CCN Regional Meeting

Agenda

• Introduction and welcome

• Business update

• Service update

• Product update

• Break

• “Customer experience”

• Questions and answers

• Networking and refreshments

Business update

New ownership• Ceridian is now a private company predominately owned by

2 large private investors; Thomas H Lee Partners and Fidelity National Financial

• Deal was announced and closed on Nov 9th 2007• Company was sold at $36 per share, valuing the company

at around $5.3 billion• New owners buy into the corporate management and

strategy, with a 5 year strategic plan in place to grow the organisation

• Significant growth and efficiency gains anticipated, with UK, MNS and Ireland set to be at the front of those gains

• Better integration across the business units, with the customer placed at the heart of everything we do

Ceridian global values

Customer Driven

Performance Excellence

High Performing

People

Honesty & Integrity

PURPOSE“A business services company that grows

by helping our customers maximize

the power of their people, lower their

costs, and focus on what they do best."

5 Global goals

• Customer Loyalty

• Growth

• Culture

• Financial

• Compliance

Customer programmes

2007• 7 of top 10 contracts renewed

in last 18 months• RBS EAP now global• Restored service levels after

isolated print issues• Adoption of Net Promoter

Score evaluation • Right Now database and

service being developed

2008• Telephony systems to be re-deployed

across all client facing teams• More focus on customer feedback• CSC / Incident logging to be established

for all customer teams and services• NPS feedback embedded into product

and service teams• New service delivery models to be

adopted in 2008• Adoption of a company wide customer

excellence programme

Highlights from 2007

Not only did we win the Pay Awards Outsourcing Provider of the Year for the second consecutive time, Brian Gibson a payroll

executive in our Glasgow office won Payroll Bureau and Outsourcing Employee of the Year too.

Service update Begin >>

Agenda

• Print quality and delivery

• Net Promoter Score

• P35

• Data Security

• Telephony

• Client Support Centre

• Customer Support Services

Print Quality and Delivery • Background

• Early 2007 Ceridian print site moved • Some customers affected by poor print quality• Knock on effect on delivery - increased number of

customer complaints• Update

• Much improved but still not where we want service levels to be

• Centralised issue management and detailed RCA• Working hard with our suppliers to drive improvements

10 9 78 6 45 2 13

Extremely Likely

Not at all Likely

Promoter Passive Detractor

Ultimate Question “How likely is it that you would recommend Ceridian to a friend or colleague”

Net Promoter Score

NPS Promoter Score

• March 2007 (-28)

• Pilot project to prove execution model (100 customers Glasgow and Manchester)

• December 2007 (- 5)

• Follow up call with respondents

• Learning incorporated into future surveys

Ceridian P35 Online Filing Service• The HMRC require all P35 Employers declaration for 2007/8 to be returned by 19 May 2008 and all

PAYE tax references with 50 or more employees must file a P35 return electronically.

• Ceridian provide assistance to over 2,500 employers and have frozen the price for this service for the last 2 years

• Significant improvements have been made to the Ceridian P35 Online Filing Service offering for this year.

• All Offer collateral, P35 packs and Supporting information (external website and TYE booklet) have been re-designed in line with Customer feedback and will be made available well in advance of Tax Year End processing.

• Emails/Letters will be sent at each stage of the process to keep customers updated on the progress of their P35 Online Filing (confirmation of receipt of application, Confirmation on receipt of completed P35 pack, confirmation when we have keyed and filed the figures online to the HMRC).

• All filing and support will be managed by local payroll contacts.

• The P35 offer deadline for all existing customers is 31st January 2008. All customers should have been contacted by email or letter regarding this offer and all applications received should have been confirmed (10 day turn around on customers who have not supplied an email address).

