DKS's picture

DKS

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Save Money With ADP

When it came to our annual report this year, I was surprised to see our cost for ADP payroll was so low; about $260/yeear, with four full time staff. When I asked our treasurer about it, he said the secret was to pay staff on the 15th of the month by cheque or direct fund transfer (no charge at our credit union) and treat it as a salary advance. ADP pays staff by direct deposit at the end of the month and records the funds transfer on the 15th as an advance.

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carolla's picture

carolla

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Saving money is a good thing!  thanks DKS - I've passed it on to our treasurer. 

GordW's picture

GordW

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Or simply pay staff once a month--same cost as what DKS outlines.

 

 

martha's picture

martha

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Good work!  I'm glad someone is paying attention to Ministry and Employment's suggestions on saving money with the payroll! The cash advance strategy is very popular, especially in BC, where a bi-weekly payroll is the law.

This information is available, among other places: http://www.united-church.ca/files/minstaff/pastoral/payroll/faq.pdf

"Q: We pay our staff twice a month. How can we handle this to avoid doubling our service charges?

A:

If you have ADP process two pays a month, there will be two service fees. To cut down on costs, a treasurer can issue a manual advance to staff for the usual "first pay," then report the advance to ADP for end-of-month pay. ADP deducts the advance from the net pay before deposit. " page 3/nr the bottom

DKS's picture

DKS

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ADP gave the treasurer the suggestion when we signed up...

GordW's picture

GordW

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It was even in the printed material with the sign up  package DKS.  Unfortunately I know of at least one charge where the treasurer chose not to reead everything and then complained about the cost.

Rev. Steven Davis's picture

Rev. Steven Davis

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I understand how this process would work, but doesn't it kind of make mockery of the system that was supposed to make everything simpler?

DKS's picture

DKS

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Rev. Steven Davis wrote:

I understand how this process would work, but doesn't it kind of make mockery of the system that was supposed to make everything simpler?

 

How so? If you are paid (or required as in BC) on a 2x monthly schedule. it cuts your costs with little downside.

martha's picture

martha

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Exactly, DKS: All, keep in mind that a treasurer can opt to run payroll "As Is". Simply standardize the 'advance' (usually 1/2 of the net, or pay after all deductions) and let ADP know that's the way it's always going to be and you never even have to speak with ADP until year-end! ADP's United Church service line: 1-877-377-4784.

GeoFee's picture

GeoFee

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I found that ADP has twice deposited my pay this month; a double salary. No doubt our treasurer will sort this out. A first for me, being paid twice what I am worth on the open market!

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