Latest news with #midsizebusiness
Yahoo
03-07-2025
- Business
- Yahoo
Trump tariffs would cost US employers $82.3B: Analysis
Midsize U.S. businesses could face a $82.3 billion to $187.7 billion hit if President Trump sticks to his sweeping tariff plans — creating the potential for price hikes, layoffs and hiring freezes for many employers, according to a new analysis. The JPMorganChase Institute released two reports Wednesday on the impact Trump's import taxes will have on companies with $10 million to $1 billion in annual revenue — a category that covers about a third of the nation's private-sector workforce. 'Midsize firms are an important and often overlooked segment of the economy,' the institute's researchers wrote in a release on the findings in the companion reports. 'Together, these reports offer a clearer picture of how recent tariff changes are affecting midsize firms across industries and regions in the U.S.' Trump launched his massive 'Liberation Day' tariff overhaul on April 2, but his administration agreed to temporarily pause the hikes on most countries. The moratorium delaying the 'reciprocal' tariffs is set to expire next week. 'The tariff rates that have been announced so far have varied widely from one country to the next, and we have seen that policy can shift quickly,' the JPMorganChase Institute's researchers noted. 'Vulnerable midsize firms may need to adapt their business models, which could affect their customers, other businesses and their regional economies.' 'If they struggle, it may cause ripple effects for other businesses and their communities,' they added. White House press secretary Karoline Leavitt said last week that the July 8 deadline is 'not critical' and could be extended. Still, the institute analyzed the impact under scenarios based on hikes the president previously outlined, possible negotiated levels with major trade partners and the retaliatory tariffs other countries have proposed. The Trump administration agreed to a 55-percent tariff rate on Chinese imports in a trade truce struck in May after several rate hikes. 'Since midsize firms have an outsize reliance on Chinese goods, making up 20.9 percent of their total 2022 goods imports, a rate of 55 percent still leads to substantial costs for some segments of the middle market,' the researchers noted. When analyzing under a hypothetical 10-percent universal import tax and higher rates of 55 percent on China and 25 percent on Mexico and Canada, the institute concluded businesses would face an $82.3 billion — or $2,080 per middle market employee — cost increase from tariffs. 'This represents about 3.1 percent of the average annual payroll of a U.S. midsize firm,' they wrote. Under an analysis of all tariffs rising to Trump's full 'Liberation Day' levels, the researchers found total direct tariff costs to midsize firms would grow more than sixfold to $187.7 billion, or $4,740 per employee. 'An annual tariff cost of $4,740 per employee means that midsize firms would, on average, face additional costs of over 7 percent of their payroll,' they wrote. The institute also highlighted that the way the president moves forward with trade agreements and tariffs could have a wide range of potential effects on U.S. businesses. 'If paused tariffs go into effect again, they could generate major upfront costs forthe middle market, while the impact may be modest if future trade deals lead to further tariff reductions from current rates,' they wrote. 'Though tariffs could stimulate domestic investment and benefit some firms due to reduced international competition, they would lead to significant cost increases for others.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Sign in to access your portfolio
Finextra
17-06-2025
- Business
- Finextra
CloudPay debuts 'out-of-the-box' payroll system for mid-size businesses
CloudPay, the global leader in payroll and payments solutions, has unveiled a brand new 'out of the box' payroll solution, designed specifically for midsize businesses to streamline and simplify payroll processes. 0 The solution is easy to launch, easy to use, and ready for growth as businesses scale up into new countries or new entities. This new powerful, fully cloud-based payroll solution is industry-leading, featuring: • Fixed scope, fixed fee packages to provide clarity, certainty and control • Fast, hassle-free implementation and onboarding within 60 days, with ready-to-go single country set-up to accelerate value generation • Intuitive, easy-to-manage experience with a digitally-based platform to manage new hires, payroll, payments and changes, reducing operational dependency and shortening resolution time - with expert support on hand when required • Built-in global compliance backed by deep local expertise and automated tax and labour rules, minimising legal risks and providing clarity on in-country regulations • Integrations that work simply with HCMs and other data sources, eliminating rework and manual processing Designed to operate in tandem with tailored HCM solutions, CloudPay's release demonstrates how a payroll solution can work seamlessly with HCM technology to create a simple and effective solution. This builds on the recent best-in-class integration with Workday's Global Payroll Connect (GPC) solution. John Pearce, Chief Customer Officer at CloudPay, comments: 'We are excited to launch this new proposition specifically aimed at midsized businesses - it is utterly unique. A ready-to-go payroll solution that streamlines and simplifies payroll processes, keeps pace with changing regulatory frameworks worldwide, with the option to scale in line with business growth, is arguably the silver bullet many organisations have been looking for. 'We believe that global payroll shouldn't be complicated for midsize businesses so our solution is underpinned by intelligent automation, global expertise and best-in-class customer service. Furthermore, it's not rigid in its structure; we understand that customers need adaptable pay systems, and so we can tailor the solution accordingly. 'Whether companies are entering new markets or optimising existing operations, we look forward to supporting more customers on their payroll journeys, eliminating the manual strains of out-of-date payroll solutions.'
