It’s been predicted that payroll costs are going to drastically increase over the next several years. We don’t know by how much or exactly when. Fortunately, there are ways business owners can begin to prepare now for the benefit of finances, employees and clients alike. Take a look at seven steps to help you prepare your business for the inevitable payroll change in the article, '7 Things You Can Do About the Upcoming Payroll Explosion,' by Inc.com.
- Outsource, outsource, outsource – Freelancers are everywhere, and better yet, they don’t have to be in your office, or even in your state! Consider passing along extra work to contractors who charge by the hour or project; it will save you the extra money it costs to hire full-time employees.
- Lower your healthcare costs – By January 1, 2016, businesses with more than 50 full time equivalent employees will be required to provide healthcare benefits. Each available health benefits package will offer similar benefits, but have different deductibles. Be sure to consult with your health insurance broker to make sure you are getting the best benefits package possible. And most importantly, prepare your employees for any big changes, especially when choosing a plan with a higher deductible.
- Up your minimum wages – The minimum wage will increase. Make some changes now and settle on a higher minimum wage so that when the required minimum wage goes into effect, you are already financial prepared.
- Work in a long-term agreement –It may be wise to work in a long-term agreement with you most valuable employees. Take a look at reasonable raises and bonus plans, and decide what financial change you can make to keep your key assets locked in, and happy.
- Educate and train – Cross train your employees and make sure they can step in for each other when necessary. It not only boosts team morale, but also prepares your employees for busy seasons, changes in departments, or when there are fewer hands on deck.
- Share in the profits – Stick with what your company does best, don’t try to manage it all. Don’t be afraid to reach out to your business owner friends and refer them to your clients for specific jobs your employees aren’t trained to do. Who knows, they may refer your company in return. Plus, your clients will appreciate and value your working relationship greatly when you care more about their products than your profits.
- Be honest with your clients – With all of the above actions, it only leads to one thing… increased product price. Don’t surprise clients with price increases. Talk with your customers now and explain how product costs will increase in the future.
By preparing for the future, you are in turn protecting your assets, employees and reputation. It’s a win-win. In order to really understand what will benefit your company’s needs, meet with a professional who handles health benefits and payroll. As experts in both payroll and health care, BenefitMall is your place to go.
These free resources should not be taken as tax or legal advice. Content provided is intended as general information. Tax regulations and laws change and the impact of laws can vary. Consult a tax advisor, CPA or lawyer for guidance on your specific situation.