Processing Payroll

HRMS User Forum #1

HRMS End-to-End Processing

January 30, 2009

Shahzad Asghar Arain Pakdata.net 92-334-9564004

HRMS End-to-End Processing

Determining a Payroll Processing Cycle Working back from mandated paydate . . . Pre-Day 1 Data Input

Day 4

Day 1

Day 2

Day 3

Data Input Corrections

Data Input Corrections

Final Agency Corrections

Statewide Payroll Simulation

Statewide Payroll Simulation

Begin Payroll Processing

State Paydates Paydates are determined through a legislative mandate. Generally the 10th and 25th of each month.

ACH and Warrants Generated

Warrants Mailed to Employees

Warrants Mailed to Agencies

Warrants must be mailed two US Postal working days prior to payday (includes Saturdays).

Warrants distributed to agencies 1 day prior to mailing to employees. 2

HRMS End-to-End Processing

Payroll Processing Activities Pre-Day 1 and Day1 Pre-Day 1

• Agencies enter as many personnel, payroll and time entry actions as possible

Day 1 Processes

• Agencies continue to enter personnel, payroll and time entry actions

Timeframe

• Leave and Time collection (GAP 1s) from agency shadow systems can be processed until 6 pm, payroll processing follows until 2-4 am

• HRMS staff assist agencies in correcting errors and resolve Tier 2 incidents

3

HRMS End-to-End Processing

Payroll Processing Activities Days 2 and 3 Day 2 Processes

• Agencies continue to enter personnel, payroll and time entry actions and correct errors from the night before • HRMS staff assist agencies in correcting errors and resolve Tier 2 incidents

Timeframe • Leave and Time collection (GAP 1s) from agency shadow systems can be processed until 6 pm, payroll processing follows until 2-4 am

Day 3 Processes

Timeframe

• Agencies correct errors from the night before • HRMS staff assist agencies in correcting errors and resolving Tier 2 incidents • Final payroll is run – redlines created and employees locked out for any payroll or financial errors • Payroll processing begins at 6 pm and completes between 2 and 4 am 4

HRMS End-to-End Processing

Payroll Processing Activities Day 4 Day 4 Processes

Timeframe

Agencies are locked out of HRMS to protect data while DOP runs the following processes: • Warrants, Direct Deposits and the Earnings and Deductions Statements are produced • 3rd party (vendor) payments are produced • Retirement processing occurs • Financial processing occurs • Balancing process is run to ensure financials and payments reconcile • Interfaces are produced for OFM and the State Treasurer • Agencies are notified of final redlines or employee lockouts, requiring manual warrant preparation Payroll processing begins at 5 am and completes approximately 12-14 hrs. later, usually by 7 pm. Processing the final payroll requires key jobs to be run consecutively, not simultaneously, due to record contention. 5

HRMS End-to-End Processing

DOP’s Approach to Payroll Processing HRMS is a single, integrated system . . . 

Facilitate HR and Payroll coordination and communication.



Understand the end-to-end nature of business processes.



Evaluate internal timelines.



Understand that HRMS is more than a payroll system.



Evaluate long-term opportunities of process, organization, and position changes.



Understand key roles for management, HR, payroll, and employees.

6

HRMS End-to-End Processing

Management Responsibilities 

Be aware of the role you play in HR and Payroll processing.



Communicate information in a timely matter.



Encourage and support the creation of more efficient processes and procedures.

7

HRMS End-to-End Processing

Human Resources Office 

Take a proactive approach to consultation and services. –



Seek ways to ensure that HR is at the table. Move from a transactional role to a business partner. – –



Engage with supervisors and employees through active communications and ongoing dialogue.

HR management report creates an entry point into a division. Help managers understand value of HR trends reports.

Partner with payroll and learn about each other’s roles. 8

HRMS End-to-End Processing

Payroll Office 

Communicate expectations for receiving payroll information to all levels of the agency. –



Get management support for workable deadlines.

Develop procedures that incorporate new schedule. – –

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(Slide 1 of 2)

If cut-off still too stringent, identify needs, analyze requirements and seek alternate solutions. Use effective dating to mitigate workflow issues.

Revisit business processes to ensure they meet needs and take advantage of HRMS. –

Ensure processes cover delegation of approval. 9

HRMS End-to-End Processing

Payroll Office 

(slide 2)

Take time to learn how different actions affect one another. – – –

HR transactions, leave entries, and schedule changes affects payroll processing. Develop procedures that minimize the affects of these actions. Understand cause and effect and communicate appropriately.



HRMS is built using an application (SAP) that is the industry standard for large enterprises. Skills you learn using HRMS are transferable.



Make sure staff have appropriate training – processing in HRMS requires more analysis.

10

HRMS End-to-End Processing

Employees 

Report absences, work schedule changes and other personal changes in a timely manner.

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Must know the call-in procedure for unplanned absences.

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Begin using Employee Self Service and E-Recruiting.

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Ensure that new employees receive appropriate HRMS information and training.

11

HRMS End-to-End Processing

Actions and Responsibilities Manager

Human Resources

Payroll

• Approve/Submit Leave Requests (to Payroll)

• Communicates deadline for HR changes to managers (10th/25th)

• Data entry

• Complete PA40 form

• Run Pay Sims

• Collects and enters relevant data

• Create appropriate reports

• Runs Actions Report

• Analyze outputs

• Approve/Submit timesheets for hourly employees (to Payroll) • Approve/Submit overtime (to Payroll) • Report HR changes (to HR) • Report Work Schedule Changes (to HR)

• Time entry

• Completes Internal Tracking Log • Sends Actions Report and Tracking Log to Payroll

12

HRMS End-to-End Processing

DOP’s Payroll Data Entry Schedule S

M 1

7 14

T

W 4

Payroll 5 HRMS redlines/ Lockdown exceptions

S

3 Payroll

8 HR &

9 HR &

10 HR & 11 HR & 12 HR & 13

Payroll

Payroll

Payroll

15

16 Payroll 17 Payroll 18 Payroll 19 HRMS 20

Payroll

6

Payroll

redlines/ Lockdown exceptions

22 HR & 23 HR & 24 HR & 25 HR & 26 HR & 27 Payroll

28

F

2 Payroll

Holiday

Holiday

21

T

Payroll

Payroll

29 HR & 30 HR & 31 Payroll Payroll

Payroll

Payroll

Payroll

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