Data Security

• We recommend all files with personal data should be password protected – you may have already been contacted

• Currently assessing best solution to maximise security of data

• Needs to be non prohibitive for customers

• We will shortly be communicating our proposals

Telephony

• Feb 08 – Launch skill based routing for Bureau customers

• Calls routed to most appropriate colleagues• Call options• Reduced waiting time and abandoned call rates• Detailed MI being used to monitor• Switch to 0844 numbers (cheaper for customers)• Recording calls for training and monitoring • Hold music changed

Customer Support CentreKnowledge BaseSave time and money and visit our Customer Support Centre CSC within the HRE portal, granting you

access to our frequently asked questions and product specific information. This is a secure way to obtain

Information at the touch of your finger tips. Our knowledge base is self learning and will continue to

grow as more of our customers visit us online.

Key Word SearchTo make things easier you can search for information by using the key word search functionality. We

continuously monitor all key words that are searched to ensure that content is available to assist with

your enquiry.

Log An IncidentIn the event you cannot find what you are looking for then you can log an incident with one of our

experts. Not only will we respond to you but we will guarantee that the information is added to our online

content for future reference.

Customer Support Services

• Aim to simplify Account Management for customers

• New Team will be introduced during Feb• Centralised Escalation Desk• Customer Case Managers – targeted on quick

and effective resolution to customer issues• Not account management• Using MI to provide detail for focus areas

Product update

Product update - agenda

New FeaturesNew FacilitiesFuture Change:• April 2008• April 2009PayPoint future!CPS 1 / HRe 5

Ceridian Payroll New Facilities

New optional Pay Statement security feature:• National Insurance Number

AB123456C will be shown as *****456CNINO missing shown as spaces‘PENSIONER’ or ‘NONE’ shown in full

• Bank Sort Code112233 will be shown as ****33

• Bank Account Number012345678 will be shown as *****5678

• Building Society reference AB123456-JAS will be shown as ********-JAS

If needed then contact support desk

Ceridian Payroll New Facilities -Reminders

Ceridian Electronic Exchange

CSV Input data reports

Ceridian On-line Reporting (COR)

On-line Payroll Documents (OPD)

Updates – April 2008

Summary of items:• Maternity Rights – Non-cash benefits• Basic Rate Tax Change• CSL changes (no more 42 days waiting)• Carter 2 validations (DOB & Gender)• Electronic Exchange• P46 requirements• Ceridian Payroll Future

• April 2008• April 2009• PayPoint!• CPS 1 / HRe 5 Payroll

Change in Maternity Rights For EWC 6th April 2008 onwards Employee is entitled to all non-cash

benefits for full duration of maternity leave (OML & AML = 52 weeks):• Company Car• Mobile Phone• Computer• Child Care Vouchers• Bicycle?• Etc

Salary Sacrifice implications:• Illegal to sacrifice SMP only earnings or occupational• Employer required to continue non-cash benefits

Pension entitlement (employer contributions - including Sal Sac) to continue for all paid maternity (39 weeks)

Basic Rate Tax reduction10% Income tax band removed (now zero)22% Basic Rate reduced to 20%The impacts:• Charitable Giving & Gift Aid• Possible impact on Personal Pension deduction amountsPension implication• Some PP schemes reduce the deduction amount by the equivalent of

Basic Rate i.e. £78 for a gross £100 contribution• From April 2008 this will no longer be correct• If your payroll stipulates this reduction, check and ensure that the

new 20% BR is incorporated i.e. £80 for a gross of £100 contribution• If you use Ceridian automated options then OK – But if you stipulate

the amount or use a 78% value, then you need to change• Notify Ceridian of any change you require to your stated values• Ensure your scheme rules reflect the change

P46 Starter (April 2008)

Employers who are not provided with a P45 for a starter are obliged to issue and obtain a signed P46

Use the correct tax code!!!:• Declaration A then use emergency Cumulative• Declaration B then use emergency Week 1 / Month 1• Declaration C then use BR Cumulative

Never use BR Week 1 / Month 1 for a P46 starter (ever)No other tax codes are allowed for P46 starter casesEmployers must complete for first paymentNow will have DOB and Gender

New Non-taxable identifiers (NI-L, NI-S)CPS 1 / CPS 2 / HRe 5

Birth-date & Gender (April 2008)

New requirement to include and report an employees birth-date and Gender for in-year HMRC forms

Birth-date of “01011901” should not be entered if not genuine?

