Transcript

00:00:00 - [JOSH_FORD]
Time frame sped up. Is that correct?

00:00:03 - [LISA_LAW]
I think we'd like to have be in a place where we've seen demos for both vendors that we're vetting and have the ability to to make a decision by or at least have all the information to have a decision to make a decision, you know, to do that by next week. So Okay. You know, you I I transparently told you, I mean, we're UKG is coming in tomorrow to do their demo. Right. And so I think from a pacing standpoint, I mean, you guys are providing us similar kind of structure. So we were just hoping to be able to, like I said, get pricing and then kind of do a a side by side with, our internal team to figure out, you know, where we would like to move forward.

00:00:54 - [JOSH_FORD]
Okay. Cool. Well, I'll update everything on this to kinda after we get out of here just to put kind of the steps if need be. I don't know. Would you need an executive alignment call? I mean, I I know that we have Scott and yourself on here, so I didn't know if there's anybody else that you would wanna have conversation with that we would need to talk to. I can remove that or leave that or schedule that however you want. But kinda like where I see what we what I typically do is after the pricing call, it's a presale call. This isn't saying, hey. Look. You're going with us, but it's like a if the team wants to see about what implementation looks like before they make the the final decision, then yes. Right? So that's what this implementation service alignment call would be. I can set that up if need be. But, really, those are kinda, like, what I see us doing. Obviously, these times aren't up to date based off of I wanna make sure I got our conversation correct before I started updating this and putting this aligned a little bit better. But we have time to do all of that stuff if you want. Right? We got plenty of time to do that. Like I said, I'm willing and able to hop on a thirty minute, forty minute call next week sometime if need be to to discuss anything. So here to help you.

00:02:05 - [LISA_LAW]
Yeah. I mean, certainly, the implementation and service alignment call might be beneficial. I I think from a executive alignment standpoint, I think the Mhmm. The executive leadership team, which Scott sits on that group, I mean, I think they're gonna trust us. I I've got a

00:02:24 - [JOSH_FORD]
Yeah.

00:02:24 - [LISA_LAW]
A a decent amount of stakeholders that are involved in this process. So if we determine where we wanna go, I don't know if it requires any much more executive alignment beyond Yep. You know, Scott and I's voices and saying, like, hey. This is what we've chosen, and this is where we'd like to move forward with.

00:02:42 - [JOSH_FORD]
Perfect. Perfect. Alright. So I'll remove that, like, step, and then I'll update the timeline of things to do. Obviously, it's a ten week we're looking about a eight to ten week timeline, so I wanna make sure there's room there. But I'll update all this and just say, hey. Look. What we can do to obviously have the decision made, what it looked like to execute everything if if we are the vendor of choice after everything's said and done. So quick recap of everything. Just kind of I wanted to go through, like, maybe high level executive summary. I know you you probably already know all these pain points, but it just we're putting these back out here. Right? Like, really what your current state is and what the future state would look like when you move to Paylocity, then we'll jump into pricing. Is that is that fine? Yeah. Cool. So heard it loud and clear. I think the service aspect with Paycor is kinda down the drain per se. Right? Like, can't talk to anybody. Doesn't sound like anybody's there to to help. So really, really trying to focus on on being a better service provider and partner to you. Multiple systems disconnected, right, from the Canada domestic side. Recruiting onboarding benefits is not so disconnected. It's with the well, I mean, it is through employee navigator, but, obviously, we're gonna connect there. Performance learning engagement tools. There was checklist that needed for onboarding. A lot of manual entries. This goes back to the disconnected systems. Right? Being able to start payroll batches early. Sounds like there's no workflows or limited workflows today. And then possibly looking for, like, just another system for background check. And there was a lot. I could have pulled out all the notes. I just kinda highlighted some key ones real quick. And how would you say I mean, I think the big thing is manual entries, multiple systems, bad service. Right? And I think that's where the the the home run is gonna happen when you when when you partner with Paylocity. Anything you think I should add there in the future or anything just to kinda recap?

00:04:38 - [LISA_LAW]
I mean, just from a process improvement standpoint, I mean, we we talked about performance. And right now, we we do those in spreadsheets.

00:04:48 - [JOSH_FORD]
Right.

00:04:48 - [LISA_LAW]
I think we we talked during, you know, maybe the the discovery call and then the demo a bit about performance. So I would say that's the only thing that, you know, definitely a something to entertain, here, but it's not I mean, it it's something I want to have.

00:05:09 - [JOSH_FORD]
Yeah. For sure.

00:05:10 - [LISA_LAW]
But it's more of just like a process improvements thing.

