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Payroll Forum SBIP Update
May 11, 2005
2
Statewide Business Infrastructure Program (SBIP)
Legend: Current ProjectPast Projects Upcoming Projects
Past Projects Current Project Upcoming Projects Future Projects
Financial & HR Business Infrastructure Study Phase 1
Inventoried present systems and provided assessment of technical and functional capabilities
Financial & HR Business Infrastructure Study Phase 2
Provided a blueprint for viable implementation options and a recommended course of action
HR/Payroll Planning Project
•Identify process re-engineering and structure
• Develop integration strategy and risk analysis
• Develop business requirements
HR/Payroll Bid Preparation Project
• Develop bidding document for implementation
• Select Vendor for HR/Payroll Implementation
HR/Payroll Implementation Project
• Implementation
Statewide Business Infrastructure Project – Budget & Financials
Statewide Business Infrastructure Project – Tax & Revenue
SBIP Data Warehousing Planning Project
• Develop needs assessment
• Confirm Scope
• Develop implementation timeline and approach
• Develop business requirements
SBIP Data Warehousing Implementation Project
• Implementation
Future Projects
3
• HR/Payroll Project Update
• Payroll JAD Session Update
4
HR/Payroll Project Update
Activities Completed This Period
4/7/2005 – 4/29/2005
Completed Phase 1 of HR/Payroll Project
Completed HR 1 and 2 deliverable enhancements
Completed Payroll deliverable
Completed Technical deliverable
Completed Change Management deliverable
Drafted re-engineering and organizational strategies deliverable
Completed project executive summary/legislative update document
Drafted and approved proposal for business process improvement activities
Began preparations for business process improvement activities
Began preparations for meetings with CFOs and CIOs
5
Collect Time and Attendance – Feb 14th & 15th
Process Owner: Kathy Reitzel
Number of Participants: 14
Agencies represented:– Administrative Office of the Courts– Department of Correction– Department of Environmental and Natural Resources– Department of Health and Human Services– Department of Justice– Department of Revenue– Department of Transportation– Office of the State Controller
6
HR150 – Collect Time and Attendance
Send the Time Data to Payroll
Process the Time and
Attendance Data
Approve and Release Time/
Leave Data
Evaluate Time and Leave Data
Monitor Time/Leave Balances
Capture Exception Time and Accounting
Overrides
Update Leave Balances
Collect and Record Time,
Leave and Accounting Data
HR-100Manage Payroll
HR-100Manage Payroll
HR-100Manage Payroll
7
JAD Session HighlightsCollect Time and Attendance
Process Overview
This process includes collecting leave time, capturing exception time, approving the leave data, and monitoring time and leave balances. Time and attendance information is typically captured at the source where it originates
through a variety of tools.
Improvement Opportunities Apply leave policies consistently across agencies Transfer leave balances seamlessly across agencies as an
employee moves between affiliated state organizations Allow electronic signature approval for routing
Potential Barriers Complexity and magnitude of business rules and laws for
timekeeping Dispersed workforce will make training and support more
difficult Disparate business rules need to be standardized Perception of ownership – “This is OSC/OSP’s system, not
the agencies’”
Benefits
Ability for the state to accurately report use of leave across the state
Employees trust the accuracy of time reporting when input personally
Increased processing window for time collection and approval
Time and effort saved because managers will no longer need to verify calculations on timesheets
Increased availability of staff due to electronic delivery of timesheets
8
Manage Payroll Pre-Processing – Feb 23rd & 24th Process Owner: Phyllis Creech
Number of Participants: 47
Agencies represented:– A&T State University– Administrative Office of the Courts– Community Colleges– Comprehensive Major Medical Plan– Crime Control & Public Safety– Department of Administration– Department of Agriculture– Department of Commerce– Department of Correction– Department of Cultural Resources– Dept of Environment and Natural
Resources– Dept of Health and Human
Services– Department of Insurance– Department of Juvenile Justice– Department of Labor– Department of State Treasurer
– Department of Transportation– Elizabeth City State– Employment Security Commission– Fayetteville State University– Information Technology Services– NC School of the Arts– Office of Administrative Hearings– Office of State Budget and
Management– Office of the State Controller– Revenue Department– Secretary of State– State Auditor– UNC Ashville – Western Carolina– Wildlife Resources Commission– Winston Salem State
9
Manage Payroll Processing – March 2rd
Process Owner: Doris Martin
Number of Participants: 43
Agencies represented:– A&T State University– Administrative Office of the Courts– Community Colleges– Comprehensive Major Medical Plan– Department of Administration– Department of Agriculture– Department of Commerce– Department of Correction– Department of Cultural Resources– Dept of Environment and Natural
Resources– Dept of Health and Human
Services– Department of Insurance– Department of Juvenile Justice– Department of Labor– Department of State Treasurer
– Department of Transportation– Employment Security Commission– Information Technology Services– NC School of the Arts– Office of Administrative Hearings– Office of State Budget and
Management– Office of the State Controller– Revenue Department– School of Science and Math– Secretary of State– State Auditor– UNC Ashville – Western Carolina– Wildlife Resources Commission– Winston Salem State
10
Manage Payroll Post-Processing – March 3rd
Process Owner: Patty Norris
Number of Participants: 36
Agencies represented:– A&T State University– Community Colleges– Comprehensive Major Medical Plan– Department of Administration– Department of Agriculture– Department of Correction– Department of Cultural Resources– Dept of Environment and Natural
Resources– Dept of Health and Human
Services– Department of Insurance– Department of Juvenile Justice– Department of Labor– Department of State Treasurer
– Department of Transportation– Employment Security Commission– Fayetteville State University– Information Technology Services– NC School of the Arts– Office of Administrative Hearings– Office of State Budget and
Management– Office of the State Controller– School of Science and Math– State Auditor– UNC Ashville – Wildlife Resources Commission– Winston Salem State
11
HR100 – Manage Payroll
Add Staffing Changes and
Transfers
Collect Hourly Employee Time and Attendance
Information
Collect Benefits Related Data
Collect Other Payroll Related
Data
Collect Rewards Related Data
Collect Performance-Based Compensation Data
Collect Salaried Employee Time and Attendance
Data
Create and Maintain
Employee Master Record
Consolidate Pay Period Data
Schedule Payroll Operations
Process Benefits Information
Process Payment Data
Process Employee Data
Changes
Process Staffing Changes
Process Rewards Information
Process Absences from
Work
Calculate/Process Gross Pay Process
Process Deductions and
Premiums
Process Net Pay
Confirm Net PayIs Net Pay Correct?
