Paying Up

Payroll is one of the more sensitive things that businesses handle. There is no company without payroll; as long as a company or business has an employee, there will be payroll.

While many have the idea that payroll is only a slip of paper that workers receive to inform them of the money they earned during a certain work period and the taxes and deductions they have to pay, payroll means more than that. A companys payroll is representative of its management, the manner with which a company regards the importance of its workers. Employees are sensitive to payroll issues, and a company that takes pain to reduce such issues are often rewarded with gratitude by employees.

It is not easy for companies to deal with payroll. Payroll nowadays isnt the simple calculation of an employees wage rate multiplied by the number of days the employee worked. Innovative incentive schemes, bonuses, and perks have to be tracked meticulously. Then there are taxes and deductions that have to be complied with, especially those that pertain to worker benefits. Stringent regulations on worker rights have forced many companies to hire specialists whose job is to keep current with the regulations.

Big businesses might be able to deal with hiring specialists to check with payroll regulations. But small businesses, especially startups, might be hard pressed to afford such specialists. This is true especially in a place like Colorado, whose business model is now based on incubating small startups in the high tech sector. Many of these startups have great products or service ideas but hardly have the resources to put up the staff to deal with the daily nitty-gritty of business.

And to help startups like these with their payroll, Colorado encourages the establishment of business support enterprises. These business support enterprises essentially take the function of a certain department in a company.

The services are usually not limited to just payroll. Colorado business support enterprises have just about offered all the services offered by various company departments. The work they do could be as complex as payroll, or as simple as timekeeping.

By encouraging these business support enterprises to thrive and handle such sensitive tasks as payroll, Colorado is assured that it will receive the correct revenue while ensuring compliance of companies with worker rights regulations.