00:05:14 - [JOSH_FORD]
For sure. Okay. Cool. I'll add that in there and just make another bullet point for that when I send this recap over. So there's a lot that we're trying to do to help. Right? At the end of the day, it's trying to make you a unified end to end platform with the h the HCM platform, right, from payroll all the way reporting analytics and so forth. Right? Automated, build in work controls, reduce errors, audit exposure, start the payroll batches early, put workflows, right, processes process automation. Right? Integrations, SAP g GL upload, the four zero one k, employee navigator. We're also giving you open access for if there's any to to the API for us. So if there's any IT products, projects that you wanna connect or pull data from, you can definitely do that in the future if if you wanna scale on that that matters. So paperless. Right? Getting rid of any kind of paper that's out there, mobile friendly, recruiting, onboarding, recruiting to onboarding, making data flow seamlessly through one through from one platform to the other and storing that in a single centralized place from handbooks to policies to code of conduct, and then integrating the E Verify, centralizing the performance, learning compliance, all that stuff in in one centralized location for the employee record. On the timekeeping, there were some things capturing the tardies, absences, and task level tracking capabilities. Mobile friendly. Right? Making it easy for your p your employees and your managers to approve time, PTO requests, so forth. Then the big thing is, right, having a dedicated account manager, somebody to talk to. In the process, I think implementation was pretty bad with the pay corp aspect. What what we got for you today, we'll have a project manager based off what everything we're looking at, a project manager on top of implementation consultants that would be involved in the key areas. So they're subject matter experts in those areas. Scalable long term partner. Right? Not gonna grow out of us. We're gonna continue to grow as an organization as you see with future proof in the technology with AI embedded tools, the logo kinda get in the way. But we have Paylocity for finance, Paylocity for IT, and then the TPA, h e HSA, FSA, COBRA stuff. Once again, that's just the idea of look. Paylocity is continuing to grow to fit the needs of organizations, and that's there when need be, if need, as a partner to scale into. Any questions before I hop into the pricing?

00:07:50 - [LISA_LAW]
I do just have one question, Josh. When Yep. It's interesting that you asked about scalability. I mean, the sweet spot that I see out there on all of the the public forums is, you know, hey. Paylocity is good up until x number of headcount, and then after that, you know, needing to customize a lot of stuff becomes a little more trickier. I mean, is is there any validity into that, or where would you say, like, hey, you know, you you know the size of the organization that we are now. And if the company decide you know, chooses to scale, like, is there a place that you feel like we can still handle it? Or is it like, hey. Beyond x number is is not realistic.

00:08:35 - [JOSH_FORD]
Yeah. No. That's a great question. I would say first off, we at Paylocity use our own product all the way through, and we have 6,000 employees. Right? So I think that's the number one thing. Another thing is our we have a large enterprise and an enterprise group that's that's our fastest growing areas. Right? So we would consider what we're in today is majors my major market. We scale from anywhere from 50 to 500 employees. Current state is what I work with. On average, I think our average size employee is anywhere from one fifty to 300, but that's including our we have one system for everybody. So we have one system to where we'll have one employee groups that are with our accounting firms that they're reselling till they're all the way up to, like I said, 6,000 employees. So I don't think there is in my personal opinion, based off what I know, I would say there's not a cutoff point. I would say once you start getting a large no. No. I say that. Large enterprise where there's more connected systems or more stuff, there would be probably more integrations through our API. But I see us growing, and I could and, Mike, you might wanna jump in too. But I see us grow into that 500 to 1,500 plus employee group as kind of our fastest growing opportunity out there.

00:09:50 - [MIKE_MECKLENBURG]
Yeah. Just give me an example. We actually we have a broker partner I just spoke with yesterday, and, they have a 1,500 employee group that is actually being acquired by another company. The 1,500 employee group is currently utilizing Paylocity, and they actually wanna take the whole group and put them on Paylocity. That's, like, sort of the way forward for them. So, you know, I've and, you know, I know you guys you're you're not to the 1,500 mark yet, but, you know, as you get there and as you scale, you know, and and in some cases, people even look at our product and there may be things that they're not utilizing that might make more sense when they get more employees. You know, there there's different pieces in there, you know, such as the the spend management piece or, you know, the head count planning piece becomes even more imperative the higher up that you go with the with your employee count. But, yeah, I've got a, we have another partner locally here that they're they're strictly working with, companies that are just about about over a thousand employees. And we have an integration with their Benadmin system, and we were the first to integrate with their Benadmin system. And they would recommend us in a heart heartbeat, basically, to anybody that they have to, you know, anywhere from staffing firms with 2,500 to 5,000 active users, you know, down to, you know, maybe a manufacturing facility with 1,500 employees. So it really runs the gamut. I mean, you know, not to say that, you know, those workdays out there and, you know, companies like that aren't aren't good and they don't do a good job, but a lot of times, they might be a little bit of overkill for, you know, what you really need and what you can utilize. And, you know, it it it sorta depends on your needs and outside ERP systems that you might have and, you know, integrations with those type of systems. But, you know, generally, in your space, I mean, we've I I would feel extremely comfortable saying we could go up to 2,000 to 3,000 users with, with our product easy, you know, if not even more. So I've talked to multiple clients who are 5,000, 6,000 employees, and they're all super happy with the system. And, does it have its quirks? Yes. I mean, it it happens in every system. There's no perfect system, but, you know, we we're really developing the product every day to make it better and and make it more upmarket as well.

00:12:13 - [LISA_LAW]
Good to know. I appreciate that.

