Achieving Payroll Best Practices Through PeopleSoft Payroll

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Achieving Payroll Best Practices Through
PeopleSoft Payroll
Presented by Praveen Gupta Manager January
17, 2007

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Agenda

• Best Practices - Defined
• Best Practices - What and Why
• A synopsis of Payroll Best Practices and their
  benefits
• Achieving Payroll Best Practices through
  PeopleSoft Payroll
• The relation
• Implementation Method
• Case Study
• Conclusion
• QA

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Best Practices DefinedA Hackett-Certified
Practice is a proven technique that delivers
measurable value

• Aligns with strategy
• Reduces costs
• Improves productivity
• Promotes timely execution
• Enables better decision making
• Leverages existing and exploits emerging
  technologies
• Ensures acceptable levels of control and risk
  management
• Optimizes skills/capabilities of the organization
• Promotes collaboration across the extended
  enterprise

Hacketts Best Practices are certified when there
is a correlation with world-class performance
metrics
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PayrollProcess Definition

• The payment and handling of salaries, wages,
  deductions and tax withholdings in accordance
  with organizational policies and government
  regulations. It includes the following
  sub-processes and activities
• Time reporting, including vacation, leave and
  absence management
• Employee data maintenance Employee inquiry
  response
• Pay calculation gross to net, including
  salaries, wages, bonuses, commissions,
  allowances, deductions, third party vendor
  interface coordination, and tax withholding
• Pay distribution and deduction remittance,
  including direct deposit and check printing
  positive pay administration pay advise
  distribution and garnishment administration
• Payroll tax and payment filing, including
  preparation and submission of payroll taxes and
  related Federal and state/province tax returns
  and, year-end processing, printing, and
  distribution of employee tax forms
• Payroll accounting, including account
  reconciliation and general ledger interface
• Other regulatory and/or management reporting

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Payroll Best Practices What and Why

• Payroll processing handled in a leveraged
  environment
• Lower costs higher efficiency greater
  operational process transparency consistency
  standardization provides "Single City
  organization" view from customers across multiple
  departments
• Key payroll personnel are APA CPP certified
• Ensures that payroll resources are qualified have
  the competency requirements and skills needed in
  a payroll environment. More competency
  translates to less turnover
• Employee self-service utilized
• Reduces transaction processing by admin staff
  Reduced errors due to paper loss and keying
  error Employee ownership of data speed in
  transaction processing employee satisfaction
• Direct deposit of employee paychecks utilized
• Reduced processing and reconciliation of checks
  More secure movement of funds Reduced
  administrative time invested in payroll cycle

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Payroll Best Practices What and Why

• Retroactive changes are automatically calculated
  within the payroll system
• Reduces errors and manual calculations
• Business expenses reimbursed through payroll
• Eliminates duplicate check processing to same
  employee one on payroll side one on accounts
  payable side reduces cost. Customer
  satisfaction
• Service level agreements are established and
  monitored with business unit customers and third
  party services providers
• Ability to measure efficiency and effectiveness
  of service between business relationships
  (customer, vendor, and payroll). Clear
  understanding of scope
• Garnishments module integrated and automated with
  payments and reporting through electronic
  interface to agencies, where possible
• Reduction in number of manual checks Reduction
  in potential errors and omissions Improved
  employee relations with garnishment enforcement
  agencies Reduced reconciliation increased
  efficiency

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Payroll Best Practices What and Why

• EDI, ACH and/or other electronic means are
  utilized for payroll remittances to governments
• Source of information available to vendors and
  government agencies on an as needed basis Reduce
  cost and staffing Improve accuracy and quality
• All employee issues and resolutions are handled
  by one centralized point of contact
• Elimination of varied communications options
• Multiple levels of role-based security to allow
  controlled inquiry and update access to data,
  reporting and system controls
• Technical support cost savings eliminates errors
  and rework protects confidential information
• Strong governance over core Payroll process
  definitions, table maintenance, security, limits
  of authorities, and escalations
• Ability to measure efficiency and effectiveness.
  Clear understanding of scope.

