Payroll processing....

ADP has the scale, so they are not easy to beat. However, there are certainly alternatives and it is a competitive marketplace. Check out: http://payroll.intuit.com/ http://www.accuchex.com/ http://www.paychex.com/ And, if you want to integrate with other HR services you can try Trinet http://www.trinet.com/. I typically bid this stuff out annually. Let them know that their competitors are in the bidding process and you can drive multiple rounds of bidding and sometimes open up special discounts which the companies use to win market share from specific competitors. Of course there is more here than straight monthly cost/person. You also have to take into account the switching cost, how well your current provider is integrated and how well the others would integrate, as well as ease of use and reporting. Any of those factors may trump the cost from the provider.

$500 per month is less that $10 per employee. That is cheap. Stay with the ADP contract as long as you can.

Ken , I think $500 per month for 55 employees is too expensive also.... Shop around!

A couple of factors will dictate not "if" but "how much" you can save. Factor 1 being Time & Attendance. If you currently own your time management or lease through a POS system any service can customize an import and the per payee rate can decrease significantly. Factor 2 is number of pay periods per year. Law only demands employees be paid at least bi-monthly. Simply switching to bi weekly can reduce cost. Many factors are considered in determining true cost so look into all the charges. If there is a set up or admin fees for new hires, terminations ect. your cost may not be calculatable and could end up higher than you currently pay.

I think some of the payroll services operating with a 401K option might be giving you a great deal on processing costs while giving you less of a deal on the 401K option. While you are buying into a great payroll plan, you might have been distracted from looking at other 401K options.

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As a veteran of the payroll service bureau industry, I would recommend that you look at an independent payroll provider. Often, the service level of the smaller providers is much greater than that of ADP or Paychex. When performing your due diligence, there are a few important things to consider. Ask for a copy of the payroll provider's SAS70 Type II and review the exceptions carefully. Ask about their data center to be sure that there is sufficient security and redundancy. Demo the software to be sure it can support your needs. There are a lot of great companies out there than can significantly reduce cost while increasing service.

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This discussion provides good agreements and useful points when considering payroll service providers. The large services providers such as ADP have made acquisitions to stay competitive in many compensation related areas including consolidated reporting and analysis and customer service. Having implemented and administered several payroll services, ADP stands ahead of the rest with vertical and horizontal depth for startups and large clients such services as TotalSource, a PEO (Professional Employee Organization) service but critically important is your own negotiating skills and the ADP team assigned to the company. It can be difficult, if not a deal killer, when you don’t get the response you expect from your assigned team. My suggestion is to start a requirements list for your company, through everything employee related onto the list because today you can save the company and employees money and time by outsourcing services not previously considered a candidate for outsourcing. Then invite in different providers and edit your requirements list and you go along. In a short time your list will flush out a leader for you, then back to your negotiating skills. If you need detail assistance or superior ADP contacts please feel free to contact me – georgecpagmail [dot] com. Finally, I do have a bias towards ADP because I have been able to trust them, get good service and good pricing. Be very careful with small payroll services providers because the end liability could end up all the way back to the directors of the company.