Subscribe

Strategies for Cost Effective Payroll and HR Administration

Strategies for Cost Effective Payroll and HR Administration

Oct 17 ,2011 1:15 am
By Editorial Staff
.'

Organizational design and process improvements in line with technology investments can better address the costs of HR management. Discussing this issue in a white paper, Price water Cooper PwC, sponsored by Automatic Data Processing, ADP -researched the Total cost of Ownership, TCO of key payroll and human resources administration functions and how to mitigate them. Findings of the research are discussed below.

Cost Drivers of Payroll and HR Administration

  • System installation costs: The one-time costs related to the initial acquisition and implementation of an organizations Payroll and HR administration
  • System upgrade costs: The periodic acquisition and implementation costs related to upgrading to a more current version.
  • Direct labor costs: The cost of labor, salary plus benefits, of the direct staff necessary to support the Payroll and HR administration functions
  • Direct non-labor costs: The total costs of consultants, vendor fees and facilities, and corporate overhead related to the Payroll and HR administration function.
  • System maintenance costs: The IT costs specifically related to maintaining the current systems
  • Indirect labor costs: Cost of labor for employees not directly related to the payroll and HR departments supporting these functions in the field i.e., collecting, approving and preparing employee hours for payroll; distributing paychecks; answering employee questions about benefits, etc. where employees are typically spending only a fraction of their time on these activities
  • Outsourcing costs: The total annual costs of any outsourced services related to processing of Payroll and HR administration such as tax filing, paycheck printing, etc.

Strategies for Cost Reduction

  • Outsourcing: organizations managing payroll, workforce administration, time and attendance, and health welfare benefits in house using premise-based or hosted software solutions spend on average 18% more administering these functions than organizations that outsource these functions
  • Utilizing a common vendor or solution: organizations administering these functions in house using software solutions from multiple vendors spend on average 18% more than those organizations administering them in-house using a common vendor.
  • Organizations outsourcing multiple functions to a single vendor see even stronger cost efficiency on average 32% versus organizations using a multiple vendor or best of breed in-house approach.
  • Providing payroll and HR self-service functionality to employees: this strategy results in a 50% lower TCO of workforce administration for large organizations compared with peers managing the function without these features
  • Integrating time and attendance with payroll this leads to a cost efficiency of 14% over a manual approach or an approach that is not integrated

Furthermore, the current study clearly suggests that cost effectiveness stems from comprehensive process transformation, not just technology innovations. The required change isnt always easy, but significant financial benefits await any organizations ready to really embrace and implement these changes.

