CEO Robert Digby brings more than 20 years of payroll, HR and benefits industry expertise to PayChoice. He is the former president of RSM McGladrey Employer Services and has held senior roles at Ceridian. He was interviewed by AICPA Editor-At-Large Rick Telberg.
Q: What do firms overlook when deciding whether to outsource or in-source payroll?
A: The first consideration is: it never goes away. Payroll must be processed every pay period, regardless of other workloads, vacations or other personnel factors. Also, payroll is the “hub of the wheel” for many other employee management items such as healthcare, retirement and worker’s compensation calculations. The last item to consider is the tax liability. Late deposits and late returns can result in sizable penalties limiting payroll as a profit center for the firm.
Q: How do PayChoice solutions help once the outsource vs. in-source decision has been made?
A: PayChoice operates as a traditional service bureau with some of the highest customer satisfaction scores in the industry and with costs usually 20 percent less than our larger competitors, so an accountant can feel confident that the client’s payroll is in good hands. But PayChoice is also the largest provider of payroll software to licensees, including accounting firms, in the country. It’s not uncommon for firms we work with to see margins of 20 percent or greater from payroll processing.
Q: What else should CPAs know about choosing a payroll solution?
A: Some national competitors use price as a promotion, instead of focusing on the complexities of payroll and the benefits of outsourcing. After the promotional pricing expires, customers are often surprised by steep price increases. But at PayChoice, by working smarter and by continually improving operations, we offer services at typically 20 percent off the list price of national competitors — without discounting or the price increases that come when promotional pricing has ended. We feel this is the right way to do business.