Should You Outsource Payroll or Bring it In-House with Microsoft Dynamics GP

Written By: Jennifer Swiderski

from June 26, 2012

 

Companies today are faced with a very tough decision, do they use an in-house payroll system or choose to outsource.  Many companies quickly decide to outsource payroll, without really performing a detailed comparison to determine what would be a more cost effective way to handle their payroll. They believe that outsourcing payroll will save time and be more economical as well as unburdening themselves with the angst attached to quarterly and yearly tax filings.  These expectations are not always correct.

 

Now let’s examine the issue that outsourcing is more economical.  Adding payroll to Microsoft Dynamics GP along with all of the pertinent implementation costs certainly can make this task daunting and a bit cost-prohibitive with larger upfront costs.  Bear in mind though that the expense is largely absorbed in the first year with very little maintenance fees on an ongoing basis.  Also, since the data is already in-house, you may create additional and customized reports that can be generated without paying extra for this feature which is typical with outsourced payroll providers.  Lastly, when you decide to outsource your payroll, the staff still maintains the responsibility for entering and managing over 90% of the actual payroll process.  The outsource service just takes your data to complete the pay check run and tax filing tasks.

 

With Microsoft Dynamics GP there are services available that assists you with the filing of your taxes while doing your payroll in-house.  There is also online accessibility to direct deposit pay stubs, mailing of the paychecks, viewing and downloading W2’s for your employees and the service can even automatically mail the W2’s for you.  This assures you’re covered at all angles.
A final reason why having payroll in-house may provide greater overall value than outsourcing is all the things you can more easily do with it.  From integrating your payroll system into your time clock, human resources, or your project management system, you are better able to manage your business seamlessly.  With the payroll data in-house, you are also able to easily access the data and build tailored reports that can provide significant operational value and better decision making. 

 

In conclusion, in-house payroll may not be the right choice for everyone but you have to consider the big picture when making this decision.  A good payroll application, such as Microsoft Dynamics GP, can manage the process and tax filings effortlessly while also providing employees access to a self-service portal.  There is much more to consider than just who and how the tax filings are handled. Please contact The TM Group today at 888.482.2864 or email jennifers@tmgroupinc.com to learn more about Microsoft Dynamics GP Payroll.

 

If you are in Michigan and want to learn more about why you should bring Payroll in-house, the TM Group’s President, Ms. Judy Thomas will be presenting “Outsourced versus In-house Payroll with Microsoft Dynamics GP 2010”  at the Michigan Association of CPA’s two day, Management Information & Business Show. Ms. Thomas’ presentation times are Wednesday, June 27th and Thursday, June 28th, from 10:30 am to 11:20 am daily at the Suburban Collection Showplace, 46100 Grand River Avenue, Novi, MI, 48374.