Glens Falls council approves Paychex payroll contract to reduce single-clerk risk
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Summary
The council approved a multi-year agreement with Paychex Inc. for outsourced payroll services aimed at strengthening internal controls for the city's 106 employees; first-year cost is $26,355.48, with lower annual costs thereafter.
The Glens Falls Common Council voted March 25 to enter an agreement with Paychex Inc. for contracted accounting and payroll services, increasing the city’s central data-processing expense by the agreed contract amount. The first-year cost is $26,355.48; the contract drops to $25,055.48 in each of the next two years, the controller told the council.
Why it matters: The controller and council members said the city currently has about 106 employees and one payroll clerk, a staffing pattern that leaves payroll vulnerable to human error, illness and staffing gaps. Outsourcing to Paychex is intended to strengthen institutional controls, provide third-party audit support and integrate with the city’s timekeeping system.
Controller Mark (first name used in the meeting) introduced Wendy Barrett as the new deputy controller and said the payroll arrangement has been under review because of internal-control weaknesses. "That poor clerk cannot take a vacation," the controller said, describing the risk. He said Paychex offers reconciliation and audit support that will allow auditors to review third-party-generated payroll records instead of relying solely on internal documents.
Council members asked about strengths and weaknesses; the controller said the vendor will integrate with the city’s new timekeeping system and provide improved audit documentation. The council moved and seconded the measure and approved the contract by roll call vote.
The council did not provide a detailed line-item breakdown of current payroll-related costs during the public discussion; the controller said the city currently pays about $10,000 for its current supplier database and expected savings or re-negotiations with the current vendor if Paychex is adopted.
The implementation steps discussed included coordinating the Paychex integration with the city’s timing system and ensuring HR and payroll processes are aligned during the transition; the controller said the vendor expects a smooth integration.