00:12:16 - [JOSH_FORD]
Yeah. So we could have just said no limitations. Right? But we've been Andrew,

00:12:21 - [MIKE_MECKLENBURG]
do you wanna tap on to that?

00:12:23 - [JOSH_FORD]
Go ahead, Andrew.

00:12:24 - [ANDREW_PORTER]
I was just gonna say you never know these days where where growth happens. So if that happens to be an acquisition or something outside of Canada and The US, I have a couple clients, personally myself, that are in, north of 20 countries, north of 2,000 employees as well, just from the global payroll aspect. So scalability could happen, you know, any country for that matter.

00:12:51 - [JOSH_FORD]
Awesome. Thank thank you, Andrew and Mike. Alright. So we'll jump in. I'm gonna do my pricing first, and then I'll pass it over to you. Okay, Andrew?

00:12:59 - [ANDREW_PORTER]
Sure.

00:13:01 - [JOSH_FORD]
Alright. So I'm gonna show you two here. Number one, I'm gonna show you what it would we're gonna obviously give you some love and throw a discount at to you there for you. But, anyway, the first this the first one we're seeing here is basically just showing no discount. Right? I'd like to just show you both.

00:13:17 - [ANDREW_PORTER]
I think you gotta switch.

00:13:19 - [JOSH_FORD]
Oh, well, that would that would be helpful. Right? I'm looking at it. Nobody else know. But alright. Give me a sec.

00:13:29 - [SCOTT_WARNER]
I thought he was just talking it up before he switched the screen for us. I was

00:13:32 - [JOSH_FORD]
Yeah. Know. You know? I wanted to sticker shock you. Right? The shock and all.

00:13:38 - [MIKE_MECKLENBURG]
Andrew's Andrew's gotta get his green on too.

00:13:40 - [JOSH_FORD]
Yeah. You know what your green on, Andrew?

00:13:43 - [ANDREW_PORTER]
I don't know, man. I'll change. Sometimes you forget the holidays.

00:13:50 - [JOSH_FORD]
Alright. So I am gonna show you two two proposals here. First one, like I said, this one's with no discount just to give you an idea of where we're at. And then I'm not gonna go in detail with that one. Just give you an idea. Like I said, you do one time total employees. This is including the Canadian database for HR products. Right? And then Andrew's gonna talk about the payroll separately. One time fees monthly and then the total annual investment. Doing the math, just throwing it out there. The total annual investment is not gonna break down the PEP. It's gonna act it's not just gonna be the monthly. It's gonna actually add the w twos and the ten ninety fives in it. So when you start math and the math, it doesn't that doesn't make sense until you add in the the the year end stuff. But let's just jump over here to what we're really looking at today. So once again, monthly fees, one time fees, and total annual investment at 61,000. So at Festool, we have the we're gonna break it down into three separate, what we call control groups. So it'll be a one stop to where you're you're gonna be able to navigate between those groups, still be able to report across those. I think you had air did Arrow have different control groups, Lisa?

00:15:07 - [LISA_LAW]
No. Was all just one.

00:15:09 - [JOSH_FORD]
Okay. So this will this will have a database basically for your temp employees, your Canadian employees for the HR products, and then your your regular full time employees. I'm gonna scroll down here and then these so starting off group one, group two, group three, so kind of labeling that out. So group one is gonna be your full time. We're doing the payroll implementation, general ledger, and labor, human resource, time off, and building that selfservice portal. We're gonna build out the four zero one k integration and then the employee navigator setup. One thing I threw on here, I think we discussed this. We can remove it if need be, but it's just a onetime fee of, 600 a piece of department position history import and pay rate history import. Group two is just gonna be for the timekeeping for temporary employees. So to set that up, six quantity, 15 rates, 90.90 dollars. Group three, some of the so you're gonna see that this this is gonna be a little less than your temp your full time employees because we can't some of the applications aren't for example, payroll is not gonna be involved in the Canadian setup. So, really, the human resource, time and labor, and the selfservice portal for the Canadian employees at 11.15 dollars rate. So the onetime setup, we're looking at 6.66 665. Any questions on the on the setup fees?

00:16:49 - [LISA_LAW]
Nope.

00:16:51 - [MIKE_MECKLENBURG]
Alright. As a real quick, the the history import, that's that's an unlimited amount of years too. So, yeah, the the entire history that you have for department position and rate history will come over.

00:17:05 - [LISA_LAW]
I appreciate that. I I'm not sure how far back Paycor did when we went from from ADP over to Paycor. I mean, Scott's probably got lot lots more visibility. I mean, this is, you know, I think time number five that we're changing HCMs. So I think having the historical view is is important. So if you're able to to go back as far as as we have, that that's always beneficial.

00:17:32 - [MIKE_MECKLENBURG]
For sure. Perfect. Yeah.

