Agenda Item
b. Approval of the Renewal of the ADP Contract for Post-Payroll Processing Services - Renewal 2 of 4 (Not to exceed $230,000)
Summary: Presented by: Mr. Byron Schueneman, Chief Financial Officer, Division of Finance
Request: It is requested that the Board of Education approve the renewal of the contract with ADP for select post-payroll processing services under a Global Master Services Agreement. The initial term of this annual agreement shall end on December 31, 2023. There are four one-year optional renewals. With each renewal option, ADP may increase their fees by up to 4% upon 30-day written notice. This will be renewal 2 of 4. Each service provided under the contract will be billed based on the attached schedule of fees and actual transaction volume. The annual cost of the contract is estimated to not exceed $230,000.
Why: DeKalb County School District pays over 15,000 employees. Currently, post-payroll processing activities are managed by staff, Bank of America, Equifax, and Rapid Pay. The current process has experienced occasional problems with timely tax filing and garnishment distributions. The current system does not provide online access to W-2 information or tax and garnishment history. The current plan is to use Tyler’s Munis HR/Payroll and Employee Self Service Module for these processes and services. In the event that Tyler’s Munis HR/Payroll module and Employee Self Service Module does not meet the needs of our organization, we shall transition these processes and services to ADP.
Details: ADP was initially contracted in March 2021 to provide certain post-payroll processing services, including electronic wage payment; employee check payment processing; Pay card processing; commercial employment and income verification; employment tax filing; W2 processing; and wage garnishment. The intent behind securing these services was to organize a backup if Tyler’s Munis HR/Payroll module does not meet the needs of our organization, or if we need additional services or tools as a value add to our employees. To date, no costs related to these types of services have been incurred and we don’t anticipate using these services unless an immediate need presents itself during the conversion to Tyler’s Munis HR/Payroll module.
Although Finance hasn’t engaged ADP in any services, Human Resources has engaged ADP to assist with Unemployment Claims Management and Affordable Care Act Compliance Management. To date, ADP has invoiced $23,587.04 for these services.
Financial impact: This is a budgeted expense not to exceed $230,000.
The GL code from which the expense for certain post-payroll processing services, including electronic wage payment; employee check payment processing; Pay card processing; commercial employment and income verification; employment tax filing; W2 processing; and wage garnishment will be paid is: 100.2500.530000.00011.7200.9990.8010.050.0000.
The GL code from which the expense for Unemployment Claims Management and Affordable Care Act Compliance Management will be paid is: 100.2800.530000.00011.7400.9990.8010.060.0000.
Contact: Mr. Byron Schueneman, Chief Financial Officer, Division of Finance, 678.676.0278
Dr. Tekshia Ward-Smith, Administrator, Division of Human Resources, 678.676.0168
Effective: October 2023
Status: Approved by General Counsel