Payroll Choices. Types of In-House Payroll 9/9/2014. Questions to Ask??? There are two options to getting payroll done in your Town/City

Transcription

1 Questions to Ask??? Payroll Choices There are two options to getting payroll done in your Town/City 1. First is In-House: Requires someone to process payroll, timesheets, taxes, quarterly payroll reports, end of the year taxes, process W-2 s, keep up with payroll tax laws 2. Outsourcing Payroll- hiring an outside company to like Paychex to process all payroll documents, taxes, submit quarterly and yearly reports, and process W-2 s Types of In-House Payroll 1. Old Fashioned Way- by hand 2. Quickbooks- Computer based 3. Payroll System tied into a General Ledger Systemcomputer based software- Master Meter, CSI, Nicholson Business Systems, Intuit 1

2 Types of Outsourced Payroll ADP Payroll Services Kronos Payroll Paychex Services Accuchex Services Pros and Cons of In-House Payroll There are many pros and cons to In-House payroll processing. Pros: Control over timesheets or time sources Able to double check pay and time before it is processed and overtime rates Control over when taxes are paid, reports are done Better control over vacation and sick time balances Mistakes or errors can be corrected before it is processed Pros and Cons Continued Quicker response to employees when payroll changes are needed Check and balances for payroll figures before checks/direct deposit is completed Able to set up multiple direct deposit accounts for employees 2

3 Cons: Have to have an employee capable of processing payroll, reports, taxes etc. Make sure that tax tables and new tax rates are uploaded if not there can be problems at year end Have to pay your own taxes via online and check for correctness Data entry of payroll Time to process payroll Liability of Payroll Limited Cost Pros and Cons of Outsourcing Pros: No liability as it resides on the company you chose Do not need an employee to process the payroll No need to pay taxes or worry about filing reports as they are done by the company Cons: Cost to the municipality, varies by payroll and number of employees Limited number of direct deposits Limited ways to check payroll before it is completed and processed No control over when taxes are paid or reports are uploaded Some companies have limited reports that can be accessed for audit and for workers compensation audits If there is severe weather may not get payroll in time as it is shipped via ups or fed ex 3

4 So Why Did we bring it back in? Ware Shoals outsourced its payroll for over 12 years. In 2009 it was decided to utilize our General Ledger/Payroll Software and process the payroll in house to save money. It was costing the Town of Ware Shoals an average of $5,000 a year to have our payroll outsourced for 20 employees. We had numerous problems with payroll being incorrect, overtime not being paid correctly, having to take time to call the payroll into the company, problems getting payroll on time when shipped, and communication problems with the company. Has it worked? YES! Payroll usually only takes about an hour or so to complete. All employees are on direct deposit so there are no paper checks printed, taxes and reports are done online Cost: $200 a year for software updates Better checks and balances before payroll is completed and reports uploaded So is it right for you? Look at cost for your municipality? Do you have the staff to handle payroll? Do you want to take on the liability? How many employees do you have? How much time will it take you? 4

5 Questions to Ask??? Payroll Choices There are two options to getting payroll done in your Town/City 1. First is In-House: Requires someone to process payroll, timesheets, taxes, quarterly payroll reports, end of the year taxes, process W-2 s, keep up with payroll tax laws 2. Outsourcing Payroll- hiring an outside company to like Paychex to process all payroll documents, taxes, submit quarterly and yearly reports, and process W-2 s Types of In-House Payroll 1. Old Fashioned Way- by hand 2. Quickbooks- Computer based 3. Payroll System tied into a General Ledger Systemcomputer based software- Master Meter, CSI, Nicholson Business Systems, Intuit 1

6 Types of Outsourced Payroll ADP Payroll Services Kronos Payroll Paychex Services Accuchex Services Pros and Cons of In-House Payroll There are many pros and cons to In-House payroll processing. Pros: Control over timesheets or time sources Able to double check pay and time before it is processed and overtime rates Control over when taxes are paid, reports are done Better control over vacation and sick time balances Mistakes or errors can be corrected before it is processed Pros and Cons Continued Quicker response to employees when payroll changes are needed Check and balances for payroll figures before checks/direct deposit is completed Able to set up multiple direct deposit accounts for employees 2

7 Cons: Have to have an employee capable of processing payroll, reports, taxes etc. Make sure that tax tables and new tax rates are uploaded if not there can be problems at year end Have to pay your own taxes via online and check for correctness Data entry of payroll Time to process payroll Liability of Payroll Limited Cost Pros and Cons of Outsourcing Pros: No liability as it resides on the company you chose Do not need an employee to process the payroll No need to pay taxes or worry about filing reports as they are done by the company Cons: Cost to the municipality, varies by payroll and number of employees Limited number of direct deposits Limited ways to check payroll before it is completed and processed No control over when taxes are paid or reports are uploaded Some companies have limited reports that can be accessed for audit and for workers compensation audits If there is severe weather may not get payroll in time as it is shipped via ups or fed ex 3

