The Payroll Experience

Illinois Lottery Winners Get Stiffed When State Checks Don’t Cash « CBS Chicago

2012-01-06T14:44:00.000-08:00

"No, really. I won the lotto, I swear I did!!" says the winner to the banker... as laughter erupts.

Illinois Lottery Winners Get Stiffed When State Checks Don’t Cash « CBS Chicago:

New Law Ends Payroll Shell Game

2011-11-29T12:37:00.000-08:00

Look out California business owners!

"SB 459 goes into effect on January 1, 2012, and it levies large fines against employers who willfully misclassify workers as independent contractors to avoid their legal and tax responsibilities."

Don't Cross IRS On Payroll Taxes - Forbes

2011-09-29T09:32:00.000-07:00

This is a good article, with some nice ammunition supporting the use of a Payroll Service Bureau to withhold and pay taxes.

Don't Cross IRS On Payroll Taxes - Forbes:

'via Blog this'

Back to School Payroll?

2011-08-16T06:10:00.000-07:00

I was just reading advertisement in disguise as an article on paying student employees put out by Intuit this morning, and had a thought.

Why not get on this bandwagon? Student's are hard up for jobs, this much is clear. I remember my first few jobs well... a small movie rental store, fast food, a local regional grocery store, and hawking used furniture with a friend of mine's father on the weekends. Not glamorous that much is certain, but I learned a lot about life as I began dipping my foot into the adult world.

The jobs that could be the most intriguing are the small businesses. No, the jobs were not intriguing, but the opportunity to make inroads in the community, and help small business owners to support High School and College age kids is.

This could be a great opportunity to both find new payroll business, and give back to your community in a couple of ways:

You could be helping kids to understand what all the little numbers on those pay stubs mean
You could help the student to establish their employment paper trail and first real bit of data for their resume
You could sponsor a student employment seminar and resume review with other business owners, or even get the ball rolling on a 'students only' small business job fair.

Use your imagination, and check out what one entrepreneur at Intuit Canada came up with in the article below:

The ABCs of Hiring Student Employees - Press Release - Digital Journal

Seriously? "Grim outlook could hold back payroll firms"

2011-08-11T09:03:00.000-07:00

I guess Jefferies & Co. Inc's analysts only talked to ADP... not a single drop of negativity from the folks I chatted with last week at the Independent Payroll Providers Association annual conference.

I saw new vendors providing ancillary services who had never attended, a huge turnout for the 'new members' reception, and a general buzz going around regarding growth, and success in our industry that provides payroll and HR services specifically to the small and mid-sized business.

Post your success stories as a comment and help show the world the real story - that there is a lot more to our industry than ADP and PAYX...

"Companies that process payroll for small business are feeling the pressure of a slumping economy and the diminishing confidence business owners have in short-term recovery."

Grim outlook could hold back payroll firms - Forbes.com

TN Angel Fund invests $1M in payroll venture - Nashville Business Journal

2011-07-22T15:30:00.000-07:00

TN Angel Fund invests $1M in payroll venture - Nashville Business Journal

The Transition From SAS 70 to SSAE 16 is Right Around the Corner

2011-07-14T09:00:00.000-07:00

A great article outlining the differences between the SAS 70 and the new SSAE 16:

The Transition From SAS 70 to SSAE 16 is Right Around the Corner

R.I.P. Intuit Complete Payroll Services

2011-07-01T11:09:00.000-07:00

Intuit is finally closing the doors on Complete Payroll Services.

It has been over four years since I left Intuit Complete Payroll Services as the sale of the majority of their client base was made to ADP.

Many friends stayed on and worked through the conversion (not my specialty), and have since moved on to new opportunities. The time I spent with the team in San Bernardino, California will be counted among the most important experiences of my career in the payroll industry.

We were a great team, and some of the greatest team members were those who arrived at Intuit from CBS Employer Services in 2002 during Intuit's acquisition of the company. CBS Payroll was a family business founded in 1966 and grew to support over 12,000 clients at the time of acquisition.

