04-27-2020 Council Packet - Laserfiche WebLink

Home Browse Search

AGENDA ITEM Prepared By: RJO Reviewed By: DJR Approved By: DJR 1. Purpose. The purpose of this agenda item is to obtain council approval to contract with Paychex for payroll related services. 2. Background. In October of last year the Payroll/Utility billing Specialist submitted her notice of retirement. Her final day was November 27th and the position has been open since then. Staff has been meeting with the Organization Committee to discuss how the duties of this position should be performed. One of the options being considered has been outsourcing some or all of the position’s duties. The Committee and staff agree that the outsourcing of the payroll functions would be appropriate. During the process staff contacted three payroll companies: ADP, Gusto, and Paychex. The services available between the companies varied. In conversations with Gusto, they indicated that they were set up for smaller non-government entities and that city should look to the bigger players in the market like Paychex and ADP. In meeting with the companies staff found that the representatives from Paychex were much better to work with. They made a noticeable effort to learn about our needs and presented us with multiple options to fit our needs. The solution offered by Paychex includes payroll processing, benefit administration, and human resources support. This solution provides an opportunity to stream line software packages to include miPayOnline (hours entry, leave requests, and paperless paycheck delivery), Orono Benefits enrollment, HRwize (performance reviews), and Further (FSA/HSA, Dependent Care services). The solution would streamline the onboarding and benefits enrollment; with entries made being during these processes automatically entered into payroll removing an area for errors to enter the system. By having a single agent and software provider it is expected to reduce the administrative management burden of Finance, IT, and HR by around 100 to 150 hours. 3. Cost. The cost for the fully integrated HR/Payroll solution from Paychex is $31,000 annually with a one-time set up cost of $2,500. Paychex is currently offering new customers two months (1st and 4th) of free service. The two free months would reduce the first year’s costs to $29,500, including the setup fee. 4. Funding. Funding for this service would come from currently budgeted funds. A majority of the funding would be from fees currently to other vendors for services that will now be performed by Paychex. These fees include include: The balance of the funding will be from the $91,047.76 budgeted for the open position in the Finance Department. Item No.: 4 Date: April 27, 2020 Item Description: Approve Payroll Services Presenter: Ron Olson Finance Director Agenda Section: Consent Agenda Software Costs $13,688.00 Benefit Agent Fees $10,500.00 Total $24,188.00