For small businesses, the right payroll system can deliver big benefits

It's a challenging time for small business owners to hire and manage employees. With U.S. unemployment near a 50-year-low, qualified workers are in short supply, while major companies and a number of states around the country are hiking their minimum wage. For small businesses, that puts a premium on getting their payroll processes right. Especially crucial for employers: properly classifying workers as full employees or as independent contractors. Mistakes can mean running afoul of labor laws and paying more in payroll taxes to the IRS. Given the thin margins for many small businesses, it's no exaggeration to say that such errors can be fatal.