CBS Payroll is an example of what every independent payroll service bureau strives to become. Not the target of acquisition, but in a place where they could be.

Hats off to the Sykes family for reaching for the sky and showing us the way - Joe, Mike, Tammy... and all of those who helped them along the way.

As the Intuit payroll engine continues to burn through fuel... CRI ($200 million), CBS ($78 million), now PayCycle ($170 million)... I am having a harder and harder time seeing their point.

$448 million dollars invested (at least...) $278 million lost, and $170 million on the table? I certainly hope that the folks at PayCycle did their homework, or that Intuit has learned from their past, failures.

...and finally, a shout-out to the last man standing from CBS Payroll Software - U da man Joe!

California - 'Overtime is for Everyone!'

2011-07-01T06:05:00.000-07:00

In a decision that will warm the hearts of both employers and outsourced payroll service providers, the California Supreme Court opened up their overtime laws to all workers who enter the state.

What does this mean for out of state employers? Well, if you are based out of Arizona, which has no overtime laws, and choose to not pay overtime to your employees... you may well be paying some double-time if you send that hourly marketing rep to work the booth at a trade show in L.A.

Of course, thanks to the current economic conditions in the Golden State, as always, enforcement may be tricky...

Link to Legal Brief

"Residents of other states who work for California companies are protected by the state's overtime laws during business trips here, the California Supreme Court decided unanimously Thursday."...

Ouch...

"California law says nonexempt employees who work more than eight hours a day or 40 hours a week are entitled to overtime at a rate of 1 1/2 times their normal pay. Overtime pay rises to double the regular rate for work in excess of eight hours on the seventh workday."

An Inspiring Video that ALL Leaders Should View and Consider

2011-06-27T14:04:00.000-07:00

Remember that Leadership takes place at all levels. No one leads without followers... and the greatest of followers are those who inspire their leaders. Figuring out 'Why' you do what you do is an excellent exercise for every business.

Father's Day 2011

2011-06-18T07:24:00.000-07:00

Earlier this week I spent my drive home from my day full of payroll talking with my Dad. We spoke of his recent trip to Seattle to see U2, and about our upcoming trip to visit the family in Bend, Oregon over Father's Day Weekend. But the most memorable part of our chat was about his softball team taking the gold last weekend. This wasn't just any softball team. This was the Special Olympics team from Bend.

I remember back in grade school when Dad took me to their basketball practices when he was coaching and I got to practice with the team. These players were hard core! I got knocked to the floor a number of times which was when the true colors of the Special Olympics showed themselves... the ball hit the floor, and the whole team ran over to help me up and see if I was OK. A couple of players gave me a hug (nearly rib cracking hugs in one case!).

Now, I don't really follow sports, but I know good sportsmanship when I see it. These folks love to play, but they also have a lot of love for each other and want everyone to have a good time. I remember Dad saying that he always learns more from his experiences with the players then he teaches them.

What has my Dad taught me?

How to work with ANYONE
How to play fair
Negotiation
Humility
Office Politics Survival Strategies (yeah, I was listening in... lol)
Equality
A zillion other things I owe to him, but couldn't name...

I would encourage everyone to think back this Father's Day to the life lessons that your Dad has passed on to you that have shaped the way you do business, and let them know.

Happy Father's Day Dad! Thanks for everything.

Always a winner...

2011-06-15T07:15:00.000-07:00

ADP's Henry Taub Passes at age 83

2011-04-04T15:59:00.000-07:00

As much as the small to mid-sized service bureaus market against the likes of ADP and Paychex, without Henry Taub and his contemporaries, our businesses wouldn't be where they are today.
In 1949, he had the same dream that a startup payroll service bureau has today, "the opportunity to relieve business owners of the burdens of administrative functions, such as payroll processing, so they could instead concentrate on expanding their businesses."

http://www.adp.com/media/press-releases/2011-news-releases/adp-announces-passing-of-founder-and-honorary-chairman-henry-taub.aspx

SwipeClock Conference Wrap

2011-04-02T05:49:00.000-07:00

As I am sitting here in the lobby of the Homestead resort outside of Salt Lake City, UT waiting for a ride to the airport, I was thinking back through the past few days and remarking to myself about what a close knit family the active members of the payroll service industry are.

