Shelton may hire new payroll system vendor

The city may hire a new company to handle its payroll services.

Paylocity Corp. would provide a Web-based system that likely would make it easier and less expensive for the city to make certain updates on its own.

The city has used ADP, a well-known payroll services firm, for a long time, but many departments “are anxious to move to a newer platform,” said city Finance Director Paul Hiller.

“We get billed by ADP for absolutely everything,” Hiller said. “Nothing is free.”

Positive recommendations

The city received proposals from various vendors and then met with their representatives, including ADP, according to Hiller. Other cities and towns that use Paylocity gave positive recommendations.

Paylocity has been in business 16 years, and many employees previously worked at ADP, Hiller said at a recent Board of Aldermen meeting.

After a discussion with Hiller and Thomas Taylor, a mayoral administrative assistant who handles some human resources duties, the aldermen voted to approve “in principle” a contract with Paylocity.

Some of the details will be finalized in the next few weeks, and aldermen should vote on the actual contract at a Nov. 7 meeting.

Possible savings

Hiller estimated Paylocity would save the city 20% to 25% over current payroll costs, which generally have been in the range of $100,000 annually.

There will be some start-up and transition costs with the change, Hiller said.

Paylocity’s Web-based system would allow city employees to check on payroll-related issues such as sick and vacation time on their own, he said, and it would be cloud-based.

Make switch by Jan. 1 is goal

The goal is to switch to Paylocity on Jan. 1, with the start of the fiscal year being a good time to make the change.

There are questions about whether Paylocity would take on the city as a new account if the final contract isn’t approved by Nov. 1, but Hiller said approval on Nov. 7 should provide sufficient time for Paylocity to be ready for the start of the calendar year.

Other possible benefits

Hiller said the company would customize the city’s system with its individual labor union contracts. He said it also could be integrated with the city’s budget system, helping departments better manage spending.

Taylor said Paylocity would enable city departments to communicate better with each other on payroll matters.