Payroll is one of the biggest expenses any business has. It’s also become one of the main topics this campaign season. I’m not here to take a position on the politics of the minimum wage, but I do think this is a good time for every small-business owner to reflect on labor costs and how they relate to the bottom line. After all, our employees won’t have any jobs if we don’t manage every aspect of our business well.
First, some background. The federal minimum wage is now $7.25 an hour; some states and cities have a higher minimum wage and if your location does, that’s generally what you will have to pay. There are some different rules for tipped workers and young workers, especially students.
