When Does It Make Sense to Run Payroll In House?

At one time it may have made sense for your business to outsource your payroll processing, but have you analyzed the cost of continuing to do so lately?  Depending on the number of employees you have, the number of transactions you process, your pay frequency and the number of reports you require outsourcing can be extremely costly. If you are wondering whether you should bring payroll processing in house, then I urge you to consider the following questions.

  • Is someone in your organization tasked with calculating employee hours / salary each pay period?
  • Is someone responsible for gathering new employee information and entering it?
  • Is someone calculating and adjusting pay for vacation days, raises, unpaid leave, terminations?
  • Is someone responsible for preparing and submitting the payroll details to the outsource agency on a timely basis?  Via computer?
  • Is that person responsible for making sure employees are paid on time?
  • Is that person the contact for employees to go to if they have questions or concerns about their pay?
  • Is that person sorting through all the information after the payroll run to make sure all employee pay is accurate and accounted for?
  • Is that person the one who goes back and forth with the outsource agency to make corrections?
  • Is that person also making sure remittances are made to regulatory agencies?
  • Is that person performing all the year-end tasks including reconciling T-4’s?
  • Is that person paid a part-time or full-time salary?

So, if you answered “yes” to all these questions, what does the outsource agency do for you?  Not much more than computer processing, right?  And you pay them how much a year?  That cost is on top of what you are already paying your part-time or full-time person who is responsible for payroll accuracy, meeting all the deadlines and dealing with unhappy employees when the agency makes a processing error.  And who has control?   Not you.

If you are already using Microsoft Dynamics GP you now have the payroll processing software at your disposal for NO COST which would allow you to bring this function in house and eliminate those outsource fees.  What a quick and easy way to save money!! Contact us if you want to get started gaining control of your payroll process again.


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