The last quarter of the year tends to be when a number of our clients consider bringing their payroll in house. Many mid-sized companies outsource payroll to a small bureau or one of the big players (eg ADP) and this costs them a packet. However, bringing it in house can be scary and will it actually save money?
In my experience the only honest answer is 'yes - but'....
Something as sensitive (critical) as a payroll can not be experimented with and many companies think of it as a project to implement software. Actually, its all about the people that are going to end up running the payroll. Projects to bring payroll in house must be resourced properly and if it is going to go wrong this is the most likely cause. A company that outsources its payroll usually has someone in house that does a large part of the work (bureaus rarely earn their keep) and this person can / should be central to the project. They will dislike software, be very nervous and fear for their job. Training this person must not be skimped on and a level of hand-holding after implementation is essential to build up confidence and experience (don't forget that the first tax year end). Even when they are up and running, someone to call on occasionally when a difficult question arises is important. In a few cases this person is simply not the right resource, so a change of personnel has to happen but this rapidly becomes obvious to all concerned.
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