SurePayroll Survey Shows Banks May Not be the Problem for Small Business Economy
Hiring sags slightly in Scorecard results
GLENVIEW, IL —August 31, 2012 — SurePayroll Inc., a leader in providing online payroll to small businesses nationwide, today announced August results for its monthly SurePayroll Small Business Scorecard® showing small business owners' optimism at 60 percent with hiring down 0.1 percent and paychecks down 0.2 percent. While July was the first time since February that hiring had not been negative for the month, August’s data was slightly down again.
The Scorecard optimism survey found that 82 percent of small business owners did not seek lending in 2012. Of those that did, only 32 percent had difficulty securing lending.
“For a long time, the banks have taken a beating for not lending enough to small businesses, but this data suggests the banks may not be the problem,” said SurePayroll CEO and President Michael Alter. “There’s simply not enough demand in the economy. Many small businesses don’t have a reason to spend. Those businesses that do aren’t having a problem getting loans.”
Month-over-month SurePayroll Scorecard data shows hiring down 0.1 percent and the average paycheck down 0.2 percent. Hiring was down month-over-month in every region of the country except for the South, where it was up 0.2 percent. Paychecks were up month-over-month in the Midwest (0.6 percent) and down across the rest of the country.
Year-over-year, nationwide hiring is down only 1.5 percent and paychecks are down 1.4 percent. The South continues to show promising signs with hiring up 1.3 percent. The West has had the steepest hiring decline at 5.1 percent. Hiring in the Midwest is down 2.1 percent and paychecks are down 0.7 percent. In the Northeast, hiring is down 1.7 percent and paychecks are down 3.6 percent.
As the first economic indicator created by a payroll company, the SurePayroll Scorecard has provided a monthly look on national hiring and paycheck trends since September 2004. SurePayroll's Scorecard compiles data from over 35,000 small businesses, and exclusively reflects the trends affecting the nation's "micro businesses" — those with an average of eight employees.
SurePayroll is a wholly owned subsidiary of Paychex, providing an easy, online, convenient payroll service that keeps our more than 35,000 small business customers in control. SurePayroll also offers efficient online solutions for managing 401(k) plans, health insurance, workers’ compensation, employee screening and more. For accountants and banking partners, SurePayroll provides private-label and co-branded services that enable them to offer online payroll processing to their small business clients. The company has received numerous prestigious awards for its innovative technology, and outstanding customer service and sales teams, including recognition from PC Magazine, Accounting Today, the American Business Awards and many others. For more information, please visit www.SurePayroll.com.
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 567,000 payroll clients as of May 31, 2012. For more information about Paychex and our products, visit www.paychex.com.