8 So Why Did we bring it back in? Ware Shoals outsourced its payroll for over 12 years. In 2009 it was decided to utilize our General Ledger/Payroll Software and process the payroll in house to save money. It was costing the Town of Ware Shoals an average of $5,000 a year to have our payroll outsourced for 20 employees. We had numerous problems with payroll being incorrect, overtime not being paid correctly, having to take time to call the payroll into the company, problems getting payroll on time when shipped, and communication problems with the company. Has it worked? YES! Payroll usually only takes about an hour or so to complete. All employees are on direct deposit so there are no paper checks printed, taxes and reports are done online Cost: $200 a year for software updates Better checks and balances before payroll is completed and reports uploaded So is it right for you? Look at cost for your municipality? Do you have the staff to handle payroll? Do you want to take on the liability? How many employees do you have? How much time will it take you? 4

9 Questions to Ask??? Payroll Choices There are two options to getting payroll done in your Town/City 1. First is In-House: Requires someone to process payroll, timesheets, taxes, quarterly payroll reports, end of the year taxes, process W-2 s, keep up with payroll tax laws 2. Outsourcing Payroll- hiring an outside company to like Paychex to process all payroll documents, taxes, submit quarterly and yearly reports, and process W-2 s Types of In-House Payroll 1. Old Fashioned Way- by hand 2. Quickbooks- Computer based 3. Payroll System tied into a General Ledger Systemcomputer based software- Master Meter, CSI, Nicholson Business Systems, Intuit 1

10 Types of Outsourced Payroll ADP Payroll Services Kronos Payroll Paychex Services Accuchex Services Pros and Cons of In-House Payroll There are many pros and cons to In-House payroll processing. Pros: Control over timesheets or time sources Able to double check pay and time before it is processed and overtime rates Control over when taxes are paid, reports are done Better control over vacation and sick time balances Mistakes or errors can be corrected before it is processed Pros and Cons Continued Quicker response to employees when payroll changes are needed Check and balances for payroll figures before checks/direct deposit is completed Able to set up multiple direct deposit accounts for employees 2

11 Cons: Have to have an employee capable of processing payroll, reports, taxes etc. Make sure that tax tables and new tax rates are uploaded if not there can be problems at year end Have to pay your own taxes via online and check for correctness Data entry of payroll Time to process payroll Liability of Payroll Limited Cost Pros and Cons of Outsourcing Pros: No liability as it resides on the company you chose Do not need an employee to process the payroll No need to pay taxes or worry about filing reports as they are done by the company Cons: Cost to the municipality, varies by payroll and number of employees Limited number of direct deposits Limited ways to check payroll before it is completed and processed No control over when taxes are paid or reports are uploaded Some companies have limited reports that can be accessed for audit and for workers compensation audits If there is severe weather may not get payroll in time as it is shipped via ups or fed ex 3

12 So Why Did we bring it back in? Ware Shoals outsourced its payroll for over 12 years. In 2009 it was decided to utilize our General Ledger/Payroll Software and process the payroll in house to save money. It was costing the Town of Ware Shoals an average of $5,000 a year to have our payroll outsourced for 20 employees. We had numerous problems with payroll being incorrect, overtime not being paid correctly, having to take time to call the payroll into the company, problems getting payroll on time when shipped, and communication problems with the company. Has it worked? YES! Payroll usually only takes about an hour or so to complete. All employees are on direct deposit so there are no paper checks printed, taxes and reports are done online Cost: $200 a year for software updates Better checks and balances before payroll is completed and reports uploaded So is it right for you? Look at cost for your municipality? Do you have the staff to handle payroll? Do you want to take on the liability? How many employees do you have? How much time will it take you? 4

13 Questions to Ask??? Payroll Choices There are two options to getting payroll done in your Town/City 1. First is In-House: Requires someone to process payroll, timesheets, taxes, quarterly payroll reports, end of the year taxes, process W-2 s, keep up with payroll tax laws 2. Outsourcing Payroll- hiring an outside company to like Paychex to process all payroll documents, taxes, submit quarterly and yearly reports, and process W-2 s Types of In-House Payroll 1. Old Fashioned Way- by hand 2. Quickbooks- Computer based 3. Payroll System tied into a General Ledger Systemcomputer based software- Master Meter, CSI, Nicholson Business Systems, Intuit 1

14 Types of Outsourced Payroll ADP Payroll Services Kronos Payroll Paychex Services Accuchex Services Pros and Cons of In-House Payroll There are many pros and cons to In-House payroll processing. Pros: Control over timesheets or time sources Able to double check pay and time before it is processed and overtime rates Control over when taxes are paid, reports are done Better control over vacation and sick time balances Mistakes or errors can be corrected before it is processed Pros and Cons Continued Quicker response to employees when payroll changes are needed Check and balances for payroll figures before checks/direct deposit is completed Able to set up multiple direct deposit accounts for employees 2

15 Cons: Have to have an employee capable of processing payroll, reports, taxes etc. Make sure that tax tables and new tax rates are uploaded if not there can be problems at year end Have to pay your own taxes via online and check for correctness Data entry of payroll Time to process payroll Liability of Payroll Limited Cost Pros and Cons of Outsourcing Pros: No liability as it resides on the company you chose Do not need an employee to process the payroll No need to pay taxes or worry about filing reports as they are done by the company Cons: Cost to the municipality, varies by payroll and number of employees Limited number of direct deposits Limited ways to check payroll before it is completed and processed No control over when taxes are paid or reports are uploaded Some companies have limited reports that can be accessed for audit and for workers compensation audits If there is severe weather may not get payroll in time as it is shipped via ups or fed ex 3

