OPM poised to launch e-payroll

OPM's e-government site

The Office of Personnel Management is expected to announce this week that it has worked out the details with several federal payroll providers to develop the governmentwide e-payroll system.

The e-payroll project, which is one of President Bush's 24 e-government initiatives, aims to consolidate federal payroll providers and standardize payroll policies. Currently, 22 agencies process payroll for about 1.9 million civilian employees.

In November 2002, OPM, which is the lead agency on the e-payroll initiative, narrowed the field to four payroll providers: the Defense Finance and Accounting Service and the General Services Administration as one partnership, and the Agriculture Department's National Finance Center and the Interior Department's National Business Center as another.

These agencies are expected to move forward on the e-payroll project, however OPM would not comment until its official announcement, scheduled for Jan. 15.

Eventually, OPM officials have said, there will be two providers and two platforms—a move that would save $1 billion over 10 years.