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Committee approves RFP timeline to outsource payroll and HR functions
Summary
Committee authorized release of an RFP to outsource payroll, timekeeping and related HR functions, with bids due Feb. 10; staff said outsourcing would improve compliance, onboard/offboard processes and reduce internal workload.
The Homewood City Finance Committee on Jan. 27 approved issuing an RFP to outsource payroll and associated human-resources functions, with a bid due date set for Feb. 10. The action passed 4-0.
Why it matters: Staff and committee members said the city currently lacks centralized HR capacity and that payroll-related compliance (including W-2s, 1099s and ACA reporting) represents a substantial risk and workload. Outsourcing payroll and upgrading related software would deliver timekeeping, onboarding and expense-reporting features and create standardized HR processes the city currently lacks.
Details and timeline: Staff said the RFP would be posted immediately and that bids would be due Feb. 10; the committee scheduled subsequent review meetings and anticipated making a recommendation after vendor proposals are received. Staff emphasized that outsourcing would not eliminate a local payroll coordination role but would free existing staff to focus on other functions.
Implementation considerations: Committee members flagged compliance risks and IRS penalties as primary motivations; staff said a third-party provider can provide subject-matter expertise for payroll, tax filings and ACA compliance. The committee and staff agreed to coordinate the RFP timetable with encode upgrade work and other concurrent projects to reduce disruption.
Outcome: Motion to post the RFP and set a Feb. 10 due date carried 4-0.