00:17:36 - [JOSH_FORD]
Jumping into the the monthly. So we've got the first control, which is the full time employees. Right? The base, which is the processing and the and the tax filing. And then the quantity is the number of employees. So that's the only way this monthly goes up is it fluctuates with employees going up, like, employees or letting employees go. We're not locked into this price forever. Like, if you go down employees, and that might be something you might wanna check with the the competitor. I've heard in the past to where if they they lock in the price and then if you let let's say you have a downsizing, which I know we talked about scalability, but let's say you go the opposite direction, your your your monthly bill is gonna go down based off the employee headcount. Right? It's not gonna be stuck in that same price that you signed for today or what whatnot. So we're at a per employee per month is 32.36, and what all is included, we'll go through that next. Payroll processing, you get unlimited pay runs, some bonuses, all of that. They're not getting paid you're not getting charged for any extra pay runs. We talked about the retro pay, the prorated pay. If they're hired in the middle of a a pay cycle, we're gonna retro or we're gonna prorate that pay accordingly, whether it's salary or hourly. New hire reporting, we're gonna do all that when you bring people on to direct deposit. On demand pay, we don't really hit we didn't really hit this up. It's a feature that just it's there if you wanna use it. But what it is is earned wage access. So I think you're familiar with it, Lisa. It just allows you to, you know, give employees the the capability to get, you know, 200, 500, whatever you wanna allow that limit to be if they just to get into work, if they have a flat tire or something like that, for an example. You can print off your checks and hand out physical checks if need be. We will do the tax filing and do all the payments and then the general ledger reporting that'll come out to match up to, I believe, it's SAP for your ERP system. On the time time aspect, we're gonna do the time and attendance. We're gonna just basically be able to capture all that time that we discussed in during the the demo and then, obviously, the time collection aspect. Right? So doing all the time aspect. Any questions on those two real quick before I jump into human resources?

00:20:02 - [LISA_LAW]
Nope.

00:20:03 - [JOSH_FORD]
Alright. So the HRIS fortune portion, we're gonna have the HRIS management. Right? Just your employee record, have everything in that one record, workflows, the process automation that we discussed, centralized document libraries, so being able to have all of the, you know, the DocuSigns, the handbooks, all of that in one area, the employee record per se, state compliance, fillable forms, unlimited custom fields. So we keep growing that. At at one point, that was that was just you had a few custom fields. Now we have unlimited and they're reportable. Time off management, taking advantage and all that. The employee selfservice, position management, giving you an org chart, skills and search management. So what that means is, obviously, if you have a forklift driver or a CDL that's expiring, get an alert based on when that's getting ready to expire so they can renew that in a timely manner to stay compliant. All the ACA tracking, ten ninety fives, 10 I c's, 95 c's, the compliance management, and then employee verification. Moving on to talent, recruiting, onboarding, through LMS in there. I know we discussed that a little bit, but we went ahead and put LMS on there with the safety training so that it gives you the the OSHA trainings, blood work passages, forklift trainings, and a much more. I think there's a, like, 30 different trainings for the safety trainings. Performance, we talked we discussed compensation management, headcount planning.

00:21:37 - [SCOTT_WARNER]
Real quick, Josh. PayLocity also allowed the ability to import, like, custom training modules. Is that right? Am I remembering correctly?

00:21:45 - [JOSH_FORD]
Yeah. Absolutely. So with the training, you can build out your own training. So if you have, like, videos and stuff, you can bring those in. There's certain file formats that they are, but, yes, we you could build out your own training. So if you have those, just create that own module and then sign it out to employees and be able to track them.

00:22:01 - [SCOTT_WARNER]
Okay. We just have certain things that have been custom developed over time, and we can adopt the format to fit. I just wanna make sure that was included in here as well.

00:22:08 - [JOSH_FORD]
Yep. A 100.

00:22:09 - [SCOTT_WARNER]
K.

00:22:13 - [JOSH_FORD]
Employee experience. So this is just your video, AI assist, the community, rewards and recognition, and then the mobile app. Insights and reporting, giving you the market pay data, data insights, dynamic reporting, and the modern workforce index. We don't really talk about that much, but really what that is, it's an ROI tool that's built into the system. Maybe we should talk about it more because it's always good to understand that how am I utilizing the system? We're gonna compare you to your other NAICS codes that are within the Paylocity platform, tell you what they're doing, how they're doing, what they might, hey. Throw a survey out or, hey. Put a pulse, something out on community that says, hey. Look. Let's offer lunch to the employees or whatever. It really gives you a good idea of how how to utilize the system, where we're underutilizing the systems, and how we maximize the the the price that we're paying today and and how we're going to continue to grow with within the system and use the tools that we have. Integrations, got Lincoln Financial, employee navigator, and then like I said, you have the open API access. Customer service, it's key. Right? So you're gonna have a dedicated account manager. Always wanna have on on demand training, so we call it peak. So just basically Google everything. If you want self help, you Google everything Paylocity, and then you have unlimited product training within the system. So that's that's basically your full time employees. The next two controls are gonna be simple and easy. Any questions on what I went through so far? Nope. Alright. So for the temporary employees. It's just time and attendance. Six employees, 4 rate, it's 24 a month. And then all of this, basically, same with the part of the HRIS because it's HR only is what we call it, is you get the you get to put all those temporary employees in a certain position or in a own their own database and records, so so to speak. Human, for the Canadian employees, got eleven, six 16.99. Time and labor, that's the total per employee per month just for the HRIS stuff, and we'll go through all of that. So it's we got time and attendance. They'll have their own employee records, all the h r a component HRIS components there. Any of this stuff that you don't need for the Canadian employees can move. So that's a good thing about having these different controls. If, like, recording I put recruiting, onboarding, learning, and performance, all of that stuff is on there, headcount planning. If any of that needs to be removed, we can remove that, and it will drop the rate down a little bit on the 16.99 Pepam. So just to just to keep you aware, it doesn't have to match exactly how the full time employee looks.

