Small business payroll growth is moderating, but that could mean more sustainable growth ahead

By MAE ANDERSON
AP Business Writer

NEW YORK (AP) — Payroll payments per small business moderated as 2023 came to a close, according to new data from Bank of America. The BofA report found payroll payments rose 1.7% in December at small businesses. That’s consistent with the trend last year, with payroll payments rising most months. But the pace of payroll growth slowed “significantly” from its peak in March 2022, the report said. Data is culled from Bank of America’s business clients with less than $5 million in annual revenue.  Small businesses have been pressured over the past two years due to high inflation, high costs and a labor crunch.