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Started By
Message
Outsourcing Payroll... Yay or Nay?
Posted on 6/7/16 at 4:20 pm
Posted on 6/7/16 at 4:20 pm
Try to keep it short:
~ 35 employees
~ Direct Deposit, Internet Access, Pay Stubs, Tax Breakdown, the works are needed.
Does anyone with a similar business size recommend outsourcing payroll?
I am asking because the CEO has been considering doing this at my place of work. I will be promoted to CFO within the next few years and I don't want the retiring CFO's duties lessoned in the meantime. (Unless they are given to me) I realize the smart business owner is going to want to create as big of a salary gap as he can get away with and pocket the difference once I am promoted. I'm trying to be proactive and beat this shite at every level I can, but nothing I am researching is very transparent. Give me your horror stories and worst case scenarios please. If you have great experiences with them, please get out of my thread.
~ 35 employees
~ Direct Deposit, Internet Access, Pay Stubs, Tax Breakdown, the works are needed.
Does anyone with a similar business size recommend outsourcing payroll?
I am asking because the CEO has been considering doing this at my place of work. I will be promoted to CFO within the next few years and I don't want the retiring CFO's duties lessoned in the meantime. (Unless they are given to me) I realize the smart business owner is going to want to create as big of a salary gap as he can get away with and pocket the difference once I am promoted. I'm trying to be proactive and beat this shite at every level I can, but nothing I am researching is very transparent. Give me your horror stories and worst case scenarios please. If you have great experiences with them, please get out of my thread.
12
Posted on 6/7/16 at 4:37 pm to Mr. Wayne
So you want your company to go with a possibly more expensive option. Sounds like solid CFO material to me.
Posted on 6/7/16 at 4:46 pm to southernelite
quote:
So you want your company to go with a possibly more expensive option. Sounds like solid CFO material to me.
I wouldn't be asking if I didn't care what the numbers are. My hope is that they are high enough to justify keeping payroll in house. Even if it is slightly cheaper that doesn't mean it's in the best interest of the company considering our typical operations. One time adjustments, paying an employee a day early, etc. all come into play in a decision like this. I will analyze the hell out of this, but I will be honest with my boss if it is better in the long run.
Posted on 6/7/16 at 4:51 pm to Mr. Wayne
quote:
Does anyone with a similar business size recommend outsourcing payroll?
The software to do payroll and withholding is easy to use. I don't want my payrolls subject to some blabber mouth, becuase my payroll is included.
I do this myself. Two people have access to the banking, myself and my partner.
Employees have access to sweep the account, or make payments, but only to the vendors I've given them access to.
Personal preference. My banking and payroll are my business. I'm not hiring a country club firm to do it, so everyone at the country clubs knows what I pay myself.
Slightly more work, but this also prevents an employee stealing from me. And our management system makes this function easy. I run payroll, payables, balance sheet and income statement monthly. Management system reconciles the bank accounts.
But clearly your end goal and my end goal are different.
Posted on 6/7/16 at 4:52 pm to Mr. Wayne
Yes absolutely outsource payroll. CFO has way more to worry about than payroll and payroll taxes. Not knowing that makes me think you probably won't be CFO
Posted on 6/7/16 at 4:52 pm to Mr. Wayne
Sorry, just seems like you're looking for an issue to not use, that's the vibe your post gives off.
There's a poster who is a sales rep for a payroll company. I could have him email you if you want.
There's a poster who is a sales rep for a payroll company. I could have him email you if you want.
Posted on 6/7/16 at 4:57 pm to southernelite
Name of the company?
Posted on 6/7/16 at 5:01 pm to Iowa Golfer
Current CFO and CEO are only two to know salaries. I think it's important to mention that the titles I use are arbitrary and this is for a LLC. CEO/Owner invests how he wants. I hope to advise him more than our current does in the future.
Posted on 6/7/16 at 5:03 pm to Mr. Wayne
Paychex. He wouldn't be your rep, though.