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Achieving Payroll Best Practices Through
PeopleSoft PayrollThe Relation

• PeopleSoft architecture
• supports best practices to a very high degree
• flexible for implementations and rollout
• Delivers out-of-the-box functionality for
  Payroll
• Tightly integrated with other HR functions
• PeopleSoft architecture specifically
• Supports centralized shared services center
• Provides Self Service for Managers and Employees
• Capable of high degree of automation e.g.
  Workflow, Interfaces and EDI
• Predefined regulatory reports
• Multiple level of Security
• Central point for all payroll related data,
  processes, and reports

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Achieving Payroll Best Practices Through
PeopleSoft Payroll The Implementation
Targeting
Construction
Evolution
Architecture
Migration
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Achieving Payroll Best Practices Through
PeopleSoft Payroll The Implementation
Architecture
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Project Initiation
Executive Interviews
Quick Wins Implementation
Quick Wins Development
Solution Design
Vision Validation
Best Practice Vision
Current State Review
Requirements and Fit/Gap Analysis
Technology Architecture Planning
Implementation Planning
Business Case Development
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Achieving Payroll Best Practices Through
PeopleSoft Payroll The Implementation
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Achieving Payroll Best Practices Through
PeopleSoft Payroll Case Study

• The Industry
• Printing and Publishing Industry
• 27 business units in 11 States
• Each business unit represents one publication
• Every publication has its own HR and Payroll dept
• A total of 9,000 employees
• Background
• Each publication had their own different
  technology and sets of pay rules
• Each publication had their own different methods
  and ways of payment
• Little or no automation
• Opened a support center with common technology,
  PeopleSoft HRMS and Financials to replace legacy
  systems at all newspapers

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Achieving Payroll Best Practices Through
PeopleSoft Payroll Case Study

• The Rollout
• PeopleSoft Implementation was done as a
  de-centralized system
• Support Center had the responsibility of
  maintaining setup and control tables
• Additionally support center was responsible for
  mass data changes
• Business Units were responsible for maintaining
  their own employees data
• For Payroll, Support Center was responsible for
• Running Time Admn and creating initial pay sheets
• Help and support BU to correct errors if any, or
  guide newspapers to the point of final calc
• Confirm Pay
• Run GL interface, ACH and Pos Pay files
• For Payroll BU was responsible for
• Ensuring accuracy of pay sheets and pay lines
• Run audits and correct errors
• Print and distribute checks and DDA

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Achieving Payroll Best Practices Through
PeopleSoft Payroll Current Process
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Achieving Payroll Best Practices Through
PeopleSoft Payroll Current Process
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Achieving Payroll Best Practices Through
PeopleSoft Payroll Current Process
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Achieving Payroll Best Practices Through
PeopleSoft Payroll Current Process Pain Points

• Multiple handoffs between business units and
  support center
• Dependencies upon email and / or phone
  confirmations adds to overall processing time
• No defined process ownership
• Reactive management vs. proactive management
• Handoffs between Benefits and Payroll adds to
  complexity
• Lack of standard policies and procedures
• Entering time directly into pay sheets to address
  time reporting errors resulting in an
  additional manual process of verification
• Training on the philosophy and processes
  associated with payroll and payroll system
• AP and Cash Management receives multiple requests
  for remittances at different times from different
  papers
• General lack of effective communication

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Achieving Payroll Best Practices Through
PeopleSoft PayrollBest Practice Implementation
Approach Taken
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Achieving Payroll Best Practices Through
PeopleSoft PayrollBest Practice Payroll Process
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Achieving Payroll Best Practices Through
PeopleSoft PayrollBest Practice Payroll Process
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Achieving Payroll Best Practices Through
PeopleSoft PayrollBenefits Realization

• Annual Projected Savings
• 2.1 Million
• Projected Improvement in Efficiency and
  Effectiveness
• 71 drop in number of tickets

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Achieving Payroll Best Practices Through
PeopleSoft PayrollBenefits Realization- Other
Key Numbers
Payroll services cost per employee
Payroll services personnel per 1000 employees
Estimated reduction in payroll tax fines,
penalties interest
Cost per pay check
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Conclusion

• Technology is a great enabler but the right
  implementation makes the difference
• With best practice approach, defined goals can be
  measured and achieved
• A set of standard processes goes a long way
  towards organization efficiency

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Questions