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UK economic growth slows in first quarter

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finance minister Rishi Sunak said Britain's economic recovery from the pandemic was "being disrupted by Putin's barbaric invasion of Ukraine and other global challenges
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Britain’s economy grew at a slower pace in the first quarter compared with the final three months of last year as the country battled soaring inflation, official data showed Thursday.

The economy grew 0.8 percent in the January-March period compared with expansion of 1.3 percent in the fourth quarter of last year, the Office for National Statistics said in a statement.

After solid output in January, the UK economy posted zero growth the following month and contracted by 0.1 percent in March, ONS data showed.

It comes after the Bank of England (BoE) last week warned that Britain risks falling into recession with UK inflation expected to top 10 percent, a four-decade high, by the end of the year.

Consumer prices are surging worldwide on supply strains as economies reopen from pandemic lockdowns — and in the wake of the Ukraine war that is aggravating already high energy costs.

– ‘Russia disruption’ –

Responding to Thursday’s data, finance minister Rishi Sunak said Britain’s economic recovery from the pandemic was “being disrupted by (Russian President Vladimir) Putin’s barbaric invasion of Ukraine and other global challenges”.

Sunak, however, added in a statement that UK “growth in the first few months of the year was strong, faster than the US, Germany and Italy”.

While the UK economy grew for a fourth quarter in a row, and is above pre-pandemic levels, output in the first three months of 2022 was the lowest for a year.

“Our latest monthly estimates show GDP fell a little in March, with drops in both services and in production,” said Darren Morgan, director of economic statistics at the ONS.

“Construction, though, saw a strong month, thanks partly to repair work after the February storms.”

Growth over the entire first quarter was driven by expansion in a number of service sectors, including hospitality and transport, Morgan added.

However, the contraction in March and slower first-quarter output as a whole “suggest the economy had less momentum than we thought even before the full hit from the cost-of-living crisis has been felt”, noted Paul Dales, chief UK economist at Capital Economics.

“The risk of recession has just risen,” he said, adding that “strong price pressures will probably mean the BoE will raise interest rates further”.

The Bank of England last week raised its main interest rate by a quarter point to one percent to tackle runaway UK inflation.

It was the fourth straight increase by the BoE, while its key rate now stands at the highest level since the global financial crisis in 2009. 

That is hiking borrowing costs for consumers and businesses, further impacting spending.

Britain’s cost-of-living crisis was blamed in part for British Prime Minister Boris Johnson’s Conservative party losing control of key councils in recent local elections.

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25 richest people in America and how they did it

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Stacker compiled a list of the 25 wealthiest people in the country and how they've maintained their fortune.
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A shot at the Powerball jackpot or an unexpected holiday gift can make you feel like a million bucks. But there are people in the nation who are making millions every day. Some became entrepreneurs straight out of college; others worked at companies for years before conceiving life-changing inventions. Some of America’s most affluent people inherited their wealth, while others’ path to prosperity has all the makings of a rags-to-riches story. Who are the wealthiest people in America, and how have they maintained financial success?

There are many ways to make money in America, from technology to investments to software development. Stacker compiled a list of the 25 wealthiest people in the nation. These individuals are ranked by estimated net worth, using Forbes 400 (Real Time) data accessed in November 2022. The list starts with people with tens of billions of dollars and climbs even higher, finishing with one person reported to be worth $200 billion.

Continue reading to see where a shoe designer, Microsoft’s co-founders, and department store moguls rank on this list of the richest people in the country.

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Jim Simons attending the 23rd Annual Stars of Stony Brook Gala at Cipriani 42nd Street on April 13, 2022, in New York City.

Roy Rochlin // Getty Images

#25. Jim Simons

– Estimated net worth: $28.1 billion
– Age: 84
– State of residence: New York
– Source of wealth: hedge funds

Famed mathematician Jim Simons left his academic career to helm the hedge fund Renaissance Technologies at 40. Simons pioneered the stock market industry with his data-driven approach. His methods are widely used in the stock market industry to this day.