16 So Why Did we bring it back in? Ware Shoals outsourced its payroll for over 12 years. In 2009 it was decided to utilize our General Ledger/Payroll Software and process the payroll in house to save money. It was costing the Town of Ware Shoals an average of $5,000 a year to have our payroll outsourced for 20 employees. We had numerous problems with payroll being incorrect, overtime not being paid correctly, having to take time to call the payroll into the company, problems getting payroll on time when shipped, and communication problems with the company. Has it worked? YES! Payroll usually only takes about an hour or so to complete. All employees are on direct deposit so there are no paper checks printed, taxes and reports are done online Cost: $200 a year for software updates Better checks and balances before payroll is completed and reports uploaded So is it right for you? Look at cost for your municipality? Do you have the staff to handle payroll? Do you want to take on the liability? How many employees do you have? How much time will it take you? 4

17 Questions to Ask??? Payroll Choices There are two options to getting payroll done in your Town/City 1. First is In-House: Requires someone to process payroll, timesheets, taxes, quarterly payroll reports, end of the year taxes, process W-2 s, keep up with payroll tax laws 2. Outsourcing Payroll- hiring an outside company to like Paychex to process all payroll documents, taxes, submit quarterly and yearly reports, and process W-2 s Types of In-House Payroll 1. Old Fashioned Way- by hand 2. Quickbooks- Computer based 3. Payroll System tied into a General Ledger Systemcomputer based software- Master Meter, CSI, Nicholson Business Systems, Intuit 1

18 Types of Outsourced Payroll ADP Payroll Services Kronos Payroll Paychex Services Accuchex Services Pros and Cons of In-House Payroll There are many pros and cons to In-House payroll processing. Pros: Control over timesheets or time sources Able to double check pay and time before it is processed and overtime rates Control over when taxes are paid, reports are done Better control over vacation and sick time balances Mistakes or errors can be corrected before it is processed Pros and Cons Continued Quicker response to employees when payroll changes are needed Check and balances for payroll figures before checks/direct deposit is completed Able to set up multiple direct deposit accounts for employees 2

19 Cons: Have to have an employee capable of processing payroll, reports, taxes etc. Make sure that tax tables and new tax rates are uploaded if not there can be problems at year end Have to pay your own taxes via online and check for correctness Data entry of payroll Time to process payroll Liability of Payroll Limited Cost Pros and Cons of Outsourcing Pros: No liability as it resides on the company you chose Do not need an employee to process the payroll No need to pay taxes or worry about filing reports as they are done by the company Cons: Cost to the municipality, varies by payroll and number of employees Limited number of direct deposits Limited ways to check payroll before it is completed and processed No control over when taxes are paid or reports are uploaded Some companies have limited reports that can be accessed for audit and for workers compensation audits If there is severe weather may not get payroll in time as it is shipped via ups or fed ex 3

20 So Why Did we bring it back in? Ware Shoals outsourced its payroll for over 12 years. In 2009 it was decided to utilize our General Ledger/Payroll Software and process the payroll in house to save money. It was costing the Town of Ware Shoals an average of $5,000 a year to have our payroll outsourced for 20 employees. We had numerous problems with payroll being incorrect, overtime not being paid correctly, having to take time to call the payroll into the company, problems getting payroll on time when shipped, and communication problems with the company. Has it worked? YES! Payroll usually only takes about an hour or so to complete. All employees are on direct deposit so there are no paper checks printed, taxes and reports are done online Cost: $200 a year for software updates Better checks and balances before payroll is completed and reports uploaded So is it right for you? Look at cost for your municipality? Do you have the staff to handle payroll? Do you want to take on the liability? How many employees do you have? How much time will it take you? 4

21 Questions to Ask??? Payroll Choices There are two options to getting payroll done in your Town/City 1. First is In-House: Requires someone to process payroll, timesheets, taxes, quarterly payroll reports, end of the year taxes, process W-2 s, keep up with payroll tax laws 2. Outsourcing Payroll- hiring an outside company to like Paychex to process all payroll documents, taxes, submit quarterly and yearly reports, and process W-2 s Types of In-House Payroll 1. Old Fashioned Way- by hand 2. Quickbooks- Computer based 3. Payroll System tied into a General Ledger Systemcomputer based software- Master Meter, CSI, Nicholson Business Systems, Intuit 1

22 Types of Outsourced Payroll ADP Payroll Services Kronos Payroll Paychex Services Accuchex Services Pros and Cons of In-House Payroll There are many pros and cons to In-House payroll processing. Pros: Control over timesheets or time sources Able to double check pay and time before it is processed and overtime rates Control over when taxes are paid, reports are done Better control over vacation and sick time balances Mistakes or errors can be corrected before it is processed Pros and Cons Continued Quicker response to employees when payroll changes are needed Check and balances for payroll figures before checks/direct deposit is completed Able to set up multiple direct deposit accounts for employees 2

