(first post in a series)
The simple truth is that processing payroll in-house is just less expensive than using a service. The return on investment is usually less than two years, and in some cases it’s much, much faster.
Take for example a San Diego client of ours. Their company had 750 employees and paid $160,000 in payroll service costs every year. After a needs analysis, we were able to install a system that met their specifications and pay for the first year of support for the same price. After that, their annual upgrades and support will cost them about $20,000, which is a savings of $140,000 a year.
The cost of a payroll service often crops up in creating the reports you need and filing all the required paperwork. W-2s alone , can easily run into hundreds of dollars, and quarterly filings do as well. If you need a report you are unable to create with their report writer, that can cost $500 and up. With in-house payroll processing, you control your costs and you no longer rack up additional fees.
Modular design = right size for your company
Not every company needs every level of payroll and HR software. We’ve found that companies with 50 or more employees can see a return on investment for switching to an in-house payroll processing system. Many software solutions come in a modular design, so different features can be budgeted for and implemented as you grow. Some of the available modules include:
- Online Benefits Enrollment
Often the ROI on one module can be used to budget for the next module in your implementation plan. Some modules can’t be implemented for 6-12 months, and a consultation will help you prioritize features.
Fearing the tax man
Another cost concern is a fear that a deadline will be missed or a mistake made that will cost your company a lot more than you saved by moving payroll in-house. The truth of the matter is that a payroll service simply takes your data and moves it onto the appropriate forms, at a tremendous cost to you. Your existing staff can be trained to work with your new payroll system. This can alert you to deadlines and generate all the forms and reports that you will require. The biggest cost will be the paper and toner.
One reason that the tax filings feel intimidating is that the reports you’re used to seeing are very complicated and not at all user-friendly. Your in-house system can be designed to be used by people who don’t happen to be computer programmers themselves.
Compare for yourself
Whether you’re using a payroll service or an accountant to take care of your payroll and filings, we can show you how much money you could be saving by installing a custom in-house payroll software system. Contact us today for a consultation. How much money are you wasting?