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The Resource Group

5 Reasons to Switch from Outsourced Payroll to In-House Microsoft Dynamics GP Payroll


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by Lori Penewit, The Resource Group

More and more small and medium sized businesses have opted to move payroll processing from an outsourced solution to an in-house solution using Microsoft Dynamics GP.  Here are a few reasons why:

  1. Catch Payroll Errors Before Paychecks go to Employees
    One of the downsides of using outsourced payroll providers is that errors are often detected after checks have gone out to employees.  A big advantage of using Microsoft Dynamics GP Payroll is that the gross pay and net wages of every employee are easy to review in detail before checks are printed or direct deposits are calculated.  With Dynamics GP Payroll, errors can be fixed during payroll processing instead of cleaning up afterwards in the general ledger.
  2. Easily Record Payroll Adjustments
    So, you just learned that an employee should have been given a raise two months ago? Microsoft Dynamics GP Payroll allows a quick way to correct mistakes by providing an easy-to-use Retroactive Pay Management feature.  There’s no need to make corrections in multiple systems since Dynamics GP Payroll will post through to your Dynamics GP Financial module.
  3. Flexibility for Specialized Payroll Requirements
    Many outsourced payroll companies cannot provide enough flexibility for customers who have special payroll requirements, such as advanced cost allocations and reporting needs.  An in-house solution such as Microsoft Dynamics GP Payroll provides a great deal of flexibility.  Dynamics GP reports are customizable and products such as SmartList Builder and SQL Server Reporting Services reports expand the possibility of customized reports even further.  In addition, Dynamics GP Payroll can be configured to allocate costs in considerable detail.
  4. Confidential Payroll Data is Kept In-House
    Many businesses simply feel more comfortable using an in-house payroll solution because of the sensitivity of payroll data.  Using an in-house solution allows businesses to keep personal data such as social security numbers and salary information completely internal.  Also, Microsoft Dynamics GP version 10.0 and later uses a “pessimistic” security model, so even GP users have no access to Payroll data unless they are granted a security role that includes payroll screens and reports.  In-house payroll allows businesses to determine exactly who can and cannot view their own private payroll data.
  5. Simplified Payroll Processing and Integration with Financials
    Once Microsoft Dynamics GP is configured to a business’s specific payroll requirements, processing payroll is generally straight forward.  Many businesses have realized that the claimed “cost savings” of using an outsourced payroll solution just aren’t there, particularly as fees from outsourced payroll companies continue to rise.  This is especially true for custom report requirements.  In addition, once payroll is posted in Microsoft Dynamics GP, the Payroll module data automatically posts through to the Financials module.  The fully integrated nature of Microsoft Dynamics GP often results in significant cost savings to businesses.

by Lori Penewit, The Resource Group – Seattle, Washington Microsoft Dynamics GP Partner

5 Responses to “5 Reasons to Switch from Outsourced Payroll to In-House Microsoft Dynamics GP Payroll”

  1. Well, I agree that Dynamics is much more efficient in some ways, but there is another issue to consider and that is responsibility for mistakes (which usually take tha payroll outsourcing company).

  2. This article is very nice…
    The advantage of this blog is that the gross pay and net wages of each and every employee is very easy to calculate….
    So good to see ya…
    ———————————
    Kiran Reddy..

  3. kelly says:

    how do I correct sales tax posted to the wrong state? we are filing our quarterly returns and discovered this problem for one employee who has direct deposit. we need to transfer the tax from one state to the other and also have the data correct for his w-2 for 2012.

  4. SSAE 16 says:

    Payroll processing is a real large disruption to your company, sometimes business owners consider outsourcing non-core work to an expert.