During a special meeting on May 27, 2025, Hays County officials discussed the potential outsourcing of payroll services, a move aimed at addressing ongoing issues with the county's financial reporting and compliance. The conversation highlighted the challenges faced by the county in keeping up with technological advancements and maintaining accurate payroll processing.

One of the key points raised was the need for improved security and efficiency in payroll management. Officials noted that the county has struggled to implement its existing payroll system, UKG (formerly Kronos), which was purchased two years ago but has yet to be fully operational. The county has spent over $12,000 on this system, but manual calculations and errors have persisted, leading to complications in tax filings and compliance.

The proposal to outsource payroll services was presented as a potential solution to these issues. By transferring payroll responsibilities to a third-party vendor, the county could alleviate its liability for payroll errors and ensure timely tax filings. This would also allow county staff to focus on other responsibilities without the burden of payroll processing.

However, concerns were raised about whether outsourcing would truly resolve the underlying problems. Some officials expressed skepticism, noting that the county would still need to verify the accuracy of the data sent to the outsourcing company and ensure compliance with payroll regulations. The need for ongoing audits and reconciliations was emphasized, suggesting that simply shifting the workload may not eliminate the challenges faced by the county.

The discussion also touched on the importance of reviewing current payroll processes to identify inefficiencies and areas for improvement. Officials acknowledged that procedural issues, such as prepayment of salaries, have contributed to ongoing payroll discrepancies. A fresh perspective from an outsourcing company could help pinpoint these issues and lead to more effective solutions.

As the meeting concluded, officials agreed on the necessity of exploring outsourcing options further. They plan to work with purchasing experts to draft a request for proposals (RFP) that will outline the county's needs and seek qualified vendors to address its payroll challenges. This step is seen as crucial in determining whether outsourcing could provide the efficiency and accuracy that Hays County has been striving for in its payroll operations.