Achieving Payroll Best Practices Through PeopleSoft Payroll

Presented by: Praveen Gupta Manager January 17, 2007

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  Q&A

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Best Practices Defined:

A 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 worldperformance metrics
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Payroll
Process 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 Payroll The 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

Architecture

Construction

Migration

Evolution

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Achieving Payroll Best Practices Through PeopleSoft Payroll The Implementation

Architecture 1
Project Initiation

2
Executive Interviews

10

Quick Wins Development

Quick Wins Implementation

Current State Review

Best Practice Vision

Vision Validation

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation Planning Business Case Development

Ongoing Project Management/Program Office Ongoing Change Management & Communications

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Achieving Payroll Best Practices Through PeopleSoft Payroll The Implementation

Construction 1 Project Initiation 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Migration 17 18

Quick Wins Implementation Executive Presentation Education, Training, & Coaching Production Cutover Planning Production Cutover

Detailed Org. Design Conference Room Pilot Policy & Procedure Development

Application Configuration Functional Specs Technical Specs Custom Development

Data Conversion Test Planning Non-Production Environment Depl. Function Testing Integration Testing

Performance/ Stress Testing System Testing

Acceptance Testing

Production Environment Deployment

Technical Knowledge Transfer

System Optimization

Ongoing Project Management/Program Office Ongoing Change Management & Communications Milestones Process Detail Test Scripts Production Cutover (Acceptance)
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Answerthink Overview | June 30, 2003 Practices Through PeopleSoft Payroll Achieving Payroll Best

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 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

 Background

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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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able

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 Payroll

Best Practice Implementation Approach Taken

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Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Payroll Pro ing Future Propo ed Practice

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Human

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mployee uestions ?

Answerthink Overview | June 30, 2003 Practices Through PeopleSoft Payroll Achieving Payroll Best

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HR k ys n all ata c anges r r t redetermined data entry deadline *

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AP to Payroll employee expense reimbursement process

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ayr ll keys in all ayr ll data c anges (i.e. taxes and direct deposit enrollments) prior to predetermined data entry deadline

Payroll enters/makes correction to Time ntry Page

P-1

P-2
Mail ecks enter

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Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

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Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits 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 Payroll

Benefits Realization- Other Key Numbers

Payr ll s rv
250 200 150 100 50 0 Curr t Pr j t d 1 0 Curr t Pr j t d $96

st p r mpl y
$234

Payr ll s rv
4 3 2

s p rs
3.84

l p r 1000 empl yees

1.52

Est mated reduct in payr ll tax fines, penalties & interest

0% -10% -20% -30% -40% -50% Pr j t d (L w) Pr j t d (H ) -33% -50% 5 4 3 2 1 0

Cost per pay check

$4.87

$2.00

Curr

Pr j

t d

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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

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