Array( [0] => 46) Continuing its enforcement push against refund fraud and identity theft, the Internal Revenue Service today announced the Top Ten Identity Theft Prosecutions for Fiscal Year 2014 (FY14). The ongoing efforts to bring identity thieves to justice remains a significant priority as part of the IRSs comprehensive identity theft strategy focusing on preventing, detecting and resolving identity theft cases as soon ... Almost 40 million tax refunds worth nearly $125 billion have been issued as of Feb. 20, according to Internal Revenue Service statistics released today. The average refund is $3,120. The IRS has processed nearly 50 million returns, about one-third of the total individual federal income tax returns the agency expects to receive this year, with almost 83 percent of those ... The Internal Revenue Service has wrapped up its 2015 Dirty Dozen tax scams list by warning taxpayers against using frivolous tax arguments to avoid paying their taxes. The IRS also released the2015 versionof The Truth about Frivolous Tax Arguments. The 69-page document describes and responds to some of the common frivolous tax arguments made by those who oppose compliance with ... The 2015 tax filing season is off to a strong start with most taxpayers filing their returns electronically and choosing direct deposit for their refunds, according to the Internal Revenue Service. As of Jan. 31, the IRS received more than 14 million tax returns this year. More than 13 million of those returns have been filed electronically, an indication that ... The Internal Revenue Service and the Free File Alliance has announced the launch of Free File, which makes brand-name tax software products and electronic filing available to most taxpayers for free. Free File software can help taxpayers with tax preparation, including the health care law that will affect almost everyone. People can use Free File software immediately but e-filed returns ... Following the passage of the extenders legislation, the Internal Revenue Service announced today it anticipates opening the 2015 filing season as scheduled in January. The IRS will begin accepting tax returns electronically on Jan. 20. Paper tax returns will begin processing at the same time. The decision follows Congress renewing a number of “extender” provisions of the tax law that ... In preparation for the 2015 tax filing season, the U.S. Department of Health and Human Services and the Treasury Department are putting in place resources to provide tax filers with the information and resources they need to get their questions answered. Millions of Americans who get their health insurance through work are benefitting from the Affordable Care Act, and millions ... The Internal Revenue Service today issued the 2015 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car, van, pickup or panel truck will be: 5 cents per mile for business miles driven, up ... The Internal Revenue Service today reminded taxpayers born before July 1, 1944, that they generally must receive payments from their individual retirement arrangements IRAs and workplace retirement plans by Dec. 31. Known as required minimum distributions RMDs, these payments normally must be made by the end of 2014. But a special rule allows first-year recipients of these payments, those who ... The Internal Revenue Service is reminding individuals and businesses making year-end gifts to charity that several important tax law provisions have taken effect in recent years. Some of the changes taxpayers should keep in mind include: Rules for Charitable Contributions of Clothing and Household Items Household items include furniture, furnishings, electronics, appliances and linens. Clothing and household items donated to ... The Internal Revenue Service has issued guidance clarifying the impact a 2014 individual retirement arrangement IRA rollover has on the one-per-year limit imposed by the Internal Revenue Code on tax-free rollovers between IRAs. The clarification relates to a change,announcedearlier this year, in the way the statutory one-per-year limit applies to rollovers between IRAs. The change in the application of the ... Low- and moderate-income workers can take steps now to save for retirement and earn a special tax credit in 2014 and years ahead, according to the Internal Revenue Service. The savers credit helps offset part of the first $2,000 workers voluntarily contribute to IRAs and 401(k) plans and similar workplace retirement programs. Also known as the retirement savings contributions credit, ... Business e-file rose nearly 10 percent this year, continuing the growth that has seen the number of corporate and partnership returns filed electronically double in just four years, the Internal Revenue Service said. An additional 600,000 corporations and partnerships e-filed their tax returns this year. As of Sept. 21, more than 7 million corporations and partnerships e-filed, an increase of ... The Internal Revenue Service today urged taxpayers whose tax-filing extension runs out on Oct. 15 to double check their returns for often-overlooked tax benefits and then file their returns electronically using IRS e-file or the Free File system. More than a quarter of the nearly 13 million taxpayers who requested an automatic six-month extension this year have yet to file. ... The Internal Revenue Service is reminding parents and students that now is a good time to see if they will qualify for either of two college tax credits or any of several other education-related tax benefits when they file their 2014 federal income tax returns. In general, the American opportunity tax credit and lifetime learning credit are available to taxpayers ... With more than one million tax payments already processed this year through IRSDirect Pay, the Internal Revenue Service encourages anyone facing upcoming tax payment deadlines to consider choosing this free online system to quickly and easily pay what they owe. Direct Pay is the latest addition to our growing array of online tools designed to serve taxpayers better, said IRS ... The Internal Revenue Service has announced that interest rates will remain the same for the calendar quarter beginning Oct. 1, 2014. The rates will be: three (3) percent for overpayments (two (2) percent in the case of a corporation); three (3) percent for underpayments; five (5) percent for large corporate underpayments; and one-half (0.5) percent for the portion of a ... The Internal Revenue Service has issued a consumer alert providing taxpayers with additional tips to protect themselves from telephone scam artists calling and pretending to be with the IRS. These callers may demand money or may say you have a refund due and try to trick you into sharing private information. These con artists can sound convincing when they call. ... The Internal Revenue Service has announced that its cornerstone “Taxpayer Bill of Rights document is now available in six languages. Newly-revised versions of Publication 1, Your Rights as a Taxpayer, are now posted on IRS.gov in English, Spanish, Chinese, Korean, Russian and Vietnamese. By making this important publication available in multiple languages, the IRS hopes to increase the number of ... National Taxpayer Advocate Nina E. Olson has released her statutorily mandated mid-year report to Congress that identifies the priority issues the Taxpayer Advocate Service TAS will address during the upcoming fiscal year. The report emphasizes the importance of taking concrete steps to give meaning to the recently adopted Taxpayer Bill of Rights, issuing refunds to victims of return preparer fraud, ... Employee time and attendance system Attendance on Demand is exhibiting at booth 739 at the 2013 Hospitality Industry Technology Exposition and Conference HITEC, June 25 – 27, 2013 at the Minneapolis Convention Center, Minneapolis, MN. Sponsored by Hospitality Financial and