There are many aspects
to consider when determining
whether or not to process
your payroll taxes in-house
or to outsource this function. Here are some factors to consider:
Many companies outsource their gross-to-net payroll operation
but keep the payment of withholding liabilities in-house. Factors
that influence this decision run from the difficulty or inability
to meet outsourcer’s deadlines to the desire to benefit from
the float revenue.
Large corporations often require the flexibility to handle last
minute adjustments, immediate payrolls, stock options, late arriving
information, and off-cycle payroll runs. These situations are easily
handled when using an in-house application, but can present problems
Error adjustments can be entered into an in-house system very
quickly. However, these adjustments may not be made until the
next cycle if you are outsourcing. Therefore, errors and adjustments
can be caught and corrected earlier with an in-house system thus
alleviating much time-consuming correspondence with the taxing
Using an in-house system
permits easy automated integration with other systems such as accounts
payable and general ledger.
Consider what happens when your company undergoes restructuring.
This could be a very costly event with outsourcing.
Another important factor is access to management information.
An in-house system provides immediate access to your data. There
is no need for special requests to your outsourcer, waiting for
results, and, possibly,
incurring extra fees.
Companies often believe that outsourcing the payroll tax function
will eliminate personnel
in the payroll department. Keep in mind that internal personnel
are still required to handle reconciliations, errors, data transmission
and auditing of outsourcer performance. Ultimate responsibility
for compliance lies with the company, not with the outsourcer.
If you are presently outsourcing, the processing fees and float revenue loss may far exceed the in-house cost. Our staff will calculate your float revenue loss, free of charge.
LTtax is sophisticated withholding tax compliance software.
It is a tool designed by and used by payroll tax professionals
across the country. As a tool, it is easy to install (LTtax installation takes less that
3 hours including testing, depending
upon the number of workstations you wish to activate). It eliminates
the use of spreadsheets, redundant keying of data and is highly
customizable. Most important, you will find the technical support
For more information call: 212.643.1768, FAX: 212.643.1766