A local payroll company is getting ready to come out with a regular report on how small businesses around the U.S. are doing. It could provide another window into the state of the nation's economy.
Paychex officials often get asked about how the economy is doing because they do payroll work for so many small and medium sized businesses. So now, they are formalizing the process, and the Rochester area company is launching a new index examining the state of small business employment.
Chief Financial Officer Efrain Rivera says since so much of the economy is based on small business, this new monthly index should provide a good snapshot of how businesses are faring.
"I think it's going to have a widespread use for gauging what's happening in the underlying economy, particularly in the small and medium sized business where 95 percent of all companies reside. "
Since this index will incorporate data from approximately 350,000 small businesses, Paychex officials say this will provide one of the largest sample sizes for any small business index or report in the country.
Paychex is partnering with a research firm called IHS. They will formally launch the index with an event at the NASDAQ exchange on April 1st.