23 Cons: Have to have an employee capable of processing payroll, reports, taxes etc. Make sure that tax tables and new tax rates are uploaded if not there can be problems at year end Have to pay your own taxes via online and check for correctness Data entry of payroll Time to process payroll Liability of Payroll Limited Cost Pros and Cons of Outsourcing Pros: No liability as it resides on the company you chose Do not need an employee to process the payroll No need to pay taxes or worry about filing reports as they are done by the company Cons: Cost to the municipality, varies by payroll and number of employees Limited number of direct deposits Limited ways to check payroll before it is completed and processed No control over when taxes are paid or reports are uploaded Some companies have limited reports that can be accessed for audit and for workers compensation audits If there is severe weather may not get payroll in time as it is shipped via ups or fed ex 3

24 So Why Did we bring it back in? Ware Shoals outsourced its payroll for over 12 years. In 2009 it was decided to utilize our General Ledger/Payroll Software and process the payroll in house to save money. It was costing the Town of Ware Shoals an average of $5,000 a year to have our payroll outsourced for 20 employees. We had numerous problems with payroll being incorrect, overtime not being paid correctly, having to take time to call the payroll into the company, problems getting payroll on time when shipped, and communication problems with the company. Has it worked? YES! Payroll usually only takes about an hour or so to complete. All employees are on direct deposit so there are no paper checks printed, taxes and reports are done online Cost: $200 a year for software updates Better checks and balances before payroll is completed and reports uploaded So is it right for you? Look at cost for your municipality? Do you have the staff to handle payroll? Do you want to take on the liability? How many employees do you have? How much time will it take you? 4

25 Questions to Ask??? Payroll Choices There are two options to getting payroll done in your Town/City 1. First is In-House: Requires someone to process payroll, timesheets, taxes, quarterly payroll reports, end of the year taxes, process W-2 s, keep up with payroll tax laws 2. Outsourcing Payroll- hiring an outside company to like Paychex to process all payroll documents, taxes, submit quarterly and yearly reports, and process W-2 s Types of In-House Payroll 1. Old Fashioned Way- by hand 2. Quickbooks- Computer based 3. Payroll System tied into a General Ledger Systemcomputer based software- Master Meter, CSI, Nicholson Business Systems, Intuit 1

26 Types of Outsourced Payroll ADP Payroll Services Kronos Payroll Paychex Services Accuchex Services Pros and Cons of In-House Payroll There are many pros and cons to In-House payroll processing. Pros: Control over timesheets or time sources Able to double check pay and time before it is processed and overtime rates Control over when taxes are paid, reports are done Better control over vacation and sick time balances Mistakes or errors can be corrected before it is processed Pros and Cons Continued Quicker response to employees when payroll changes are needed Check and balances for payroll figures before checks/direct deposit is completed Able to set up multiple direct deposit accounts for employees 2

27 Cons: Have to have an employee capable of processing payroll, reports, taxes etc. Make sure that tax tables and new tax rates are uploaded if not there can be problems at year end Have to pay your own taxes via online and check for correctness Data entry of payroll Time to process payroll Liability of Payroll Limited Cost Pros and Cons of Outsourcing Pros: No liability as it resides on the company you chose Do not need an employee to process the payroll No need to pay taxes or worry about filing reports as they are done by the company Cons: Cost to the municipality, varies by payroll and number of employees Limited number of direct deposits Limited ways to check payroll before it is completed and processed No control over when taxes are paid or reports are uploaded Some companies have limited reports that can be accessed for audit and for workers compensation audits If there is severe weather may not get payroll in time as it is shipped via ups or fed ex 3

28 So Why Did we bring it back in? Ware Shoals outsourced its payroll for over 12 years. In 2009 it was decided to utilize our General Ledger/Payroll Software and process the payroll in house to save money. It was costing the Town of Ware Shoals an average of $5,000 a year to have our payroll outsourced for 20 employees. We had numerous problems with payroll being incorrect, overtime not being paid correctly, having to take time to call the payroll into the company, problems getting payroll on time when shipped, and communication problems with the company. Has it worked? YES! Payroll usually only takes about an hour or so to complete. All employees are on direct deposit so there are no paper checks printed, taxes and reports are done online Cost: $200 a year for software updates Better checks and balances before payroll is completed and reports uploaded So is it right for you? Look at cost for your municipality? Do you have the staff to handle payroll? Do you want to take on the liability? How many employees do you have? How much time will it take you? 4

29 Questions to Ask??? Payroll Choices There are two options to getting payroll done in your Town/City 1. First is In-House: Requires someone to process payroll, timesheets, taxes, quarterly payroll reports, end of the year taxes, process W-2 s, keep up with payroll tax laws 2. Outsourcing Payroll- hiring an outside company to like Paychex to process all payroll documents, taxes, submit quarterly and yearly reports, and process W-2 s Types of In-House Payroll 1. Old Fashioned Way- by hand 2. Quickbooks- Computer based 3. Payroll System tied into a General Ledger Systemcomputer based software- Master Meter, CSI, Nicholson Business Systems, Intuit 1

30 Types of Outsourced Payroll ADP Payroll Services Kronos Payroll Paychex Services Accuchex Services Pros and Cons of In-House Payroll There are many pros and cons to In-House payroll processing. Pros: Control over timesheets or time sources Able to double check pay and time before it is processed and overtime rates Control over when taxes are paid, reports are done Better control over vacation and sick time balances Mistakes or errors can be corrected before it is processed Pros and Cons Continued Quicker response to employees when payroll changes are needed Check and balances for payroll figures before checks/direct deposit is completed Able to set up multiple direct deposit accounts for employees 2

