Q & A with Claudeane Whaley, Payroll Supervisor, Pilot Travel Centers.

by Jeff Bizzack

Pilot Travel Centers LLC is the nation’s largest operator of travel centers and largest seller of over-the-road diesel fuel. It owns and operates more than 260 travel centers in 40 states coast to coast. A typical travel center includes one or more nationally recognized chain restaurants, retail merchants, fueling facilities, and a variety of other services aimed at professional drivers and interstate travelers. In this interview, Claudeane Whaley discusses the importance of building a strong value-added relationship with your outsourcing provider.

JB: When did Pilot Travel Centers begin to outsource tax filing services?

CW: In September 2001, Pilot Corporation merged with Marathon Petroleum Company and formed Pilot Travel Centers. Overnight we grew from 6,000 employees to over 10,000 employees with operations in 37 states. We knew that managing the payroll tax filing needs in so many locations would be complex, and that we should leverage the professional expertise of a specialist organization. So we started a comprehensive process to evaluate several outsourcing firms. By October 2002, we had selected a provider and began the outsourcing of our tax filing needs.

JB: Recently you changed your provider. What factors led you to this transition? 

CW: We were searching for a firm that would act more like a partner with a real commitment to customer service. A partner is someone that works hard everyday to make sure my business is running as it should. It is a firm that understands the importance of communications and is willing to provide us with a dedicated customer-service person who understands our business and what we need to accomplish on a day-to-day basis. Since the filing requirements are ever-changing, we needed a partner who would not just process our data but also advise us on compliance issues and bring us best practices and technology to make us more efficient.

JB: How did you determine whether a firm would act like a partner ?

CW: By nature, most payroll executives are very detail-oriented and implement processes that ensure a high degree of control. When you outsource tax filing, you relinquish some aspects of the operating controls that you so passionately built to ensure accuracy and compliance. It is so important to find a provider who works with you on a team-oriented basis. However, finding that kind of partner is not easy. Some firms have their salespeople handle all contract discussions and solution design recommendations. These sales teams are very professional and you begin to feel a high degree of comfort with their outsourcing services. But when you sign the contract, the sales team generally leaves, and a new group of operating people take over, and even this new team may change as you implement the outsourcing program.

Our new outsourcing provider understood our concerns. They spent a great deal of time talking to us about our needs. Their presentations were led by the team that would work with us and be responsible for our account. They emphasized the kind of service they would personally provide with each presentation. They thoroughly demonstrated their in-depth knowledge of how best to process and handle our complex tax filing needs.

JB: What was the transition process?

CW: When you transition services from one provider to another, it can be very scary. We made the decision to switch suppliers last December. So we went through the first quarter with our initial provider, and we transitioned tax filing to our new provider during the second quarter of 2006. The new provider’s team during transition was fabulous. For more than a month, we transitioned test files to our provider. We both gained a high degree of comfort that the process would work as planned when we went live. Overall, the transition process was seamless. It was a 60-day process. We started working with them on the parallels and making sure that everything was set up in their interface. Their technical team worked very well with ours. By the time we did the first payroll with them, it was balanced to the penny, and everyone cheered.

JB: What process improvements did your new outsourcing provider implement?

CW: Our provider implemented a sophisticated technical solution that generated significant process improvements. For example, we had our technology department work with our provider to build our interface in house. This was great because our technology department can maintain it. They built the capability to balance at the time of submission. Before we submit, we can see if there is any fallout.

With our previous outsourcing provider, we had to wait until our file was transmitted to them, wait for them to upload the file into their system, and make it available to us on the website. Then we had to review all the data, balance it, and release it before any tax payments were made to the various agencies. With our new outsourcing provider, we know what the fallout is before they get the file and can work together to address any issues. In addition, the new provider balances the file on their end and notifies us of any discrepancies. At the same time, we are balancing on our end.