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Pipestone council approves Paycom HR and payroll system, citing efficiency and compliance gains
Summary
The council approved a Paycom HR/payroll contract July 6 that staff say will reduce manual payroll work. The one‑time implementation cost was quoted at $6,600; ongoing annual costs were estimated at roughly $30,000 depending on seasonal headcount.
The Pipestone City Council approved a contract to adopt Paycom’s HR and payroll platform on July 6 after a staff presentation and vendor demonstration.
Madison, Paycom account executive, outlined the proposed implementation and pricing. She said Paycom charges per active employee at $28.27 per employee per month in the city’s estimate, with a one‑time implementation fee of $6,600; projected costs for the remainder of 2026 were described as roughly $14,000 with full‑year recurring costs estimated near $30,000, subject to seasonal headcount swings. Madison described a three‑year pricing cap on increases: 0% year one, 4% year two and 5% year three if the company raises its rates.
City staff emphasized expected operational savings: Paycom would replace paper time sheets, reduce double data entry and provide mobile or kiosk clock‑in options with geofencing, which the city can configure by location. Staff said the platform includes eVerify, garnishment handling, paid‑family‑leave compliance tools and benefits reporting functions the city lacks in its current systems.
Council members asked about requirements for employee smartphones and possible kiosk alternatives; Madison said kiosks and multi‑login areas (for city hall, highway shop, etc.) are supported and employees would not be required to use a personal smartphone.
A council member moved to approve the purchase and the motion carried on a voice vote. The council directed staff to proceed with implementation planning and to manage the parallel‑run period before full cutover to ensure payroll accuracy.
Ending: Staff will schedule parallel payroll testing and training and return to the council with a timeline for cutover; implementation was described as an eight‑to‑nine‑week process aimed at going live for the first pay period in September.