31 Cons: Have to have an employee capable of processing payroll, reports, taxes etc. Make sure that tax tables and new tax rates are uploaded if not there can be problems at year end Have to pay your own taxes via online and check for correctness Data entry of payroll Time to process payroll Liability of Payroll Limited Cost Pros and Cons of Outsourcing Pros: No liability as it resides on the company you chose Do not need an employee to process the payroll No need to pay taxes or worry about filing reports as they are done by the company Cons: Cost to the municipality, varies by payroll and number of employees Limited number of direct deposits Limited ways to check payroll before it is completed and processed No control over when taxes are paid or reports are uploaded Some companies have limited reports that can be accessed for audit and for workers compensation audits If there is severe weather may not get payroll in time as it is shipped via ups or fed ex 3

32 So Why Did we bring it back in? Ware Shoals outsourced its payroll for over 12 years. In 2009 it was decided to utilize our General Ledger/Payroll Software and process the payroll in house to save money. It was costing the Town of Ware Shoals an average of $5,000 a year to have our payroll outsourced for 20 employees. We had numerous problems with payroll being incorrect, overtime not being paid correctly, having to take time to call the payroll into the company, problems getting payroll on time when shipped, and communication problems with the company. Has it worked? YES! Payroll usually only takes about an hour or so to complete. All employees are on direct deposit so there are no paper checks printed, taxes and reports are done online Cost: $200 a year for software updates Better checks and balances before payroll is completed and reports uploaded So is it right for you? Look at cost for your municipality? Do you have the staff to handle payroll? Do you want to take on the liability? How many employees do you have? How much time will it take you? 4

33 Questions to Ask??? Payroll Choices There are two options to getting payroll done in your Town/City 1. First is In-House: Requires someone to process payroll, timesheets, taxes, quarterly payroll reports, end of the year taxes, process W-2 s, keep up with payroll tax laws 2. Outsourcing Payroll- hiring an outside company to like Paychex to process all payroll documents, taxes, submit quarterly and yearly reports, and process W-2 s Types of In-House Payroll 1. Old Fashioned Way- by hand 2. Quickbooks- Computer based 3. Payroll System tied into a General Ledger Systemcomputer based software- Master Meter, CSI, Nicholson Business Systems, Intuit 1

34 Types of Outsourced Payroll ADP Payroll Services Kronos Payroll Paychex Services Accuchex Services Pros and Cons of In-House Payroll There are many pros and cons to In-House payroll processing. Pros: Control over timesheets or time sources Able to double check pay and time before it is processed and overtime rates Control over when taxes are paid, reports are done Better control over vacation and sick time balances Mistakes or errors can be corrected before it is processed Pros and Cons Continued Quicker response to employees when payroll changes are needed Check and balances for payroll figures before checks/direct deposit is completed Able to set up multiple direct deposit accounts for employees 2

35 Cons: Have to have an employee capable of processing payroll, reports, taxes etc. Make sure that tax tables and new tax rates are uploaded if not there can be problems at year end Have to pay your own taxes via online and check for correctness Data entry of payroll Time to process payroll Liability of Payroll Limited Cost Pros and Cons of Outsourcing Pros: No liability as it resides on the company you chose Do not need an employee to process the payroll No need to pay taxes or worry about filing reports as they are done by the company Cons: Cost to the municipality, varies by payroll and number of employees Limited number of direct deposits Limited ways to check payroll before it is completed and processed No control over when taxes are paid or reports are uploaded Some companies have limited reports that can be accessed for audit and for workers compensation audits If there is severe weather may not get payroll in time as it is shipped via ups or fed ex 3

36 So Why Did we bring it back in? Ware Shoals outsourced its payroll for over 12 years. In 2009 it was decided to utilize our General Ledger/Payroll Software and process the payroll in house to save money. It was costing the Town of Ware Shoals an average of $5,000 a year to have our payroll outsourced for 20 employees. We had numerous problems with payroll being incorrect, overtime not being paid correctly, having to take time to call the payroll into the company, problems getting payroll on time when shipped, and communication problems with the company. Has it worked? YES! Payroll usually only takes about an hour or so to complete. All employees are on direct deposit so there are no paper checks printed, taxes and reports are done online Cost: $200 a year for software updates Better checks and balances before payroll is completed and reports uploaded So is it right for you? Look at cost for your municipality? Do you have the staff to handle payroll? Do you want to take on the liability? How many employees do you have? How much time will it take you? 4

37 Questions to Ask??? Payroll Choices There are two options to getting payroll done in your Town/City 1. First is In-House: Requires someone to process payroll, timesheets, taxes, quarterly payroll reports, end of the year taxes, process W-2 s, keep up with payroll tax laws 2. Outsourcing Payroll- hiring an outside company to like Paychex to process all payroll documents, taxes, submit quarterly and yearly reports, and process W-2 s Types of In-House Payroll 1. Old Fashioned Way- by hand 2. Quickbooks- Computer based 3. Payroll System tied into a General Ledger Systemcomputer based software- Master Meter, CSI, Nicholson Business Systems, Intuit 1