Technology Professionals HFTP, HITEC is the most comprehensive meeting of its kind in the hospitality industry offering informative technology seminars, ... There is nothing illegal about holding assets through offshore entities; however, such offshore arrangements are often used to avoid or evade tax liabilities on income represented by the principal or on the income generated by the underlying assets. In view of this development, the tax administrations from the United States, Australia and the United Kingdom announced a plan to share ... Following Boston Marathon Explosions, the Internal Revenue Service today announced a three-month tax filing and payment extension to Boston area taxpayers and others affected by Mondays explosions. This relief applies to all individual taxpayers who live in Suffolk County, Mass., including the city of Boston. It also includes victims, their families, first responders, others impacted by this tragedy who live ... As the tax season is winding down, the Internal Revenue Service is reminding taxpayers to review their tax returns for common errors that could delay the processing of their returns. Here are some ways to avoid common mistakes. File electronically.Filing electronically, whether throughe-fileorIRS Free File, vastly reduces tax return errors, as the tax software does the calculations, flags common errors ... Landowners may make complex financial agreements to receive royalty, bonus or other income in exchange for access to the resources on their land, such as natural gas and oil from shale deposits. Hence, taxpayers who own land that contains valuable natural resources should be aware that arranging for the development of the resources by means of a lease creates tax ... In a bid to investigate and prosecute specific cases of identity theft, the Internal Revenue Service has announced a nationwide expansion of the law enforcement assistance program designed to help law enforcement obtain tax return data vital to their local efforts. More than 1,560 waiver requests have been received since the Law Enforcement Assistance Programs inception from over 100 state ... The Internal Revenue Service annual Dirty Dozen list of tax scams has been released to remind taxpayers to use caution during tax season to protect themselves against a wide range of schemes ranging from identity theft to return preparer fraud. The Dirty Dozen listing, compiled by the IRS each year, lists a variety of common scams taxpayers can encounter at ... The Internal Revenue Servicehas refunds totaling $917 million waiting for an estimated 984,400 taxpayers who did not file a federal income tax return for 2009.However, to collect the money; a return for 2009 must be filed with the IRS no later than Monday, April 15, 2013. The IRS estimates that half the potential refunds for 2009 are more than $500. ... Enrolled agent Lorna M. Walker has been debarred by the Internal Revenue Services Office of Professional Responsibility for stealing a client’s tax payments and for preparing tax returns with false deductions for multiple clients. Walker’s enrolled agent status and her ability to prepare federal tax returns were revoked for at least five years. Walker practiced in the Seattle area. Making ... The Internal Revenue Service announced that it has finished updating its tax-processing systems allowing all remaining individual and business taxpayers to file their 2012 federal income tax returns. Over the weekend, the IRS completed reprogramming and testing of its systems for tax-year 2012 including all remaining updates required by the American Taxpayer Relief Act ATRA enacted by Congress in January. ... Following the completion of reprogramming and testing of its systems, the Internal Revenue Service IRS has announced that taxpayer can start filing two major tax forms covering education credits and depreciation. This step clears the way for almost all taxpayers to start filing their tax returns for 2012. These forms affected the largest groups of taxpayers who were not able ... The VCSP is a voluntary program that provides an opportunity for taxpayers to reclassify their workers as employees for employment tax purposes for future tax periods with partial relief from federal employment taxes. To participate in this voluntary program, the taxpayer must meet certain eligibility requirements and apply to participate in the VCSP by filing Form 8952, Application for Voluntary ... The opening of the filing season follows passage by Congress of an extensive set of tax changes in ATRA on Jan. 1, 2013, with many affecting tax returns for 2012. While the IRS worked to anticipate the late tax law changes as much as possible, the final law required that the IRS update forms and instructions as well as make ... The Internal Revenue Service has announced annual inflation adjustments for tax year 2013, including the tax rate schedules, and other tax changes from the recently passed American Taxpayer Relief Act of 2012. The tax items for 2013 of greatest interest to most taxpayers include the following changes. Beginning in tax year 2013 generally for tax returns filed in 2014, a ... PaycheckCity‘s online payroll calculators have been updated to include the latest 2013 tax information following Congress’sfiscal cliffcompromise. Individuals can use the site’s self-service tools to model what their take-home pay will look like for their first paycheck of 2013given the tax changes announced early this year. While the calculations on PaycheckCity reflect the most up-to-date tax tables, because the fiscal ... Aatrix Software, Inc., a leading Payroll reports/payments eFile provider announces a strategic partnership with BGTax Forms to provide W-2/1099 eFiling services via the the Aatrix Payroll eFile Center to their customers. The solution will be available to customers using BGTax Forms from their website. Aatrix Features The Aatrix W-2 eFiling Service works with virtually any payroll software. Simply use a ... Advantage Payroll, the regions largest independently owned payroll service provider is pleased to announce a new product to help streamline clients HR needs. Advantage is proud to offer HR OnDemand, a comprehensive online HR portal that can be accessed 24 hours a day, seven days a week. HR OnDemand offers access to a policy library, hundreds of customizable job descriptions, ... In its just completed review of United Airlines pension assets, Pension Benefit Guaranty Corporation found that in 2008, the agency had undervalued Uniteds pension assets by about three-fourths of one percent. As a result, PBGC will increase slightly the benefits of some United retirees and will be making back payments with interest to those who have already been underpaid. The ... Following the Department of Health and Human Services, HHS final rules on the calculation and payment of medical loss ratio MLR rebates to health insurance policyholders. Rebates are already being paid to recipient. The following questions and answers provide information on the federal tax consequences tothe health insurance issuer that pays MLR rebate andthe individual policyholder that receives the MLR ... PrimePay Inc., a leading nationwide provider of payroll, tax, HR and benefit services, has launched a new services portal called PrimeFlex Online for their pre-tax health account and flexible benefit plan clients. Employers that offer flexible spending accounts FSA, health reimbursement arrangements HRA and health savings accounts HSA as part of their benefits package can improve HR efficiencies and provide ...
  1. Rangler12-21-2011

    A perefct reply! Thanks for taking the trouble.

  2. auto-rijbewijs12-28-2011

    It’s a nice blog you have over here! It’s very usefull information for me and I just want to thank you for that! If you post more threads as this one, I’ll follow your blog active!

    Leave a Reply


    − one = 8