Process Final Pay Cont'd.
Yes
No
HR-150Collect Time and Attendance
HR-020Plan and Manage HR Programs and Plans
H-030Manage Wage & Contribution Receipts
Update Accrued Leave Balances
12
HR100 – Manage Payroll
Coordinate Payroll with Appropriate Institutions
Post Payroll to General Ledger
Produce Pay Slips
Produce Pay (Manual/
Automated)
Process Other Deductions
Cont'd.
Research and Distribute Wage Verification Data
Receive Employee Inquiries
Communicate Results to Employee
Is it Year-End?
Perform Year-End Closing
Clear Year-End Accumulators and
Balances
No
Yes
DC-020Process Accounting Transactions
Produce Payroll and Audit Reports
DC-070Perform Closing
HR-020Plan and Manage HR Programs and Plans
H-030Manage Wage & Contribution Receipts
13
JAD Session HighlightsManage Payroll
Process OverviewThis process includes the
collection of time and attendance and accounting data; collection and calculation of gross pay, deductions, and net pay; leave balance and account maintenance; links to accounts payable, general ledger, budget, funds management; and required payroll audit reports for 941’s and W-2’s and 1042s (tax documents for treaty benefits).
Improvement Opportunities Utilize employee self service for data inquiries/changes Eliminate multiple agency employee payroll records Develop strong payroll processing policies and
procedures with electronic access Automate and monitor approval for dual employment
Potential Barriers HR and payroll need education regarding responsibilities
and deadlines to work together more effectively Sheer magnitude of the project is daunting Too many exceptions and modifications requested will
have a negative impact on implementation
Benefits Elimination of separate/duplicate HR and
Payroll systems will strengthen data integrity
Elimination of duplicate data entry will increase efficiency
Provides a seamless transition for employees transferring between agencies
Automated calculations will decrease errors and increase consistency
Standardized and streamlined processes allow for policies to be applied consistently across all agencies
An automated system provides for an
easier payroll audit
14
• Payroll Business Process Improvement
― Policy Development
― Standardize Procedures
― Quick Hits
15
Develop standardized policies for use by all agencies
Review current system procedures to create standards for all agencies
Create OSC as the focal point for payroll policies and procedures
Develop central payroll manual
Implement quick hits to accelerate benefits to agencies
Prepare for future implementation of HR/Payroll system
Maintain enhanced web site capabilities
Supports Payroll compliance
Business Process Improvement Objectives
16
High Level Project Timeline
For pre-implementation activities, HR and Payroll will be separated into two distinct streams of work.
Activities for HR process engineering will span twelve weeks and Payroll approximately seven weeks.
Project Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Month
Date 2 9 16 23 30 6 13 20 27 4 11 18 25 1 8 15 22 29
HR Business Process Improvement
Payroll Business Process Improvement
AugustJ ulyJ uneMay
Pre-Implementation Activities
17
Policies vs. Procedures
A policy is a “what” and the procedure is a “how to”
Policies are written as statements or rules
Procedures are written as instructions, in logical, numbered steps
Policy
Formal statement of a principle or rule that members of an organization must follow. Each policy addresses an issue important to the organization’s mission or operations
Procedure
Tells members of an organization how to carry out or implement a policy
18
Developing Standardized Payroll Policies
Conduct Payroll BPI Kick-off meeting
Gather documentation, memos and State statues for Payroll policies
Gather sample policies from Universities and other State agencies
Prepare materials for upcoming sessions
Review existing policy documentations
Create a list of appropriate policies with template
Prepare drafts for review
Communicate policies to CFO’s and Payroll Officers
Outline procedures for policy update and revision
Gather Data CommunicateAnalyze &
Confirm
19
Sample List of Standardized Policies
Retroactive Adjustments Calculation of Time Payroll Tax Withholding Determination of Employee vs. Contractors Garnishments, Levies, Child Support Stop Payments and Re-issuance of Payroll Checks Payroll Schedule Release of Payroll Information Terminated Employees New Hire Foreign Nationals Temporary Employees Other Pay (supplemental, awards, bonuses) Deceased Employee Final Payment Out of State Employees Direct Deposits
20
Sample List of Quick Hits
Enhance check printing Provide net pay calculation tool Publish standardized payroll calculations Create Central Payroll manual Improve web site Streamline transfer of leave balances across agencies Improve dual employment processing Develop OSC as a central focal point for payroll processing
21
Next Steps
Gather data for policies/procedures
Create draft policies/procedures
Review policies/procedures with selected representatives
Identify quick hit opportunities
Prioritize high impact quick hit opportunities
Validate quick hit opportunities with representatives
Implement quick hits and prepare for HR/Payroll implementation
John Morgan
(919) 871-6480