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The first question presented was whether local government could use a 3rd party provider, such as ADP or PayChex to do their payroll processing. Our answer was that this payroll processing function would be considered a professional service and there is nothing in law that would prohibit local governments from using this professional service. The second question presented was whether by using a payroll processing agent the local government would violate any fiscal agent statutes. Our response was that we could see nothing in the law that would prohibit using a payroll processing agent and nothing in the law that said the use of a payroll processing agent was volitive of the fiscal agent statutes. We did, however, discuss that the contract with the payroll agent should ensure that the payroll agent was bonded and reputable in the event that there was a problem in the electronic transfer of monies.
Louisiana Legislative Auditor website: 06/28/2025 10:54:32 PM
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