Conferences such as this are like family reunions. Even the competition greets each other with handshakes and hugs. There is a sense of camaraderie that, although is likely not unique, is something I've not experienced elsewhere.

The three day conference here at Homestead was a great time of learning for all - integrating, selling, servicing, programming... stories of successes and failures, stories of battling for business (and winning) against ADP and Paychex... Ideas for new features for SwipeClock.com's time and attendance solutions, and the unveiling of many new features and upcoming plans by the same.

A big thanks to all of the SwipeClock team members for a great event! Looking forward to the next.

"Jesse James stole Corps payroll 130 years ago today" ($5,240.18)

2011-03-11T19:16:00.000-08:00

Story by Leon Roberts

"NASHVILLE, Tenn. – If direct deposit existed 130 years ago today, history could have been changed. That’s when famed outlaw Jesse James robbed the U.S. Army Corps of Engineers payroll being delivered by horseback just two-miles shy of reaching employees at Blue Water Camp in Alabama."

http://www.dvidshub.net/news/66860/jesse-james-stole-corps-payroll-130-years-ago-today

Networking in the Payroll Business

2011-03-03T10:24:00.000-08:00

A quick unsolicited plug for some old friends at IPPA (The Independent Payroll Providers Association) who are in Las Vegas this week at the annual Sales and Marketing Workshop...

Payroll Service Bureaus of all sizes come together to share ideas and learn together as they grow their businesses.

In their own words:

"Our leading nationwide trade association is made up of privately held companies whose primary function is the preparation of payroll and payroll taxes for employers of all sizes. Our broad base of independent service bureaus, both large and small, is dedicated to offering the best client service and the most advanced technology. We pride ourselves on a proven track record of providing competitive payroll and HR solutions for today's marketplace."

Check them out at: http://www.ippa.net

Paychex completes the acquisition of SurePayroll

2011-02-16T07:23:00.000-08:00

Paychex finished up the acquisition of SurePayroll last week for $115M. Best of luck to Michael and his team.

http://www.tradingmarkets.com/news/press-release/payx_paychex-completes-acquisition-of-surepayroll-1479944.html

http://www.tradingmarkets.com/news/stock-alert/payx_paychex-acquires-surepayroll-1490318.html

Paychex Consumes SurePayroll

2010-12-09T07:44:00.000-08:00

Paychex's acquisition of SurePayroll is an interesting move. SurePayroll is one of the largest, independent payroll service bureaus that has been biting at the heals of ADP and Paychex for many years. The release, linked below, calls out a few key areas of interest to Paychex: their SaaS model, mobile payroll applications, and a big entry point into the Banking payroll channel.

Last month, ADP & Perquest, this month Paychex & SurePayroll... we can only wonder what the new year might bring.

“We are excited for our customers, channel partners, employees, and small businesses everywhere. This is a great combination of strengths,” says Michael D. Alter, SurePayroll president. http://www.businesswire.com/news/home/20101209005814/en/Paychex-Acquire-SurePayroll

MasterTax, LLC - ADP Acquisition (Yes, yester-month's news)

2010-11-26T08:44:00.000-08:00

Better late than never... I thought a splash of information on the acquisition of MasterTax by ADP in October might be in order.

Cynical thoughts.... It couldn't be more annoying to be an independent payroll service bureau who has been fighting off the ADP reps for years to end up standing naked in front of the enemy, pardon, 'worthy competition', as their client list is potentially thrown across the battlefield by an ally. As you can see in PTM's published reaction to this acquisition, they anticipated an influx of Payroll Service Bureaus moving onto their tax management service as a result of this sale.

