January 20th, 2011 
Maria Helm 
January started off on the right foot. The announcement that the unemployment rate had fallen to 9.4 percent was great news for Americans – especially small business owners.
The CBIZ Small Business Employment Index reported that the largest employee increase since June of last year was this past December. Phillip Noftsinger, a business unit president for CBIZ Payroll Services, explained that due to an increase in demand and consumer spending, small business owners were able to increase the number of employees hired.
“The results of this month’s report are consistent with the tone of other employment reports that we have seen throughout the month and encourages one to look to a brighter 2011,” Noftsinger said.
And the good news keeps on coming: Starting this month, workers will get a two percent pay raise thanks to President Obama’s tax cut. The tax cut entails unemployment insurance to be extended for an additional 13 months, a two-percent employee side payroll tax credit, and $40 billion in tax breaks for families and students.
However, Noftsinger included a word of caution for small business employers: “I expect a number of small business owners to remain cautious toward substantial increases in employee hires over the short term as the country’s economic seas have yet to calm completely,” he said. “Still, this positive trend should gain additional traction.”
If you are a small business owner getting ready to add a few heads to your roster, here are a few tips on how to maintain a low cost for payroll services:
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