, this is no April Fool!

How Small Businesses Can Effectively Handle a Payroll Crisis

The American Bankruptcy Institute reported more than 43,456 small businesses filing for bankruptcy protection in 2008 at the onset of the recession. Even to date, small and mid-sized businesses may encounter significant money problems. From INC Magazine, there are a few strategic tips that will help HR and employers effectively handle the situation with employees. 

• Let employees know well in advance, and not just right before pay cuts happen.
• Advise employees of upcoming restructuring and/or possible changes in ownership.
• If you struggle with paying employees, be sure to explore financing options before deciding to conduct massive layoffs or close completely.
• Avoid staggering the payroll, because it is a tricky state-specific issue, and should be avoided.  

Not paying employees at payroll time can have big consequences, both with the IRS and the Department of Labor. The U.S. DOL specifically requires an employer to pay covered non-exempt employees the full minimum wage, along with any accrued overtime for the given pay period.  

Also, once you’ve cleared this hurdle, you should be planning on how to prevent the situation from reoccurring in the near future. Once you’re in the clear, how will you restructure your company’s operations? How can you get the business back on track during difficult financial times until the economy and business can improve?  

Read the INC Magazine article

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