Stephen Schwarzman on center stage during the opening day of Web Summit 2019.

David Fitzgerald // Getty Images

#24. Stephen Schwarzman

– Estimated net worth: $29.1 billion
– Age: 75
– State of residence: New York
– Source of wealth: investments

After leaving financial services firm Lehman Brothers in the 1980s, Stephen Schwarzman partnered with his friend Pete Peterson to start another investment firm, Blackstone Group. Blackstone Group expanded and led to Schwarzman’s success as a sought-after broker, providing advice to clients like the Department of the Treasury.

The Irish Financial Services Centre, home of SIG's European Headquarters.

Eric Jones // Wikimedia Commons

#23. Jeff Yass

– Estimated net worth: $30 billion
– Age: 66
– State of residence: Pennsylvania
– Source of wealth: trading, investments

Jeff Yass started as an accountant and was a professional gambler for a while. But eventually, he became a corporate executive and, in 1987, co-founded the investment company that became Susquehanna International Group. SIG has invested in numerous companies globally and has donated millions to conservative political groups and candidates.

Len Blavatnik arriving at the Warner Music Group Pre-Grammy Celebration at Nomad Hotel Los Angeles on February 7, 2019.

Gregg DeGuire // Getty Images

#22. Len Blavatnik

– Estimated net worth: $30.7 billion
– Age: 65
– State of residence: New York
– Source of wealth: music, chemicals

Len Blavatnik has a diversified portfolio of investments. The billionaire business magnate is known for his high-reward but risky business deals, from oil to chemicals to music. Blavatnik has stakes in the chemical company LyondellBasell, clothing retailer Tory Burch, Warner Music Group, and Spotify.

Ken Griffin participating in a panel discussion during the annual Milken Institute Global Conference at The Beverly Hilton Hotel on April 29, 2019 in Beverly Hills, California.

Michael Kovac // Getty Images

#21. Ken Griffin

– Estimated net worth: $30.8 billion
– Age: 54
– State of residence: Florida
– Source of wealth: hedge funds

Ken Griffin is the founder of Citadel, the Florida-based hedge fund where he’s made the bulk of his fortune. During his undergraduate days at Harvard University, Griffin started investing and placed a satellite dish on the roof of his dorm to obtain real-time stock data.

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Jacqueline Mars, center, and her granddaughters, Graysen Airth, left, and Katherine Burgstahler, right, arriving for the formal Artist's Dinner honoring the recipients of the 40th Annual Kennedy Center Honors.

Pool // Getty Images

#19. Jacqueline Mars (tie)

– Estimated net worth: $37 billion
– Age: 83
– State of residence: Virginia
– Source of wealth: candy, pet food

M&M’s, Snickers, Skittles, and Milky Way are all products of Mars, the candymaker partially owned by Jacqueline Mars, who inherited the company from her family, which founded its first factory in 1911. Today, Mars oversees the candymaker’s various products beyond candy, including chewing gum and pet care products.

Queen Elizabeth II presenting American businessman John Mars with an honorary Knighthood at Windsor Castle on April 29, 2015 in Windsor, England.

WPA Pool // Getty Images

#19. John Mars (tie)

– Estimated net worth: $37 billion
– Age: 87
– State of residence: Wyoming
– Source of wealth: candy, pet food

Alongside his sister Jacqueline, John Mars owns the Mars manufacturing company, which produces candy, chewing gum, and pet care products. In 2015, he was knighted by Queen Elizabeth II.

MacKenzie Scott attending the 2018 Vanity Fair Oscar Party hosted by Radhika Jones at Wallis Annenberg Center for the Performing Arts on March 04, 2018, in Beverly Hills, California.