38 Types of Outsourced Payroll ADP Payroll Services Kronos Payroll Paychex Services Accuchex Services Pros and Cons of In-House Payroll There are many pros and cons to In-House payroll processing. Pros: Control over timesheets or time sources Able to double check pay and time before it is processed and overtime rates Control over when taxes are paid, reports are done Better control over vacation and sick time balances Mistakes or errors can be corrected before it is processed Pros and Cons Continued Quicker response to employees when payroll changes are needed Check and balances for payroll figures before checks/direct deposit is completed Able to set up multiple direct deposit accounts for employees 2

39 Cons: Have to have an employee capable of processing payroll, reports, taxes etc. Make sure that tax tables and new tax rates are uploaded if not there can be problems at year end Have to pay your own taxes via online and check for correctness Data entry of payroll Time to process payroll Liability of Payroll Limited Cost Pros and Cons of Outsourcing Pros: No liability as it resides on the company you chose Do not need an employee to process the payroll No need to pay taxes or worry about filing reports as they are done by the company Cons: Cost to the municipality, varies by payroll and number of employees Limited number of direct deposits Limited ways to check payroll before it is completed and processed No control over when taxes are paid or reports are uploaded Some companies have limited reports that can be accessed for audit and for workers compensation audits If there is severe weather may not get payroll in time as it is shipped via ups or fed ex 3

40 So Why Did we bring it back in? Ware Shoals outsourced its payroll for over 12 years. In 2009 it was decided to utilize our General Ledger/Payroll Software and process the payroll in house to save money. It was costing the Town of Ware Shoals an average of $5,000 a year to have our payroll outsourced for 20 employees. We had numerous problems with payroll being incorrect, overtime not being paid correctly, having to take time to call the payroll into the company, problems getting payroll on time when shipped, and communication problems with the company. Has it worked? YES! Payroll usually only takes about an hour or so to complete. All employees are on direct deposit so there are no paper checks printed, taxes and reports are done online Cost: $200 a year for software updates Better checks and balances before payroll is completed and reports uploaded So is it right for you? Look at cost for your municipality? Do you have the staff to handle payroll? Do you want to take on the liability? How many employees do you have? How much time will it take you? 4

41 Questions to Ask??? Payroll Choices There are two options to getting payroll done in your Town/City 1. First is In-House: Requires someone to process payroll, timesheets, taxes, quarterly payroll reports, end of the year taxes, process W-2 s, keep up with payroll tax laws 2. Outsourcing Payroll- hiring an outside company to like Paychex to process all payroll documents, taxes, submit quarterly and yearly reports, and process W-2 s Types of In-House Payroll 1. Old Fashioned Way- by hand 2. Quickbooks- Computer based 3. Payroll System tied into a General Ledger Systemcomputer based software- Master Meter, CSI, Nicholson Business Systems, Intuit 1

42 Types of Outsourced Payroll ADP Payroll Services Kronos Payroll Paychex Services Accuchex Services Pros and Cons of In-House Payroll There are many pros and cons to In-House payroll processing. Pros: Control over timesheets or time sources Able to double check pay and time before it is processed and overtime rates Control over when taxes are paid, reports are done Better control over vacation and sick time balances Mistakes or errors can be corrected before it is processed Pros and Cons Continued Quicker response to employees when payroll changes are needed Check and balances for payroll figures before checks/direct deposit is completed Able to set up multiple direct deposit accounts for employees 2

43 Cons: Have to have an employee capable of processing payroll, reports, taxes etc. Make sure that tax tables and new tax rates are uploaded if not there can be problems at year end Have to pay your own taxes via online and check for correctness Data entry of payroll Time to process payroll Liability of Payroll Limited Cost Pros and Cons of Outsourcing Pros: No liability as it resides on the company you chose Do not need an employee to process the payroll No need to pay taxes or worry about filing reports as they are done by the company Cons: Cost to the municipality, varies by payroll and number of employees Limited number of direct deposits Limited ways to check payroll before it is completed and processed No control over when taxes are paid or reports are uploaded Some companies have limited reports that can be accessed for audit and for workers compensation audits If there is severe weather may not get payroll in time as it is shipped via ups or fed ex 3

44 So Why Did we bring it back in? Ware Shoals outsourced its payroll for over 12 years. In 2009 it was decided to utilize our General Ledger/Payroll Software and process the payroll in house to save money. It was costing the Town of Ware Shoals an average of $5,000 a year to have our payroll outsourced for 20 employees. We had numerous problems with payroll being incorrect, overtime not being paid correctly, having to take time to call the payroll into the company, problems getting payroll on time when shipped, and communication problems with the company. Has it worked? YES! Payroll usually only takes about an hour or so to complete. All employees are on direct deposit so there are no paper checks printed, taxes and reports are done online Cost: $200 a year for software updates Better checks and balances before payroll is completed and reports uploaded So is it right for you? Look at cost for your municipality? Do you have the staff to handle payroll? Do you want to take on the liability? How many employees do you have? How much time will it take you? 4