Posted on 6/7/16 at 5:10 pm to Mr. Wayne
You sound like a prick
Posted on 6/7/16 at 7:10 pm to Mr. Wayne
Company I deal with takes all liability for any mistakes in tax reporting. Big issue to consider, depending on who you are relying on to do it now. At your size company, I think it is a toss up. Call a few companies (and larger banks are getting into this as well), see what they offer. Can't hurt to look.
Posted on 6/7/16 at 7:11 pm to Porker Face
It really depends on the company structure. Payroll generally is not that time consuming.
Posted on 6/7/16 at 8:21 pm to Mr. Wayne
You trying to make a decision as a personal power play is the definition of crappy leadership.
Posted on 6/7/16 at 9:33 pm to lynxcat
quote:
You trying to make a decision as a personal power play is the definition of crappy leadership.
This.
Posted on 6/7/16 at 9:39 pm to Mr. Wayne
By outsourcing, you will remove tax filing liability and be able to focus on more revenue generating tasks while giving your employees self-service portal access that generally is lacking by keeping it in house.
Well worth the cost.
Look at Pinnacle Payroll or Netchex over Paychex and ADP as they have a better payroll platform and ensure resolution to completion should an issue come up with accountability by dealing with a local representative as opposed to dealing with call center.
Well worth the cost.
Look at Pinnacle Payroll or Netchex over Paychex and ADP as they have a better payroll platform and ensure resolution to completion should an issue come up with accountability by dealing with a local representative as opposed to dealing with call center.
This post was edited on 6/7/16 at 9:44 pm
Posted on 6/7/16 at 10:09 pm to Mr. Wayne
Doing payroll is a commodity, although with a company this small it can't be much work and how much time will it really free up for someone is the question.
Its very odd that you wouldn't want payroll outsourced for non monetary reasons. I can train a monkey to do payroll.
Its very odd that you wouldn't want payroll outsourced for non monetary reasons. I can train a monkey to do payroll.
This post was edited on 6/7/16 at 10:10 pm
Posted on 6/7/16 at 10:28 pm to Porker Face
quote:
You sound like a prick
I get it, he's trying to maintain his span of control to justify higher pay if he's managing 20 ppl instead 15 if payroll was outsourced.
OP: in two years cognitive automation might handle all payroll. If you bring that onboard it might warrant some nice $$ for you.
Posted on 6/7/16 at 10:52 pm to Larry Gooseman
quote:
I get it, he's trying to maintain his span of control to justify higher pay if he's managing 20 ppl instead 15 if payroll was outsourced.
I'll repeat, this is crappy leadership.
Posted on 6/7/16 at 11:40 pm to Mr. Wayne
You say 35 employees
Are they mostly hourly or salaried?
How sophisticated is the work force in general?
How many peripheral items, (IRAs, 401k, disability insurance, tools, uniforms, etc.) are being offered through the company?
Is Vacation time for hourly employees allowed to be applied to slow week's checks? Mundane minutae like this can be a challenge for the wrong outsourced payroll firm.
You'll still need an HR staff or at least a manager for that many number of employees to handle everyday HR issues.
If you can have the HR Manager do payroll, that's (to me) a natural fit in that sized organization.
Your odd "logic" is off-putting, you'd have a hard time with a good CEO/GM type if they sniffed that self-serving motive. I'd advise you to rethink your motives and MO.
Are they mostly hourly or salaried?
How sophisticated is the work force in general?
How many peripheral items, (IRAs, 401k, disability insurance, tools, uniforms, etc.) are being offered through the company?
Is Vacation time for hourly employees allowed to be applied to slow week's checks? Mundane minutae like this can be a challenge for the wrong outsourced payroll firm.
You'll still need an HR staff or at least a manager for that many number of employees to handle everyday HR issues.
If you can have the HR Manager do payroll, that's (to me) a natural fit in that sized organization.
Your odd "logic" is off-putting, you'd have a hard time with a good CEO/GM type if they sniffed that self-serving motive. I'd advise you to rethink your motives and MO.
Posted on 6/8/16 at 6:45 am to lynxcat
quote:
I'll repeat, this is crappy leadership
I didn't say I agreed with it, but unfortunately I've seen CFO do this to keep 50 ppl in his organization over our recommendation to move them to D&A CoE with estimated 5MM/yr savings.
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