Toni Anne Barson // Getty Images

#18. MacKenzie Scott

– Estimated net worth: $37.7 billion
– Age: 52
– State of residence: Washington
– Source of wealth: Amazon

After Mackenzie Scott and her ex-husband, Amazon founder Jeff Bezos, divorced in 2019, Mackenzie inherited a 4% stake in Amazon’s shares, valued at $38 billion.

The former couple met in 1992 when they both worked for D.E. Shaw, a New York hedge fund, and married the following year. It was Scott who encouraged Bezos to launch an online business. Since becoming one of the wealthiest women in the world, Scott has dedicated a large portion of her wealth to philanthropic initiatives.

Founder and current chairman emeritus of Nike, Inc Phil Knight standing on the sidelines before the NCAAF game between the Oregon Ducks and the Arizona State Sun Devils at Sun Devil Stadium on November 23, 2019, in Tempe, Arizona.

Christian Petersen // Getty Images

#17. Phil Knight & family

– Estimated net worth: $41.5 billion
– Age: 84
– State of residence: Oregon
– Source of wealth: Nike

Before becoming the co-founder of sneaker giant Nike, Phil Knight had joined the University of Oregon track team. There, Knight became good friends with coach Bill Bowerman, who would later become his business partner. Soon after completing a business program, Knight borrowed $50 from his father to import high-quality running shoes from Japan at an affordable cost. The shoe mogul has undoubtedly come a long way from selling sneakers out of the trunk of his car in 1964, earning $8,000 in his first year. As of November 2022, the Nike brand is worth over $40 billion.

Michael Dell speaking onstage at Decades Not Days: Investing & Entrepreneurship during the 2022 SXSW Conference and Festivals at Hilton Austin on March 14, 2022, in Austin, Texas.

Diego Donamaria // Getty Images

#16. Michael Dell

– Estimated net worth: $50 billion
– Age: 57
– State of residence: Texas
– Source of wealth: Dell Technologies

Michael Dell’s dream of developing and selling computers began in his dorm room at the University of Texas. Less than 10 years later, he became the founder and CEO of Dell. Dell’s vision for computers was the ability for consumers to buy machines customized to their needs. Today, the computer technology market is worth $13.5 billion.

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Alice Walton speaking onstage during the Getty Medal Dinner 2022 at Getty Center on October 03, 2022, in Los Angeles, California.

Stefanie Keenan // Getty Images

#15. Alice Walton

– Estimated net worth: $55.7 billion
– Age: 73
– State of residence: Texas
– Source of wealth: Walmart

Alice Walton inherited Walmart from her father, Sam Walton, who established the company in Arkansas in 1962. Alice is known for her curation and support of the arts and is considered one of the richest women in the world, according to Forbes.

Charles Koch standing for a portrait after an interview with the Washington Post at the Freedom Partners Summit on Monday, August 3, 2015, in Dana Point, California.

The Washington Post // Getty Images

#13. Charles Koch (tie)

– Estimated net worth: $56 billion
– Age: 87
– State of residence: Kansas
– Source of wealth: Koch Industries

Charles Koch is the chairman of Koch Industries, the far-reaching corporation involved in oil production, chemicals, commodity trading, and investing. He inherited Koch Industries from his father, Fred Koch, and co-owned the company with his brother David, who passed away at age 79 in 2019. The two brothers are known for their involvement in conservative politics and think tanks.

Julia Koch at the Smithsonian National Museum of Natural History on January 28, 2010, in Washington, D.C.

Patrick McMullan // Getty Images

#13. Julia Koch & family (tie)

– Estimated net worth: $56 billion
– Age: 60
– State of residence: New York
– Source of wealth: Koch Industries

Julia Koch and her three children were bequeathed a 42% stake in the business co-owned by her late husband, David Koch. Koch Industries refines oil and manufactures fertilizer and paper products. The couple, who met on a blind date in the early ’90s, were philanthropists and collectively donated millions to Mount Sinai Medical Center and the Stanford Children’s Hospital.