45 Questions to Ask??? Payroll Choices There are two options to getting payroll done in your Town/City 1. First is In-House: Requires someone to process payroll, timesheets, taxes, quarterly payroll reports, end of the year taxes, process W-2 s, keep up with payroll tax laws 2. Outsourcing Payroll- hiring an outside company to like Paychex to process all payroll documents, taxes, submit quarterly and yearly reports, and process W-2 s Types of In-House Payroll 1. Old Fashioned Way- by hand 2. Quickbooks- Computer based 3. Payroll System tied into a General Ledger Systemcomputer based software- Master Meter, CSI, Nicholson Business Systems, Intuit 1

46 Types of Outsourced Payroll ADP Payroll Services Kronos Payroll Paychex Services Accuchex Services Pros and Cons of In-House Payroll There are many pros and cons to In-House payroll processing. Pros: Control over timesheets or time sources Able to double check pay and time before it is processed and overtime rates Control over when taxes are paid, reports are done Better control over vacation and sick time balances Mistakes or errors can be corrected before it is processed Pros and Cons Continued Quicker response to employees when payroll changes are needed Check and balances for payroll figures before checks/direct deposit is completed Able to set up multiple direct deposit accounts for employees 2

47 Cons: Have to have an employee capable of processing payroll, reports, taxes etc. Make sure that tax tables and new tax rates are uploaded if not there can be problems at year end Have to pay your own taxes via online and check for correctness Data entry of payroll Time to process payroll Liability of Payroll Limited Cost Pros and Cons of Outsourcing Pros: No liability as it resides on the company you chose Do not need an employee to process the payroll No need to pay taxes or worry about filing reports as they are done by the company Cons: Cost to the municipality, varies by payroll and number of employees Limited number of direct deposits Limited ways to check payroll before it is completed and processed No control over when taxes are paid or reports are uploaded Some companies have limited reports that can be accessed for audit and for workers compensation audits If there is severe weather may not get payroll in time as it is shipped via ups or fed ex 3

48 9/9/2014 So Why Did we bring it back in? Ware Shoals outsourced its payroll for over 12 years. In 2009 it was decided to utilize our General Ledger/Payroll Software and process the payroll in house to save money. It was costing the Town of Ware Shoals an average of $5,000 a year to have our payroll outsourced for 20 employees. We had numerous problems with payroll being incorrect, overtime not being paid correctly, having to take time to call the payroll into the company, problems getting payroll on time when shipped, and communication problems with the company. Has it worked? YES! Payroll usually only takes about an hour or so to complete. All employees are on direct deposit so there are no paper checks printed, taxes and reports are done online Cost: $200 a year for software updates Better checks and balances before payroll is completed and reports uploaded So is it right for you? Look at cost for your municipality? Do you have the staff to handle payroll? Do you want to take on the liability? How many employees do you have? How much time will it take you? 4

49 9/9/2014 Questions to Ask??? Payroll Choices There are two options to getting payroll done in your Town/City First is In-House: Requires someone to process payroll, timesheets, taxes, quarterly payroll reports, end of the year taxes, process W-2 s, keep up with payroll tax laws 2. Outsourcing Payroll- hiring an outside company to like Paychex to process all payroll documents, taxes, submit quarterly and yearly reports, and process W-2 s 1. Types of In-House Payroll 1. Old Fashioned Way- by hand 2. Quickbooks- Computer based 3. Payroll System tied into a General Ledger Systemcomputer based software- Master Meter, CSI, Nicholson Business Systems, Intuit 1

50 9/9/2014 Types of Outsourced Payroll ADP Payroll Services Kronos Payroll Paychex Services Accuchex Services Pros and Cons of In-House Payroll There are many pros and cons to In-House payroll processing. Pros: Control over timesheets or time sources Able to double check pay and time before it is processed and overtime rates Control over when taxes are paid, reports are done Better control over vacation and sick time balances Mistakes or errors can be corrected before it is processed Pros and Cons Continued Quicker response to employees when payroll changes are needed Check and balances for payroll figures before checks/direct deposit is completed Able to set up multiple direct deposit accounts for employees 2

51 9/9/2014 Cons: Have to have an employee capable of processing payroll, reports, taxes etc. Make sure that tax tables and new tax rates are uploaded if not there can be problems at year end Have to pay your own taxes via online and check for correctness Data entry of payroll Time to process payroll Liability of Payroll Limited Cost Pros and Cons of Outsourcing Pros: No liability as it resides on the company you chose Do not need an employee to process the payroll No need to pay taxes or worry about filing reports as they are done by the company Cons: Cost to the municipality, varies by payroll and number of employees Limited number of direct deposits Limited ways to check payroll before it is completed and processed No control over when taxes are paid or reports are uploaded Some companies have limited reports that can be accessed for audit and for workers compensation audits If there is severe weather may not get payroll in time as it is shipped via ups or fed ex 3

52 9/9/2014 So Why Did we bring it back in? Ware Shoals outsourced its payroll for over 12 years. In 2009 it was decided to utilize our General Ledger/Payroll Software and process the payroll in house to save money. It was costing the Town of Ware Shoals an average of $5,000 a year to have our payroll outsourced for 20 employees. We had numerous problems with payroll being incorrect, overtime not being paid correctly, having to take time to call the payroll into the company, problems getting payroll on time when shipped, and communication problems with the company. Has it worked? YES! Payroll usually only takes about an hour or so to complete. All employees are on direct deposit so there are no paper checks printed, taxes and reports are done online Cost: $200 a year for software updates Better checks and balances before payroll is completed and reports uploaded So is it right for you? Look at cost for your municipality? Do you have the staff to handle payroll? Do you want to take on the liability? How many employees do you have? How much time will it take you? 4

