Below is our analysis of using Sage accounting package in conjunction with an “Outsourced” payroll solution vs. utilizing the “In-House” solution with Sage accounting package and Sage payroll module in conjunction with Piracle and Aatrix services. We compared the two options to determine which solution gives Sage users the most flexible payroll tools. Here is what we found:
Integrated with Sage Accounting
Both solutions work with Sage accounting software, but the In-House (Sage) payroll module is completely integrated into the native accounting application, so you only have to enter the data one time. An Outsourced solution requires an external .csv general ledger file that is imported into the Sage accounting application, requiring redundant data entry.
Comprehensive Job Costing Model
All job costing is not equal. We found a clear advantage to the In-House (Sage) payroll solution.
Outsourced:
With the Outsourced solution, job costing only factors in labor and does not consider materials, which does not accurately portray the true job cost. In order to consider the materials, the user must enter the material values, get the output from the Outsourced provider and import those values back into the Sage accounting package.
In-House:
When using the In-House Sage payroll module, the general ledger is completely integrated, which includes both labor and materials for the most accurate measure of the true job costs.
Tax Services
Both solutions provide tax form depositing and filing services.
Outsourced:
You can deposit, and file payroll taxes and generate w-2 and 1099 forms using the Outsourced solution’s services.
In-House:
You can deposit, and file payroll taxes and generate w-2 and 1099 forms using Aatrix’s services.
Eliminates Double Entry
Using the Sage payroll module, the general ledger and job costing functionality is seamlessly integrated, eliminating double entry.
Comprehensive Check Fulfillment
In this instance, both solutions offer the ability to send checks to individuals, but there are unique differences to each solution.
Outsourced: Offers limited flexibility with payroll disbursements. The Outsourced solution process will print and mail payroll checks or direct deposit advices, but once they are printed, they must be distributed, in bulk, to a department or location. Once received by the location or department, the checks or direct deposit stubs must be manually distributed to each employee. If the checks are received without a signature, a wet signature is required prior to distribution. If a same-day final check disbursement is needed, it must be printed on expensive pre-printed check stock, which exposes the organization to an unnecessary check fraud liability.
In-House: Offers the most flexibility for payroll disbursements. Checks can be printed and direct deposit ACH files can be generated In-House from one central location or can be sent electronically to remote job sites for local printing. All checks can be printed complete with multiple electronic signatures. If a same day final check disbursement is required, simply use Piracle’s software to print a check onto secure and inexpensive blank check stock with no inherent exposure to check fraud.
ACH Processing for Multiple Accounts
Both In-House and Outsourced solutions provide a simple way to generate direct deposit ACH files complete with a physical check or an electronic pay stub accessed through an online portal.
Uses Blank Check Stock
Only the In-House solution utilizes Piracle’s blank check stock to print payroll checks. Blank check stock is a fraction of the cost of pre-printed check stock. Not only is it less expensive, it is more secure. All the information that makes a check a negotiable document is printed in real time, making your organization significantly less prone to fraud.
Choosing an In-House or Outsourced solution to your payroll needs is not an easy one. A closer look into details of each solution reveals clear advantages to bringing your payroll In-House with athe complete offering from Sage, Piracle, and Aatrix. If you would like to discuss these options further, please contact: (877-616-6595) at Strategies Group or visit www.StrategiesGroup.com.