Location matters when it comes to employee compensation. Our analysis of the U.S. Census Bureau’s Annual Business Survey reveals significant variations in payroll across states, offering crucial insights for businesses planning their next move.
State-by-State Payroll Analysis
Key Finding: In 2022, California led the nation with an average annual payroll of $7,215 per firm, significantly above the national average of $1,210.
Top 10 States by Average Payroll
📊 Comprehensive Analysis
Business Size Impact on Payroll
Understanding how business size affects payroll can help you plan your growth strategy. Our analysis shows significant variations across different company sizes.
Industry Leaders in Compensation
Different industries show distinct payroll patterns, with some sectors consistently offering higher compensation.
🔍 Deep Dive: The Numbers
State-Level Statistics
- Total Firms Analyzed: 60,088,950.0
- Total Annual Payroll: $72,721,968,766
- National Average: $1,210 per firm
Size Distribution
- Small Businesses (1-49 employees): Represent the majority of firms
- Mid-Size (50-249 employees): Show consistent payroll growth
- Large Enterprises (250+ employees): Lead in total payroll volume
Industry Insights
- Top Paying Sector: Management
- Most Firms: Professional Services
- Highest Total Payroll: Health Care
🎯 Strategic Implications
- Location Strategy:
- Consider state-specific payroll trends
- Factor in regional cost variations
- Evaluate talent pool availability
- Growth Planning:
- Align expansion with industry benchmarks
- Consider optimal business size targets
- Plan for payroll scaling
- Competitive Positioning:
- Benchmark against industry standards
- Consider regional market rates
- Factor in business size dynamics
Important Notes
- Data Suppression: Some data points may be suppressed (marked as ‘S’) to protect business confidentiality
- Averages vs. Medians: State-level averages may be influenced by large employers
- Industry Mix: Payroll variations often reflect different industry concentrations
- Size Impact: Business size significantly affects average payroll figures
Ready to Make Your Move?
Whether you’re launching a new venture or expanding existing operations, understanding regional payroll patterns is crucial. Register with Business Initiative to access:
- Detailed state-by-state analysis
- Industry-specific payroll benchmarks
- Expert guidance on location strategy
- Size-based growth planning tools
Source: U.S. Census Bureau Annual Business Survey (ABS) 2022
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