53 9/9/2014 Questions to Ask??? Payroll Choices There are two options to getting payroll done in your Town/City First is In-House: Requires someone to process payroll, timesheets, taxes, quarterly payroll reports, end of the year taxes, process W-2 s, keep up with payroll tax laws 2. Outsourcing Payroll- hiring an outside company to like Paychex to process all payroll documents, taxes, submit quarterly and yearly reports, and process W-2 s 1. Types of In-House Payroll 1. Old Fashioned Way- by hand 2. Quickbooks- Computer based 3. Payroll System tied into a General Ledger Systemcomputer based software- Master Meter, CSI, Nicholson Business Systems, Intuit 1

54 9/9/2014 Types of Outsourced Payroll ADP Payroll Services Kronos Payroll Paychex Services Accuchex Services Pros and Cons of In-House Payroll There are many pros and cons to In-House payroll processing. Pros: Control over timesheets or time sources Able to double check pay and time before it is processed and overtime rates Control over when taxes are paid, reports are done Better control over vacation and sick time balances Mistakes or errors can be corrected before it is processed Pros and Cons Continued Quicker response to employees when payroll changes are needed Check and balances for payroll figures before checks/direct deposit is completed Able to set up multiple direct deposit accounts for employees 2

55 9/9/2014 Cons: Have to have an employee capable of processing payroll, reports, taxes etc. Make sure that tax tables and new tax rates are uploaded if not there can be problems at year end Have to pay your own taxes via online and check for correctness Data entry of payroll Time to process payroll Liability of Payroll Limited Cost Pros and Cons of Outsourcing Pros: No liability as it resides on the company you chose Do not need an employee to process the payroll No need to pay taxes or worry about filing reports as they are done by the company Cons: Cost to the municipality, varies by payroll and number of employees Limited number of direct deposits Limited ways to check payroll before it is completed and processed No control over when taxes are paid or reports are uploaded Some companies have limited reports that can be accessed for audit and for workers compensation audits If there is severe weather may not get payroll in time as it is shipped via ups or fed ex 3

56 9/9/2014 So Why Did we bring it back in? Ware Shoals outsourced its payroll for over 12 years. In 2009 it was decided to utilize our General Ledger/Payroll Software and process the payroll in house to save money. It was costing the Town of Ware Shoals an average of $5,000 a year to have our payroll outsourced for 20 employees. We had numerous problems with payroll being incorrect, overtime not being paid correctly, having to take time to call the payroll into the company, problems getting payroll on time when shipped, and communication problems with the company. Has it worked? YES! Payroll usually only takes about an hour or so to complete. All employees are on direct deposit so there are no paper checks printed, taxes and reports are done online Cost: $200 a year for software updates Better checks and balances before payroll is completed and reports uploaded So is it right for you? Look at cost for your municipality? Do you have the staff to handle payroll? Do you want to take on the liability? How many employees do you have? How much time will it take you? 4

57 9/9/2014 Questions to Ask??? Payroll Choices There are two options to getting payroll done in your Town/City First is In-House: Requires someone to process payroll, timesheets, taxes, quarterly payroll reports, end of the year taxes, process W-2 s, keep up with payroll tax laws 2. Outsourcing Payroll- hiring an outside company to like Paychex to process all payroll documents, taxes, submit quarterly and yearly reports, and process W-2 s 1. Types of In-House Payroll 1. Old Fashioned Way- by hand 2. Quickbooks- Computer based 3. Payroll System tied into a General Ledger Systemcomputer based software- Master Meter, CSI, Nicholson Business Systems, Intuit 1

58 9/9/2014 Types of Outsourced Payroll ADP Payroll Services Kronos Payroll Paychex Services Accuchex Services Pros and Cons of In-House Payroll There are many pros and cons to In-House payroll processing. Pros: Control over timesheets or time sources Able to double check pay and time before it is processed and overtime rates Control over when taxes are paid, reports are done Better control over vacation and sick time balances Mistakes or errors can be corrected before it is processed Pros and Cons Continued Quicker response to employees when payroll changes are needed Check and balances for payroll figures before checks/direct deposit is completed Able to set up multiple direct deposit accounts for employees 2

59 9/9/2014 Cons: Have to have an employee capable of processing payroll, reports, taxes etc. Make sure that tax tables and new tax rates are uploaded if not there can be problems at year end Have to pay your own taxes via online and check for correctness Data entry of payroll Time to process payroll Liability of Payroll Limited Cost Pros and Cons of Outsourcing Pros: No liability as it resides on the company you chose Do not need an employee to process the payroll No need to pay taxes or worry about filing reports as they are done by the company Cons: Cost to the municipality, varies by payroll and number of employees Limited number of direct deposits Limited ways to check payroll before it is completed and processed No control over when taxes are paid or reports are uploaded Some companies have limited reports that can be accessed for audit and for workers compensation audits If there is severe weather may not get payroll in time as it is shipped via ups or fed ex 3