Owner Rob Walton of the Denver Broncos looking on before the game against the Las Vegas Raiders at Allegiant Stadium on October 02, 2022, in Las Vegas, Nevada.

Ethan Miller // Getty Images

#12. Rob Walton

– Estimated net worth: $56.7 billion
– Age: 78
– State of residence: Arkansas
– Source of wealth: Walmart

Rob Walton is the son of the late Sam Walton, who founded Walmart, the largest retailer in the world. After Sam passed away, Rob took over as Walmart’s chairman in 1992. In June 2022, the Walmart heir and his family purchased the Denver Broncos for $4.65 billion, the most expensive sale price for an American sports team. Walton outbid other groups who also bid well over $4 billion.

Mark Zuckerberg, Chief Executive Officer and Founder of Facebook, at Elysee Palace on May 10, 2019, in Paris, France.

Marc Piasecki // Getty Images

#11. Mark Zuckerberg

– Estimated net worth: $57.7 billion
– Age: 38
– State of residence: California
– Source of wealth: Facebook

As the well-known story goes, Mark Zuckerberg created Facebook in his dorm room at Harvard University in 2004. Less than 15 years later, the social media platform—worth more than $290 billion—has nearly 3 billion users and is credited with connecting people worldwide. It has also been at the center of several misinformation and political propaganda scandals, some of which have required Zuckerberg to testify before Congress. Zuckerberg remains the company’s CEO and is expanding his interests in philanthropy.

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Jim Walton clapping at the Walmart shareholders meeting event on June 1, 2018, in Fayetteville, Arkansas.

Rick T. Wilking // Getty Images

#10. Jim Walton

– Estimated net worth: $57.9 billion
– Age: 74
– State of residence: Arkansas
– Source of wealth: Walmart

Like his siblings Alice and Rob, Jim Walton inherited a share of Walmart from his father. Today, he runs Arvest Bank, an Arkansas-based financial services company.

Former Mayor of New York Michael Bloomberg attending the opening night of "The Music Man" on Broadway at Winter Garden Theatre on February 10, 2022, in New York City.

Noam Galai // Getty Images

#9. Michael Bloomberg

– Estimated net worth: $76.8 billion
– Age: 80
– State of residence: New York
– Source of wealth: Bloomberg LP

In 1981, Michael Bloomberg founded the financial information company Bloomberg LP. With revenues of more than $9 billion, the company would later develop Bloomberg News and services for financial trading. Bloomberg also had a political career as mayor of New York City between 2002 and 2013.

Steve Ballmer speaking onstage during the 2018 New York Times Dealbook on November 1, 2018, in New York City.

Michael Cohen // Getty Images

#8. Steve Ballmer

– Estimated net worth: $83 billion
– Age: 66
– State of residence: Washington
– Source of wealth: Microsoft

Business tycoon Steve Ballmer began his career at Microsoft and became the company’s president in 1998, then CEO in 2000. He purchased the Los Angeles Clippers NBA franchise in 2014 for $2 billion.

Google co-founder Sergey Brin gesturing during a session of the World Economic Forum, on January 19, 2017, in Davos.

FABRICE COFFRINI // Getty Images

#7. Sergey Brin

– Estimated net worth: $89 billion
– Age: 49
– State of residence: California
– Source of wealth: Google

Sergey Brin runs Alphabet, the conglomerate organization best known for owning Google. Brin co-founded Google in 1998 with Larry Page after they met at Stanford University. Google owns 90% of the search engine market, bolstered by nonsearch products like Google Chrome and Google Home.

Larry Page speaking during the Fortune Global Forum at the Legion Of Honor on November 2, 2015, in San Francisco, California.

Kimberly White // Getty Images

#6. Larry Page

– Estimated net worth: $93 billion
– Age: 49
– State of residence: California
– Source of wealth: Google

Computer scientist Larry Page revolutionized the online search engine with the invention of Google alongside co-founder Sergey Brin. The two created the company in 1998 and later developed products such as Google Maps, the Pixel phone, and the Chromebook.