00:25:29 - [LISA_LAW]
Okay.

00:25:30 - [JOSH_FORD]
Employee experience, same thing. Just everything that we've had in the so those were the the key items that I can add that they're basically matching with your your payroll on the domestic side. Any questions on those three, I guess, company sets?

00:25:52 - [SCOTT_WARNER]
Not from my side.

00:25:54 - [JOSH_FORD]
Cool. So at the end, these are annual fees. Right? We'll do the w two ten ninety nines, basing it off a 142 as of today. Right? And the 10 we'll file the ten ninety five forms.

00:26:10 - [LISA_LAW]
Are How about those ten ninety fives. I mean, our broker files those for us right now. So if if we're which I guess I need to probably just do a little bit of a cost comparison here since they use Navigator, ultimately, we'd be integrating Navigator with you guys. Yeah. It could be beneficial to have you send those on our behalf, but certainly just wanted to throw that out as, you know, that may not be required for us, Josh.

00:26:38 - [JOSH_FORD]
Yeah. No problem. Well, we can remove it. We definitely can remove it and not not take care of that for you. Not a big deal either way. I'll leave it on there so you can at least cost compare with Yeah. K. The usage based fees, garnish garnishment and services. So, basically, that's our garnishment full service garnishments, tax registrations. So once again, they're usage based. If you decide that you're getting into another state, locality, whatever, you don't have to register for that. We will register for you for those. That way, the taxes are compliant. If for some reason you wanna register and you do, let's just say, get into Ohio or Pennsylvania or wherever that may be, let us know, and we'll get that removed if you wanna do it yourself. Next day delivery for checks. Split pack. I don't know why we can never remove this, but it's there. Right? So what this means is if for some reason you decide to have physical checks and you want us sent to you and you want us to go ahead and split them in different departments, HR, IT, sales, distribution, whatever, we will split those in to those different envelopes and send them to you so they're basically split up into different departments. Once again, those are all usage based based on when you use them. If you use them, they may never be used at all. Any questions before we jump over? And like I said, I'll send all this stuff over. But any questions before we jump over to what Andrew's gonna show us?

00:28:15 - [LISA_LAW]
Nope.

00:28:16 - [JOSH_FORD]
Alright. Sending it over to you, Andrew.

00:28:20 - [ANDREW_PORTER]
Alrighty. Thank you. So I'm gonna go over two quick, documents here. I will certainly send these over, but the, the first one I wanna show you is kind of the background, you know, behind our proposal, if you will. So this is something that we develop for every country. What we're really doing from an international payroll delivery perspective is all the processing, everything in the system, but everything the government requires in terms of reporting, tax, social benefits, I have you'll see it on the the proposal, we have workers' comp and RRSP reporting and those types of things. So this is really just gonna break all that down and, you know, to whomever's reviewing the proposals, give a good list of everything that we'd be doing for you as part of the process. So just wanted to mention I'll send that as well. It'll go over, like, the starter and lever process in a little bit more detail, which is actually on the, on the proposal. That's gonna handle those things we talked about with any registrations for new hires, those record of employment forms for the terminations that we'll we'll complete on the back end for you. So it's a good read for a little bit of background. So everything that's, contained in that scope of services document essentially is all bundled together into our global payroll services line right here. So this will include all that. And there's really two keys here, per payslip, essentially per employee, and then, a base charge, which is one time per payroll. So to get my total over here, I take 10 times 11 plus one thirty equals 2.40. And this is this would be representative of the per processing cost at 11 employees. So, again, like Josh said, if it goes up a couple, if it goes down a couple, it's really gonna go in the multiples of of 10. Times this by '26 is how we get to our annualized estimate here. And then one time setup, you know, is just gonna cover everything associated with getting not only the system set up, but all of those power of attorney type items so that we can do all those recordings to the CRA and the government bodies for you. And then these are those starter and levers that I was talking about. So these are just a per occurrence when you have a new hire or you have a termination. These would be, you know, at time of either event and for us to handle all the, you know, red tape associated with, with the Canadian government. The next section is your year processing. So this is your company documents and your t fours for your Canadian employees. Similar to w twos, just different terminology. And these rates here I can actually when when I send this over, these these should mirror each other. So this will be a 130, and this will be 10 here for we we like to keep it the same as your processing rates so that it's almost like you're running another payroll at the end of the year with with the rates. Next section, we're getting into some of the optional features that we kinda picked up along in our conversations, but, these are all now just once a month charges not per payroll, and these would be to do your workers' comp reporting to the provincial bodies, to do your RRSP reporting and remittance to the benefit provider, and then this would be for the GL service. So this is just gonna make sure that after you run and approve your payrolls, you have an uploadable file for your accounting software. So that's part of the implementation to map out the chart of accounts and just make sure you don't have to do any kind of manual manual journal entries. These three have the same rate. So 41.50 a month, each annualized out to 4.98. These two have their own small setup fee here. These are for us to set up with the benefit provider as well as the, workers' comp providers sort of that feed to send them the information that they need. So, again, most of what we're doing up here is gonna be on that scope of services. This is all your tax reporting, your health care reporting, your CPP reporting, and things of that nature. And then these would be some of those optional services that we do for clients who have workers' comp obligations and RRSP plans, etcetera. So I'll send that over as well as that scope of services for the background. Any questions on anything that I just went over, feedback, anything?

