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 when outsourcing.

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 authorities.

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 tax compliance software that puts you in control of the entire process. It is a tool designed by and used by payroll tax professionals across the country. As a tool, it is easy to install. It eliminates the use of spreadsheets, redundant keying of data and is highly customizable. Most important, you will find the technical support exceptional.

For more information call: 212.643.1768, FAX: 212.643.1766