HR processes and system will need to ensure correct data capture

Carter 2 - In-Year electronic filing (Deadline April 2009)

Ceridian Electronic Exchange

Available on: • CPS 1 • CPS 2 (Source Payroll)• HRevolution 5• Legacy PayPoint

Inclusive in Ceridian Electronic Exchange:• P9, P6B, P6 Tax Code updates• CSL (Collection of Student Loans)• Pension messages: P46(PEN) / PENNOT

The important message

Ceridian Electronic Exchange is

“In-Year Ready”

Over 2,500 current users

It does have an associated additional charge

You can take advantage of the benefit now – you don’t need to wait until 2009

Ceridian Payroll Future – April 2008

Flexible Payroll processing • Ready to run • Part trials (CPS 1 / CPS 2 / HRe 5)And further plans for the future

Off-schedule payments

and disbursements

are also offered within

CPS 1/ HRe 5

Ceridian Payroll Change – April 2008

Missing Tax Code – Will now use BR Cumulative

New Annotation “NI” entered in tax code field T000 (but not PayPoint):• “NI-L” for employee whose normal earnings are under the Lower

Earnings Limit• “NI-S” for students working during their holiday period who have

completed the relevant form P38s.

Students P38s cases can still use Tax Code T000NT & Tax Basis T010S if desired

NI-L will not send a P46 to HMRC unless earnings exceed LEL (then tax code changed to emergency)

NI-S will not send a P46 to HMRC unless earnings exceed the Annual Threshold (then tax code change to 0T basis W1/M1)

Ceridian Payroll – additional checks – April 2008

New automated warnings will be issued in the last pay period run for the following:

• CA2700 certificate use – NICs J, L, S• NICs letter X cases (does this still apply re inbound ex-pats)• Annotation NI (NI-L & NI-S & NT basis S) use into new tax year – Are

they still valid / new certificate may be required?

The Future – April 2009

NICs new Upper Accrual Point (UAP) – to be used to protect State 2nd Pension Liabilities

Consequently: Retirement of PayPoint & Microlink as they cannot handle UAP

Compulsory In-Year filing P45 & P46

The PayPoint conundrum!PayPoint compliance is only ensured until March 2009 but:• No enhanced Ceridian Payroll facilities – the following are not

present:• Cannot handle Upper Earnings Accrual Point for new NICs calcs

• SMP Alabaster features – manual handling only

• SMP 39 week manual control not possible –manual workaround

• SMP period based payments not possible (and other parental payments)

• New AEO for magistrate fines (April 2007) – manual workaround

• Flexible processing capabilties –part trials, priority processing

• Off-schedule or one off BACS payments – late starters / early leavers

• Fast speed but secure internet transmission

• Local printing capabilities: Payslip, P45, P60 copy

• New Non-tax identifiers : “NI-L”; “NI-S”

• Some technology retirement due• Solution – Convert asap

CPS 1 / HRevolution Apr 2008

All the features of PayPoint plus more:• Off-schedule Payroll Adjustment Calculations• Enhanced Security:

• Credit Amendments• BACS payments

• Disbursement expansion• Account creation• Security• Rule based values

• Flexible trial capabilities

Break

Customer experience

Over to you!

If you had £5 million to spend on Ceridian UK, where would you spend it?

New payroll products

Additional HR services

Web-enabled technologies

Customer service training

Improving query handling technology

Additional payroll services

More customer training

Improved account management

Over to you!• What are going to be your biggest

challenges in 2008?

• Where can Ceridian improve its service to you and your organisation?

• If we could make one difference in 2008 in how we work with you, what would it be?

• Where and how is Ceridian helping you now?

• The CCN is your voice

Questions & answers

•Roger Bright,

Customer Development Manager•Ian Brennan,

Product Manager - Payroll

If you have a question you think of after this meeting, please contact us at

ccninfo@ceridian.com

or call your support desk

Networking & Refreshments