00:33:13 - [LISA_LAW]
No. I just I guess I just wanna make sure that I'm understanding correctly. So this is the cost for the Canadian payroll. That's added on top of what Josh communicated as far as, like, the the platform itself regarding, you know, the time and PTO keeping and the the HCM. Is that correct, Josh? Am I

00:33:34 - [SCOTT_WARNER]
making sure

00:33:35 - [LISA_LAW]
I'm tracking correctly? Okay.

00:33:37 - [ANDREW_PORTER]
Yep. This is this is just for the Canadian payroll side of it with a with a key, you know, reiteration. This also includes having a dedicated certified payroll professional in Canada to support your team. So it's a very one to one service model. You know, international payrolls are are are complex, so we wanna make sure you have somebody dedicated to work with you as well as access to our consulting group. So if you have a question about some sort of legal compliance or, you know, somebody from The US needs to move to Canada and need some help with the legalities of that, you have access to those types of professionals here as well. So technology plus people to support sort of all wrapped into one cost for you.

00:34:23 - [LISA_LAW]
Great.

00:34:24 - [SCOTT_WARNER]
Two questions, Andrew. So I see RRSP, but do you guys also manage the Canadian taxes portion just like The US piece does. Right?

00:34:32 - [JOSH_FORD]
Yeah.

00:34:32 - [SCOTT_WARNER]
Mhmm. And then with with Blue Marble, is this like would it be an agreement between us and them, or is the agreement between Paylocity and Blue like, just from a legal side, I'm just curious how who are the agreements with?

00:34:47 - [ANDREW_PORTER]
Yeah. Great question. In about a couple months from now, I might have a different answer. Our international arm of Paylocity is still managed under the Blue Marble legal entity.

00:35:01 - [SCOTT_WARNER]
Okay. So

00:35:01 - [ANDREW_PORTER]
So I will send you a services agreement. They're largely the same, but one will say Blue Marble Global Payroll, One will say Paylocity. We have to account for all kinds of different things with data privacy laws and things that we bake into that. So it's hard to kinda just mesh them together. But, yeah, you'll you'll get, ultimately, to accompany this proposal, a services agreement for the international blue marble side, and then a data protection addendum that goes along with that to kinda lay out all the data privacy protocols.

00:35:34 - [SCOTT_WARNER]
Okay. And just to make sure I heard it right, so if Kate's having an issue with payroll, she might have to call one number for US and one number for Canada, which kinda makes sense. I don't think that's a problem. I just wanna make sure I heard that right.

00:35:45 - [ANDREW_PORTER]
Yeah. So it's really up to depending on the issue. If you have, like, a small thing like, hey. I just need an answer in a couple days, you could have a Paylocity account manager kinda go track that down for you. But if it has anything to do with payroll that's about to be processed or, you know, something that you need an urgent answer on, you will have a dedicated person in Canada to go right to. They're just gonna usually go ask them anyway, so we don't wanna create a delay with that.

00:36:11 - [SCOTT_WARNER]
Yeah. That's fair.

00:36:13 - [JOSH_FORD]
Hey, Scott. Just a shame on my my my end and on Mike's end. So the relationship with Blue Marble, we so they were a sister company of ours back in I don't know the exact dates of when we acquired them. So we used them as our go global pay payroll partner. At that point, it was, like, two systems. So when we acquired them so ours our founder founded Paylocity then decided, hey. I'm a serial entrepreneur. I'm off the board doing my own thing. Now I'm gonna go do this global thing. Right?

00:36:45 - [SCOTT_WARNER]
Yeah.

00:36:46 - [JOSH_FORD]
So and then about what Andrew, throw the dates out there when we actually acquired and basically absorbed and made sure that that whole group is now Paylocity employees, and now we're embedding that into the platform right now at this point, and it's still through that, I guess, I don't know, legality acquisition phase per se. But

00:37:04 - [SCOTT_WARNER]
You did you actually did company. You did cover it in the first meeting. I I knew that

00:37:08 - [JOSH_FORD]
they had

00:37:08 - [SCOTT_WARNER]
tied together. So I I was just trying to make sure from a agreement standpoint that we had all our bases covered there. So

00:37:14 - [JOSH_FORD]
Gotcha. Gotcha. My bad. I just I wanna make sure that we we

00:37:17 - [SCOTT_WARNER]
You did you did cover it. You did well. So

00:37:18 - [JOSH_FORD]
Alright. Alright. Well, was like, gosh. Dang it.