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Warren Buffett onstage during the Forbes Media Centennial Celebration at Pier 60 on September 19, 2017, in New York City.

Daniel Zuchnik // Getty Images

#5. Warren Buffett

– Estimated net worth: $97 billion
– Age: 92
– State of residence: Nebraska
– Source of wealth: Berkshire Hathaway

Known in the investment world as the “Oracle of Omaha,” Warren Buffett made a fortune investing in media, energy, and insurance through Berkshire Hathaway. The Nebraska native assumed control of the company in the 1960s. In 2006, Buffett announced he would be donating his fortune to charity.

Larry Ellison attending the Rebels With A Cause Gala 2019 at Lawrence J Ellison Institute for Transformative Medicine of USC on October 24, 2019, in Los Angeles, California.

Phillip Faraone // Getty Images

#4. Larry Ellison

– Estimated net worth: $101 billion
– Age: 78
– State of residence: Hawaii
– Source of wealth: software

Larry Ellison founded the database management system Oracle in 1977. He remains a board member of the company, which has expanded into cloud technology and is the second-largest software development firm behind Microsoft. Ellison is also a prominent philanthropist in cancer research.

Bill Gates attending the 2022 Time 100 Gala at Frederick P. Rose Hall, Jazz at the Lincoln Center on June 08, 2022, in New York City.

Taylor Hill // Getty Images

#3. Bill Gates

– Estimated net worth: $106 billion
– Age: 67
– State of residence: Washington
– Source of wealth: Microsoft

Along with Paul Allen, Bill Gates founded the technology company Microsoft in 1975. Years later, he stepped away from the company to pursue philanthropy with his wife. They later divorced, but the Bill & Melinda Gates Foundation remains focused on improving global health care and eradicating poverty. The foundation has a trust of more than $50 billion.

Jeff Bezos attending the Baby2Baby 10-Year Gala presented by Paul Mitchell at Pacific Design Center on November 13, 2021, in West Hollywood, California.

Emma McIntyre // Getty Images

#2. Jeff Bezos

– Estimated net worth: $151 billion
– Age: 58
– State of residence: Washington
– Source of wealth: Amazon

The tech entrepreneur Jeff Bezos is the first man ever to be worth more than $100 billion. He created the e-commerce platform Amazon, which has an annual revenue of more than $177 billion. Bezos also owns the Washington Post and the aerospace manufacturer Blue Origin.

Elon Musk speaking at the Tesla Giga Texas manufacturing "Cyber Rodeo" grand opening party in Austin, Texas, on April 7, 2022.

SUZANNE CORDEIRO // Getty Images

#1. Elon Musk

– Estimated net worth: $251 billion
– Age: 51
– State of residence: Texas
– Source of wealth: PayPal, Tesla, SpaceX

Elon Musk was born in South Africa and moved to California to pursue a Ph.D. in the mid-1990s. His first financial successes include the development of Zip2, an online city guide, and PayPal. In the early 2000s, he began developing electric cars with his company Tesla Motors. The Tesla Roadster starts at $200,000 and is the same car Musk sent to space with his SpaceX exploration program. In October 2022, he closed a controversial bid on the social media platform Twitter for a reported $44 billion and presently owns an estimated 82% of the company.

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10 tips for managing payroll for small business owners

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Buddy Punch compiled a list of ways for small business owners to set up and maintain a bulletproof payroll system from a collection of expert sources.  
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It’s essential to closely manage company payroll in a way that best suits your specific business needs and supports your employees. Given the complexities of state and federal taxes and the importance of paying your staff on time, keeping good records sets you up for success as your business grows—whether you’re bootstrapping a startup or managing a team.

Buddy Punch leveraged a collection of expert sources to compile a list of ways small business owners can create and maintain a bulletproof payroll system. Central to these insights is the goal of building a secure and accessible payroll system that protects data and allows employees to access their personal information.

