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Making Wilmington’s Government Work More Efficiently: City Payroll Functions Will Be Outsourced

Post Date:05/31/2018 3:30 PM

Wilmington Mayor Mike Purzycki announced today that, as part of an ongoing effort to improve the efficiency of City government, the payroll functions of the government will be outsourced beginning July 1. Wilmington has entered into a contract for the administration of payroll services with ADP, one of the nation’s leading human resource companies, which currently serves more than 5,000 public sector clients around the United States.

“Payroll processing within our HR Department is not functioning optimally and improvement efforts have been unsuccessful,” said Mayor Purzycki. “We will instead adopt a best practices approach to payroll management which is used by governments and private businesses around the world to produce a cost-effective, integrated payroll processing system that will improve City government efficiency.”

The Mayor said the City’s payroll function is a wide-ranging government responsibility that affects all City employees, as represented by the fact that salaries account for 67% of Wilmington’s annual operating budget of $162 million. “Our citywide payroll system has to operate on all cylinders,” said the Mayor.

Wilmington’s Department of Human Resources Director Charlotte B. Barnes said contracting with ADP payroll services provides the opportunity to modernize payroll processing, 24-hour vendor support and access to expertise to address complex payroll issues.  Additional benefits include: 

  • More timely and accurate compliance with regulatory payroll requirements for the Internal Revenue Service and Delaware Department of Labor
  • More timely processing of year-end tax reports
  • Real-time access for employees so they can manage tax and/or direct deposit changes
  • Real-time access for employees to their pay stubs, W-2 and 1095 tax forms
  • Improved inter-departmental sharing of payroll information and inter-governmental reporting of information to the State of Delaware and the Equal Employment Opportunity Commission
  • Real-time processing of employment and/or income verification

The decision to relocate payroll services to a private company will result in a workforce reduction on July 1 of three non-union City employees in the HR payroll unit. Barnes said her Department will work closely with the employees so they understand their options moving forward as allowed by City Code. Options include retirement if they are eligible, a request to be moved into a vacant non-union position if they have the proper qualifications for that position, or a request to be moved into a currently filled non-union position if they have the proper qualifications.  If the employee is successful in moving into a filled position, then the employee who had held that filled position could be laid-off.

The Mayor and HR Director today expressed regret that reductions in the workforce were part of the decision to outsource the City’s payroll functions, but stressed that the City is committed to excellence in service delivery for citizens as well as for City employees.


News and information from the Office of Wilmington Mayor Mike Purzycki 

John Rago
Deputy Chief of Staff for Policy and Communications
Mobile: (302) 420-7928
Paul Ford Jr.
Communications Specialist
Mobile: (302) 530-2171
Dan Sanchez
Digital & Social Media Manager
Mobile: (302) 605-0026

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