What do you find to be the best type of payroll system? Why?
Asked by yourholly21
I am doing a research paper on what type of payroll system is the best. I am comparing an outsourced payroll system, an in-house computerized payroll system, and an in-house manual payroll process. What are your experencies? What do you see as positives and negatives?

Best Answer:
OUTSOURCING PROS: The employer iability is shifted to the service, if agreed, they must follow regulations in filing and reporting payroll and if agreed to - sometimes paying taxes on the employer's behalf. It is less work and burden on employer OUTSOURCING CONS: It can be less flexible. The svc. imposes deadline (including 'late submission' fees sometimes) and dictates when your p/r must be turned in or reported in order to get your checks or direct deposits on time. If you have an adjustment to someone's pay or gross earnings or deductions, etc.. it has to 'pass through' or be reported to the service. Even if you have to cut an extra check at the last minute, it might not be as easy or convenient as (re-)printing a check at your fingertips. INHOUSE PROS: It's convenient to have 'control' of how and when your payroll is processed or printed. Easy to check or view your own payroll before you actually cut the check. Depending on how many employees on the payroll, packaged software could be fairly inexpensive. INHOUSE CONS: The general public does not realize the monstrous burden that employer's carry. There are federal and seperate state labor laws that govern issues like overtime and min. wage, federal, state, city, local tax withholding laws, on top of federal and seperate state unemployment regulations that are all under strict reporting and payment schedules that the employer must follow. Failure to acknowledge, adhere or comply with any of these mandated regulations, can impose huge fines, penalties and some times imprisonment. If you are processing your payroll in-house, best advice is: Make sure your in-house system is up to date with all of these requirements. Does the software include upgrades and updates? If your building your own in-house, it'll require lots of homework year round to ensure compliancy. Not realizing these factors, could be crippling to a business or put the employer out of business completely. Good Luck! RAF - Certified Payroll Professional