SOURCE: Small Business Technology Institute

January 09, 2007 06:00 ET

SBTI Study Finds Technology Is Key to Easing Small Business Owners' Payroll Management Burden; 76% Seek Online Solutions to Calculate Deductions and Manage Payroll

Free Report and Webcast at

SAN JOSE, CA and PALO ALTO, CA -- (MARKET WIRE) -- January 9, 2007 -- A report released today by the non-profit Small Business Technology Institute (SBTI) and sponsored by PayCycle, Inc. confirms that managing the payroll process is a growing concern for a majority of small businesses surveyed, and represents a significant opportunity to increase productivity and accuracy in 2007.

The report, titled "Small Employers Seek the Help of Technology to Manage Payroll," is part of the Snap Insight Research Series, a program that studies the adoption and use of information technology among small businesses. Findings are published in a free report and webcast at and will be featured in an upcoming print issue of Small Business Technology Magazine.

Significant trends uncovered in this report:

--  While a majority (75%) of small businesses with employees consider
    managing payroll an annoying overhead and face the task reluctantly, they
    are more likely to "do it themselves" than outsource the function the way
    larger companies do.
--  Of small businesses that prepare payroll in house, 26% use a computer
    with specialized software and 5% use an online application.
--  The study confirms growing acceptance of using the Internet as a
    financial transaction vehicle, with 60% indicating they use online
    financial services and an additional 29% planning to do so in the near
--  Almost half of all small employers make changes to deductions at least
    once a year. While most employers are confident in the accuracy of their
    deduction calculations, the time they spend calculating and updating
    records is burdensome.
--  76% of respondents said they welcome the availability of online tools
    to help them calculate payroll deductions accurately and quickly.
"The small businesses we surveyed spoke loud and clear, telling us that managing the payroll process is a time-consuming task that pulls them away from important revenue-generating activities," said Andrea Peiro, CEO and practice director of Market Intelligence for the Small Business Technology Institute. "There is enormous potential for technology innovators to help small businesses address this priority in the New Year with online payroll services that streamline the payroll process and make it easier to administer employee compensation."

"Easy online tools, such as the PayCycle® payroll service, can help any small business owner save time and money," said Jim Heeger, CEO and president of PayCycle. "Over and over again our customers tell us how delighted they are with the PayCycle service because it frees up their time for other tasks, and because it is an extremely easy and affordable solution. Our thirty-day free trial offer means there is no excuse for not trying PayCycle."

Free Payroll Calculator

PayCycle offers a free payroll calculator to help small business owners and managers view "what if" scenarios, calculate various combinations of pay amounts and find the right deductions. The free calculator is available at

About the Snap Insight Research Series

Snap Insight is a sponsored research service that delivers concise, comprehensive knowledge on the adoption and use of information technology among small businesses in a multimedia package. It provides a fast, low-cost way to generate outstanding market knowledge, media interest and leveraged advertising exposure in a market comprised of more 20 million users, spending more than $40 billion per year on technology, according to the Small Business Technology Institute.

Recent reports include:

--  Entrepreneurs Go Untethered...For Good: A report on how notebook
    computers have emerged as the business weapon of choice among American
--  Beyond the Hardware Edge: Analyzes how one-person businesses in the
    U.S. buy and use information technology.
Learn more at

About the Small Business Technology Institute

The Small Business Technology Institute (SBTI) is a non-profit, public benefit corporation that fosters the adoption of information technology among small businesses. SBTI provides information technology awareness, education, consulting, and support services to businesses with 1 to 300 employees with a focus on disadvantaged categories. SBTI also provides technology developers and vendors with market intelligence and knowledge to ensure the development of products that meet the needs of small businesses. Read a free copy of Small Business Technology Magazine, a publication of SBTI, by visiting For more information on SBTI, visit

About PayCycle, Inc.

PayCycle is the leader in on-demand payroll, targeting small businesses and the accountants that serve them. PayCycle's mission is to make paper-based payroll obsolete. PayCycle's unique, "Do-It-With-You"(SM) (DIWY(SM)) technology platform guides customers through the entire payroll process from paychecks to W-2s. By integrating with the leading small business accounting packages such as Microsoft Money Home & Business, and QuickBooks, QuickBooks Online and QuickBooks for Mac, PayCycle eliminates the headache of data re-entry. PayCycle is committed to providing outstanding customer service and is a proud finalist for the 2006 American Business "Stevie" award for "Best Customer Service Organization." Visit

PayCycle is a registered trademark, and "Do-It-With-You" and "DIWY" are service marks of PayCycle, Inc. Other product names are the trademarks of their respective owners.

Contact Information

  • Media contacts:

    Sandy Munio
    Small Business Technology Institute
    Email Contact
    408-494-0212 x115

    Julie McHenry
    Communications Insight, LLC for PayCycle
    Email Contact