For many companies, payroll is the single largest expense. Just the basics of wages and salaries add up significantly.

But it doesn't stop there. Your payroll costs increase substantially when you add in vacations, FICA contributions, as well as unemployment, workers' compensation, health insurance and other fringe benefits. And then there's overtime — an expense that's often difficult to control.

If these costs aren't closely monitored and controlled, your family business could lose its competitive edge or, in a worst-case scenario, become so unprofitable that you have to sell or close.

Here's a list of suggestions that can help you cut some costs while still adequately compensating staff members for their contributions and skills:

This list is not all inclusive. Ask your payroll and accounting advisor about strategies best suited for your family business's situation.