00:37:21 - [ANDREW_PORTER]
It it it's a good point to to reiterate that we do cover a lot, especially with, like, looking at the market today where every company who's in the HCM business is making an acquisition for some sort of global payroll option. We you know, essentially, same developers created everything to do with our international offering.

00:37:43 - [SCOTT_WARNER]
Okay.

00:37:43 - [ANDREW_PORTER]
So there's there's, you know, no trying to bolt on a product that was built totally independently. So we kinda tout that a little bit. It's helped us to kinda stay ahead of the curve in the global space.

00:37:53 - [SCOTT_WARNER]
And I know we saw the demo, but I'm not an HCM professional at all. So did the two systems look and feel the same for the most part? I can't remember, honestly.

00:38:03 - [ANDREW_PORTER]
So what we did four years ago when when the acquisition happened is we actually did away with the two system approach.

00:38:09 - [SCOTT_WARNER]
Okay.

00:38:10 - [ANDREW_PORTER]
So they used to be connected via API, and you would log in to one. It was actually single sign on as well, but you had two platforms. When we when we had the merger, essentially, we pulled everything from the Blue Marble side of the house within Paylocity.

00:38:24 - [JOSH_FORD]
Okay. Okay.

00:38:25 - [ANDREW_PORTER]
So there is no, you know, going to the multiple systems. What we actually did was build a tool within Paylocity

00:38:31 - [SCOTT_WARNER]
Okay.

00:38:32 - [ANDREW_PORTER]
To handle, you know, all of the international payroll aspects.

00:38:35 - [SCOTT_WARNER]
I thought I remembered it looked the same. I just couldn't remember for sure. So okay.

00:38:38 - [ANDREW_PORTER]
Yeah. Yeah. You you have one system now, which is good.

00:38:41 - [LISA_LAW]
Yeah. I just had kinda have that drop down that it said, like, run payroll, and then there's a second one that said run international payroll. Okay. So from Kate's standpoint, it'll be very smooth and seamless for her.

00:38:52 - [SCOTT_WARNER]
I just know that's currently a big frustration is, like, trying to manage two different systems at two different options and two different looks and feels and yeah. So

00:39:01 - [ANDREW_PORTER]
Yep. And that that goes as well, like, again, planning for the future, make an acquisition in Mexico or, you know, something like that. It's the same process for any international payrolls as well, so you can kinda scale that way. Okay.

00:39:17 - [JOSH_FORD]
Alright. Well, that's all we have. Are there any other questions or whatnot?

00:39:24 - [SCOTT_WARNER]
Any concerns with you guys with timelines at all that you've thought about and wanna address or anything like that, or you still think the timeline Lisa's discussed works for you guys?

00:39:35 - [JOSH_FORD]
I think yeah. I mean, you still at the end of the day, if you made a decision by the end of the month, but then we didn't really start we don't really have to start implementation till five four.

00:39:47 - [SCOTT_WARNER]
K.

00:39:48 - [JOSH_FORD]
That gives you eight to ten weeks. I think it's a ten week. I think I have that as a ten week process. Right? That's when we would kick it off. That's plenty of time for what we're doing. Andrew, on your side so just to throw this out there too, like, there'll be two set like, you'll have a Canadian implementation for the payroll, and then you'll have the domestic side. The domestic side will set everything else up. There's just one person. I don't know if it's one person, so sorry if I'm overstepping my boundary, Andrew. But there's there's one group that's just gonna do the Canadian aspect versus so there could be simultaneously, but, yeah, I don't see a problem with it. And, obviously, the sooner we go, better, more more runway. But where we're at today, I think you're good based off what I'm looking at.

00:40:33 - [SCOTT_WARNER]
And I wanna work closely with the teams as far as making sure legal entities are are named appropriately and stuff. We we often get invalid names inside our HCMs somehow. I don't know if it's because of year over year import or something, but we'll work with you guys as we go through that. So

00:40:49 - [JOSH_FORD]
Yeah. And it might be taking as long so the nine forty ones and all that, like so, basically, all the legal documentation is if we get if it's from that, obviously, it shouldn't be a problem.

00:41:01 - [SCOTT_WARNER]
But That'll be right. It's the usually, it's the

00:41:04 - [JOSH_FORD]
It's just the setup aspect.

00:41:05 - [SCOTT_WARNER]
Like, whoever goes in and names it or whatever. Yeah. So at least I'll work with you. Maybe it's on import or something. I don't know. But, like, right now, there's a common one of our company names that absolutely drives me crazy. So because I have to remove it on every export I can pull. So

00:41:18 - [JOSH_FORD]
Yeah. So we'll we'll get that for sure. I mean, it we'll so before we even put data in, when we extract it, we can talk about this later too on the implementation service call, presale call, or whatnot. But, literally, we go in and extract the data, then we have you review the data.