Small businesses may have to outsource specific parts of their payroll systems to experienced professionals to ensure compliance, while smaller companies can delegate these tasks to an individual. Keep reading to learn more about wise management of payroll systems, from picking the right software to staying in compliance.

A human resources worker using a payroll software.

Kaspars Grinvalds // Shutterstock

Select appropriate payroll software

Payroll software is far from one-size-fits-all, and there are several factors at play to keep in mind while shopping around.

From the ease of use and features to integrations and support, there are plenty of options to choose from. It’s wise to start by considering the number of employees at play before making a decision. Will you or your team be able to keep up with the demand for updating employee records? Remember that if you have remote employees, you’ll be responsible for their state and local taxes.

In addition to the number of employees, small business owners should consider what benefits are offered, when payroll will be executed, and who will administer it. Other factors—including the payroll budget itself—are worth keeping in mind to ensure the system you select will be right for your company.

A human resources employee looking at their calendar.

Rawpixel.com // Shutterstock

Create a payroll calendar

No matter which kind you use, calendars are part of our daily lives—and there’s no exception for a small business. A payroll calendar considers the pay periods and can track important IRS tax filings. Knowing what is due at a particular time allows payroll managers to plan and schedule payments to the government promptly and effectively.

Using a payroll calendar also helps a business manage available funds for payroll each pay period. If you decide to DIY your payroll calendar, consider using a template to organize employee pay and tax filings.

A payroll administrator making calculations.

Rostislav_Sedlacek // Shutterstock

Hire a payroll administrator

While some small businesses can get by managing their own payroll, there are times when outsourcing or hiring a payroll specialist or administrator may be necessary. A payroll administrator will keep the business up to date on tax regulations and employee changes and updates.

When hiring for this role, look for people knowledgeable about payroll laws, regulations, and taxes. Knowing when to hire a payroll administrator will depend on how many employees you have and if you support remote workers. Whether you decide to outsource or do it yourself, you’ll need someone to provide quality checks on your processes.

An office employee working on payroll.

Natee Meepian // Shutterstock

Keep payroll and operating expenses in separate accounts

The adage “Don’t put all your eggs in one basket” applies to managing payroll for your small business. Keep your bank account for payroll separate from your general operating expenses. Doing so will help your accountant track transactions and keep records updated.

See if your current bank can add another account for payroll with no added costs. While it may appear easier to keep all of the accounts connected, you’ll have more to manage as your business grows. Start out with a payroll clearing account to maintain financial security and allocation.

A deli worker calculating their taxes.

mavo // Shutterstock

Never dip into payroll tax funds

There are huge implications with the IRS for not paying payroll taxes. Although some businesses may need the money to take care of other business expenses, it’s never a good idea to borrow from your business’s tax funds. One option that small business owners may consider is taking out a loan to cover miscellaneous expenses rather than using payroll funds and risk missing important tax payments.

If your company uses payroll tax funds to pay for other operations, it may be time for a business audit. Consider creating a rainy day fund for your business to discourage any payroll account dipping.

A binder of payroll records.

docstockmedia // Shutterstock

Document your payroll process

Sweat the small stuff. No matter the size of your small business, keeping good records will serve your business well in the long run.

From one employee to multiple, it’s critical to keep meticulous records. The IRS expects you to maintain payroll records for at least three years. A well-documented process will help your business comply with tax laws and keep track of your employees’ pay and updates.

If you are the sole employee of your business, make it a habit to record everything: This process will allow you to see the overall health of your business and allow for future planning.

An old stack of payroll records.

RAGMA IMAGES // Shutterstock

Develop a thorough timekeeping system

Setting up a good digital system to track your employees’ time is crucial in making your business more efficient. Accurate timekeeping will help with accounting and payroll records—and there are plenty of resources that make the process easier.

Some low-cost options work with other business tools to streamline the process of payroll compliance. Consider outsourcing payroll timekeeping to meet the demands of your growing workforce.