MasterTax has provided a great service for folks for many years, and I wish them well. The part that might frighten an independent bureau is reflected in this statement from ADP's press release, “We look forward to leveraging our combined expertise in tax and compliance services, as well as introducing MasterTax’s clients to ADP’s broad offering of proven solutions.”

Ouch.

It is a huge annoyance for a payroll service bureau to switch from one outsourced tax service to another - expensive too. If I were in their shoes, I would make a call to ADP and ask them if they plan to offer their payroll services to my client list gleaned from MasterTax's records... and get it in writing.

Happy Thanksgiving to All!

2010-11-25T09:39:00.000-08:00

Let us remember that, as much has been given us, much will be expected from us, and that true homage comes from the heart as well as from the lips, and shows itself in deeds.

~Theodore Roosevelt

Perquest / ADP Comment Storm

2010-11-20T09:40:00.000-08:00

As any politician knows, an information vacuum wants to be filled. It is up to you to fill it with your own spin before the opponents do. So it is with the information flow on the Perquest closure and client sale to ADP.

Now, I'm sure that there are a number of non-disclosures, etc. that are holding back the folks in the know from speaking to the event publicly, but a variety of points of view have been aired within the 40 plus comments that have been posted in response to my initial note on the topic.

Should any former principals of Perquest wish to post a response, I would gladly give them a forum here.

Choosing a Payroll Service - Avoiding the Acquisition Bulls-Eye

2010-11-11T10:46:00.000-08:00

In light of the recent acquisition of Perquest's client base by ADP (not an uncommon activity by them), the thought came to my mind that many small to mid-sized businesses may not be aware of what the 'Acquisition Target' warning signs are before they make a move to a new payroll service.

As their 'new' payroll service brings them on-board, it is typically a move off of ADP or Paychex and toward a smaller, more customer-centric service, which is great.

Downside? When the 'Acquisition Target' payroll service bureau sells - the payroll clients go right back to the service they left, and ADP is the most likely company to be doing the acquiring.

This generally puts a sour look on the average business owner's face.

So, what are the warning signs that your new, smaller, friendlier payroll service may have a secret 'For Sale' sign taped to the back of their door?

Three Core Points:
#1 Investors Own the Company
#2 Previous History of Acquisitions in C-Level folks' Resume
#3 Abnormally Rapid Growth

To Point #1: If investors own the company, they are likely in it to turn & burn the investment. Once they see a tidy profit to be made (or - in the case of Perquest, a big loss to avoid), they are out - and so are you.

To Point #2: If the management team has had previous history of their companies being acquired, it has to be very tempting to build the business specifically as a target for acquisition.

to Point #3: Building on #2, if the management team is tempted - they may throw away money, acquiring clients by using deep discounts. This bloats up the numbers, but the clients who got a deal may not feel so good about it when they are sold to ADP.

So, as a business owner, here are a couple of questions to get you started as you avoid a potential return to ADP or Paychex:

"I love your solution for my business' payroll and HR needs. Can you tell me about your company's history?"
"How many clients do you have?"
"How many new clients do you bring aboard each year?"

As always, moving your payroll to a new service can have many implications, including tax related issues. Get as much detail as you can about the transition process, and don't be afraid to ask pointed questions. If they don't have answers (or can't make a quick phone call to find out) - keep shopping.

Valiant Acquires Triton HR Payroll Processing Customer Base

2010-11-06T12:30:00.000-07:00

Valiant Acquires Triton HR Payroll Processing Customer Base and Expands Market Coverage with a Triton HR Independent Representative Agreement.

http://www.prlog.org/11050131-valiant-acquires-triton-hr-payroll-processing-customer-base.html

Perquest sells to ADP?

2010-11-04T20:59:00.000-07:00

We will see what shakes out, but it looks like Perquest has sold to ADP, and locked the doors to numerous regional sales offices...

Salem City Council Hears from Investigator, Accountant - WBOY-TV - WBOY.com

2010-03-11T11:27:00.001-08:00

Salem City Council Hears from Investigator, Accountant - WBOY-TV - WBOY.com

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