Title
Consider approving Resolution No. 2025-030 authorizing the City Manager or appropriate designee to execute a contract for outsourced payroll services with ADP, Inc. for a three (3) year term in the estimated amount of $564,177.75, and take appropriate action.
Body
REQUESTOR:
Human Resources Department
BACKGROUND:
The City is exploring the efficacy and efficiency of outsourcing payroll services, managed by one (1) budgeted City position with support from the Deputy Director of Human Resources. Since its implementation in 2020, the Tyler Munis payroll system has consistently caused critical errors, glitches, missed paychecks, improper calculations, and other challenges that lead to distrust and other issues throughout the City. The issues result in an estimated 30% of additional research and time fixing issues rather than performing functional work. Implementing ADP will not only provide essential time for HR, IT, and Finance staff to focus on functional work and strategic goals but will also provide a level of access and utility to employees and leadership teams through expanded technology, reporting, and intuitive ease of use. HR, IT, and Finance are in alignment and committed to collaborating with the ADP solution.
DISCUSSION:
After review, the City has identified ADP Comprehensive Payroll Services as the preferred solution for payroll service outsourcing. ADP, like many other payroll services, offers a technology solution to combat payroll issues; however, ADP stands out by providing five (5) dedicated staff that cover all of our payroll services, such as processing, reporting, tax, audit and compliance needs, as well as dedicated live support for both HR staff and employees on issues ranging from payroll and time issues to benefits coverage. In addition, the comprehensive software suite from ADP provides critically needed infrastructure, most notably a true Human Capital Management system, which is the HR side of any enterprise system. This module ...
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