00:41:33 - [SCOTT_WARNER]
Yeah.

00:41:33 - [JOSH_FORD]
So if there's any changes that doesn't that doesn't need to happen and depending on where that's at, some stuff's hard coded, but I would doubt that that the name is hard coded.

00:41:43 - [SCOTT_WARNER]
Yeah. Yeah. My background, you know, public education, we used to do student student information system transfers almost as often as I've done HR system transfers. So data extraction stuff I'm familiar with.

00:41:55 - [JOSH_FORD]
So Sweet.

00:41:56 - [MIKE_MECKLENBURG]
Hopefully, this will be your last one, Scott.

00:41:59 - [SCOTT_WARNER]
Lisa had promised me that we won't she won't do this to me every year. So I I

00:42:04 - [LISA_LAW]
definitely not every year. I'm hoping that, you know, we're we're establishing a long term partner here, and we're not gonna be doing this for a very long time.

00:42:12 - [JOSH_FORD]
Yes. Absolutely. We just gotta keep the HR keep the HR ladies around longer, Scott.

00:42:18 - [SCOTT_WARNER]
I trust me. I'm down. I'd I I'm tired of, like, not having a good partner over there. So Lisa's promised she's gonna be that good partner, and we we got a thing worked out. So

00:42:26 - [LISA_LAW]
Yeah. Perfect. I'm not going anywhere. You're stuck with me for forever.

00:42:29 - [SCOTT_WARNER]
We're gonna retire to you know, at the same time just to make it easy, which I think we said next year, right, is what

00:42:33 - [JOSH_FORD]
we're going for. But Hey.

00:42:35 - [LISA_LAW]
I'm I'm down for that, Scott. I mean, our our our life path I mean, our kids are about the same age. Yeah. You know? It sounds great to me.

00:42:44 - [MIKE_MECKLENBURG]
And we all buy a

00:42:44 - [ANDREW_PORTER]
lot of tickets last limitation.

00:42:46 - [SCOTT_WARNER]
Yeah. Unfortunately, Mike, I never buy lottery tickets, so I can't figure out why I'm not winning. It's weird.

00:42:55 - [MIKE_MECKLENBURG]
Can't win if you don't play. Right?

00:42:56 - [SCOTT_WARNER]
Yeah. Right?

00:42:58 - [JOSH_FORD]
One last question before we get off there. I mean, aside from, like, everything, like, pricing alone, do you feel Paylocity could could set suffice the the long term partnership, Scott? Lisa? I know Lisa kinda she's got some experience. But

00:43:12 - [SCOTT_WARNER]
Yeah. So transparently, I've asked Lisa that very question and just because I I know she has some experience with it. And and, yes, I I do believe, the Paylocity, it's one of the comments I made to Lisa is I really liked the way your system was designed and and the the way the workflow worked and and things like that. So, my only concern was, you know, the scaling piece, but you you addressed that today, and I I feel confident. I mean, it's hard to say we use our own product, and we're much bigger than you guys employee count wise. So, you know, to me, that kinda settles the score right there. Right? So Yeah.

00:43:44 - [JOSH_FORD]
Well, appreciate that and appreciate the feedback. So if there's anything that comes up, feel free. I know some competitors can play dirty. So if there's something that they try to throw out there, just let me know. I'll candidly tell you what's real and what's not. So, yeah, keep us keep us in the loop, and I will send everything over after this. And, yeah, looking forward to the next step. Do you wanna go ahead and set that up now, Lisa, on a date for that next week? Or how do you the implementation service call, or does that or you wanna just hold off until after you see the demo?

00:44:20 - [LISA_LAW]
If if you're good, if we could just hold off Yeah. Josh. I'm I'm trying to also be mindful. I I have monopolized a lot of my stakeholders here for the, the last couple of weeks through multiple different calls and and all the things. So I might allow folks to have a little bit of breathing room. I know spring breaks happening for, you know, this week and and probably into next week. So if you'd allow allow us just a little bit of time, I'll I'll shoot you back a message when when we're ready to kind of go to the next steps here.

00:44:53 - [JOSH_FORD]
For sure. No. Absolutely. I'm not gonna you know me, I'm not gonna push you into the direction that I need to be pushed into. So Okay. Let let me know. And then, like I said, we'll I'll we'll send over all these documents. Andrew, if you can just send them to me, I'll send it in one email, we'll be good to go. And, looking forward to continuing the conversation.

00:45:12 - [LISA_LAW]
Sounds great, Josh. Thank you.

00:45:14 - [SCOTT_WARNER]
Appreciate you guys.

00:45:15 - [JOSH_FORD]
Yeah. Yeah. Thank you. Thanks, Scott.

00:45:17 - [MIKE_MECKLENBURG]
Happy St. Patrick's Day.

00:45:19 - [SCOTT_WARNER]
Same to you guys. Alright. Take care. Bye. See you.