Consistently our client’s payroll administrators ask this question: Should I outsource my payroll or continue to process it in-house? But wait! There are three options, not two! With Scissortail HCM, our clients enjoy the flexibility of in-house payroll without the tax woes. Let’s take a closer look.
If you are considering or own an on-premises solution, you are most likely shouldering all the responsibilities as shown in this diagram. Your software product (i.e., Sage HRMS, Optimum, or Ultipro) will require your firm to do all the heavy lifting related to taxes.
Some legacy packages offer add-on tax filing services or W-2 printing and processing. Most will provide routine updates to tax tables and forms that your IT department will be asked to apply.
Payroll Processors (aka Too Many Fees)
Outsourced payroll offers risk-sharing of tax remittance, tax filings, and assistance in IRS communications and resolutions. If the outsourcing firm makes an error (i.e., remitting taxes late or an amount differing from payroll reports), they will pay the fines and penalties. All other tax issues are still your responsibility related to fines and penalties (i.e., you have an employee set up in the wrong state).
As you can see in the diagram below, all items in pink are tasks you can hand over to the payroll processor. There are still many tasks where you must participate, ensuring that payroll checks are accurate. For example, you will need to notify the outsource firm via web-based data entry, employee changes, salary changes, department transfers, and benefit adjustments.
You will be required to review who is receiving checks, time, pay rates, and deductions before releasing your routine payroll to your payroll processor. The payroll processor will execute the calculation process and distribute employee funds via direct deposit, checks, or pay cards.
Hidden fees with many payroll processors can be shocking (i.e., ADP, Paychex, Paycom). Most charge extra for all special payroll runs like bonuses or terminations. Last-minute adjustments to regular payroll runs might also include extra fees. Access to data may be limited or come with additional fees, whether reports or data extracts.
With Scissortail HCM Outsourced Services, you are charged a fixed monthly or annual fee based on the number of employees in your firm. You have full access to all data, reports, and data extracts with no additional fees. Employee self-service is built into Scissortail, allowing all employees to view current and historically pay stubs and W-2s.
Scissortail Standard Services (aka The Best of Both Worlds)
Scissortail HCM Standard Payroll Services is a hybrid offering that was designed to meet our client’s request for shared services. You can see in the diagram below; the client takes full control over the entire payroll and employee-facing processes. Scissortail handles all governmental responsibilities.
Like Scissortail Outsourced Services, this lower price option is based strictly on the number of employees with no surprise fees.
With either Scissortail Payroll option (outsourced or standard), you will have anywhere-anytime access to your data. Tax headaches will be shouldered by the Scissortail team. Additionally, our team will help you with all your payroll questions.
The choice is yours!