Payroll and Human Resources in Dynamics GP

Outsourcing vs. In House ProcessingMarch 28, 2012

Agenda• Internal Costs

• Ratio of time• Benefits of Outsourcing• Costs of Outsourcing• Costs of In House Processing• Benefits of In House Processing• Cost Comparison•What to Consider• Demonstration• Free Analysis

• Questions

Internal Costs

Where is your time spent?

Ratio of Time

In most, but not all cases, the ratio of time is as follows:– 35% - Time collection and approval– 10% - Time summarization– 5% - Adjustments to gross payroll– 10% - Entry or submission of hours\gross– 10% - Processing of Checks\Direct Deposit– 5% - Processing of Reports– 5% - Remittance of withholdings and employer taxes– 10% - Tax authority filings– 5% - Process other disbursements– 5% - Recording payroll into the general ledger

Benefits of Outsourcing

Save Time:Processing

ReportsRemittance

Tax Filings

Cost of Outsourcing

Submission Deadline

Inflexibility

Time Value of Money

Benefits of In House Processing

Cost/Employee Drops

Cash Management Improves

Flexibility

Access to Data

Improved Reporting

Costs of In House Processing

Processing Time

Processing Reports

RemittanceSoftware Fees

Withholdings

Cost Comparison250 to 500 Employees Year 1 Year 2 Year 3 TotalOutsourced Payroll $ 20,000 $20,000 $20,000 $60,000

GP Payroll for BRLPayroll Licenses $ 5,000 $ - $ - $ 5,000

Direct Deposit $ 2,000 $ - $ - $ 2,000

Federal Magnetic Media $ 750 $ - $ - $ 750

Support Plan $ 1,938 $ 1,938 $ 1,938 $ 5,814

Implementation Fees $ 12,500 $ - $ - $12,500

Annual Costs $ 22,188 $ 1,938 $ 1,938 $26,064

Yearly ROI $ (2,188) $18,062 $18,062 $33,936

What to consider

What other benefits can be derived at my organization?

Better Employee Service

Improved internal processing and reporting

Demonstration

• Direct Deposit• Checks• Payroll to Payables Integration• General Ledger Posting

Processing Payroll

• Smartlists,• SQL Reporting Services• Report Writer

Reporting

• Tracking Paid Time Off• Tracking Property, Licenses and Training

Human Resources Management

Free Analysis

• Review of your systems

• Findings documented

• Reviewed with your staff

• Highlight areas for improvement

• Discuss options & the related costs and benefits

Questions

?

Contact Information

• Bruce Lane– blane@verticalsol.com– 412-220-5755

• Tina Featheringham– tfeatheringham@vericalsol.com– 412-220-5754