An employee taking a survey about payroll.

Andrey_Popov // Shutterstock

Talk to employees about what works and what doesn’t

For young businesses, polling employee preferences can help settle certain payroll options. Some workers prefer biweekly pay periods, but others—often hourly employees—may prefer to be paid weekly. Take the opportunity to ask your employees what works for them and structure your system accordingly.

A business owner writing a check based on payroll data stored in their computer.

NIKCOA // Shutterstock

Keep employee info well-organized and secure

Protecting small-business payroll data is just as important as protecting data files, and secure systems will do both. Employees can access their payroll system to update records and view pay stubs, which should be made available through payroll system training. Ensure the integrity of your business by protecting your employees’ data. Implementing a strong payroll system includes limiting who has access to sensitive employee data.

President Joe Biden signing the Paycheck Protection Program Extension Act of 2021 into law.

JIM WATSON // Getty Images

Keep up with state, local, and federal payroll rules

Staying updated on payroll rules can keep your business running smoothly without the stress of audits or fines. Payroll systems will manage this for you.

For a business without the capacity or expertise to track local and federal changes, business owners should consider outsourcing this work to a contractor who can. Subscribing to local and federal mailing lists may be useful to stay abreast of new updates.

This story originally appeared on Buddy Punch and was produced and
distributed in partnership with Stacker Studio.

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Are the days of ‘Big Tech’ on their way out?

“These are cost-cutting measures, but if you talk to people in tech, they’re sort of emotional, cultural resets as well,” explains tech reporter Peter Kafka in podcast.

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Silicon Valley is having a bit of a rough go lately.

Layoffs at some of the biggest tech companies — 10,000 at Amazon and 11,000 at Meta for starters — have hit the sector hard, and there’s an air of downsizing all around. This means that in addition to letting staff go, even all those perks that many startups and long-established companies alike have used to lure top tech talent — think offices with stocked fridges, gyms, and shuttle services — have been reined in. 

A recent episode of Vox’s podcast Today, Explained dove into what’s happening in the tech world, speaking to Peter Kafka, a tech reporter at Recode

Here are three highlights from the conversation:

On the current landscape as an “existential shift”

I think most people who are working in tech have only been there during boom times. The last real deflation in tech was all the way back in 2000, 2001. There’s almost no one working in tech now who was around for that. So if you’ve been working in tech, you’ve only known things going up and to the right. You got paid a lot. There were always companies who wanted to hire you away from the company you were at, so you got paid even more. You knew that you could leave Facebook or Google and go to a startup, and if that startup didn’t work, maybe it would get bought by Facebook or Google.

And all of that comes to a record-scratch stop this year.

On the lack of growth in the sector

Yes. There’s a bigger story that goes back a couple of decades. These tech companies, Google, Facebook, Amazon, and Apple all had crazy, crazy, crazy growth. They were selling tons of ads. They were selling tons of iPhones. They reflected a big change in the way the world used technology. They were at the front of that. They got rewarded for that.

But those companies aren’t growing at the same rate anymore. Many of them are pretty old now — or their main product is pretty old. The iPhone is 15 years old. Google’s main search ad business is 20 years old. YouTube is 15 years old, more or less.

On the “fable and myth” of Silicon Valley

Yeah. I don’t want to be pollyannaish about this because people are losing jobs. And people are going to have a harder time paying rent or mortgages or feeding their families. But it’s part real and part fable of Silicon Valley to have this creative destruction where old things get taken down. New, cool things get built in their place. It’s part of the fable and myth of Silicon Valley that has a great deal of truth to it as well. 

And so there’s lots of folks saying, “All right, we’re going to go make something new. By the way, we made a bunch of money in the last couple of years, the last 10 years. We can afford to not be working at a Big Tech company for a while. Let’s go cast around for a new idea.”

Read the interview transcript or listen to the episode

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