presented by merenda tate. what this training will not cover supplemental forms details of benefit...
TRANSCRIPT
Presented by
Merenda Tate
What this training WILL NOT CoverSupplemental formsDetails of Benefit EligibilityLeave of Absence (LOA) processingVacation or personal time allocation/usageTimesheet, or paycheck-related questions
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ObjectivesBefore you leave this class, you should be
able to:Understand the process flow of the Payroll Authorization(PA)Learn the Anatomy of the Payroll Authorization(PA)Be aware of recent Form ChangesIdentify difference between Correct versus Incorrect PALearn how to fill out the PA correctly through practical examplesUnderstand the impact of Payroll Authorization(PA) to all employees
Late PAs Retro PAs
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Question 1Can you guess how many Payroll
Authorizations EIS processed last year?
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Answer:
7,920
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Process Map of a Payroll Authorization
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Payroll Authorizations(PA) Processed for 2008
1316
2301
2728
1575
0
500
1000
1500
2000
2500
3000
1stQtr
2ndQtr
3rdQtr
4thQtr
January-March
April-June
July-SeptemberOctober-December
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Anatomy of the Regular PA
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Critical Items missed on PAUnder the Employment Status Section:
1. Please mark one value from each of these groups:
a. monthly/Salaried Staff, Faculty, Research Fellow, Research Associate A/B/C, hourly/hourly staff, Non-Union Service, Union- SEIU, Union- IATSE
b. Temporary, Regular
Reason why we need this information:
We need to know both pieces about each person in
order to give them the appropriate benefits.
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Critical Items missed on PA cont’dUnder the Section 1, Personal Data:1. Please include Hours/week for all staff.Reason why we need this information:Without this information we cannot determine whether the person is benefit eligible.2. Please make sure that the Citizenship field is filled out.Reason why we need this information:This is critical for ensuring that we are complying with the appropriate tax laws.3. Please list the Date of Birth and Social Security Number.Reason why we need this information:Without this information listed EIS simply cannot enter the PA. However, the assignment #
and DartID are acceptable substitutes for SSN, with the exception of a New Hire PA.4. List the middle name or initial (if applicable).Reason why we need this information:You would be surprised at the number of duplicate names!
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Critical Items missed on PA cont’dUnder Section 2, Position/Funding/Labor Distribution:1. Please list the position number if a regular staff employee.Reason why we need this information:This helps us to ensure that we are assigning the person the correct title, grade, and department.2. Please list the natural class on the account string.Reason why we need this information:This helps us to understand what it is you are trying to do.3. Please list the Rate of Pay and/or SalaryReason why we need this information:That's an easy one!
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Critical Items on PA cont’dUnder section 3, Termination Data:
1. Please be sure to include the Forwarding address if the employee provides it.
Under Section 4, Approvals, Contact Information, Comments:
2. Please make sure to explain clearly the intended pay action in the 'Comments' section to ensure clarity.
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How they should not be filled out
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Incorrect Revised Salary PA example
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Incorrect Revised Salary PA Example
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How they should be filled out
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Correct New Hire PA Example
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Late and Retro Payroll Authorizations
Are Late PAs really a big deal?
Who is impacted by late and retro PAs?
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Problematic Payroll AuthorizationsNew Hire
Terms
Rehires/New Faculty Contracts
Full Time Equivalency(FTE)
Status Changes
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New Hire PA PA’s for New Hires should be received in EIS at least two weeks prior to the
employee’s start date.
There is negative impact if the New Hire PA is NOT received on time. HR Employee Relations Impact:
Will not begin work on day one No access health benefits (i.e. taking advantage of co-payment, urgent medical/dental
service) No Blitz email account No system access to phone directory listing, ID badge, CorpTime, and access to secure
websites. General employee frustration of not having any of the required the access, and to begin
work in time planned. Retroactive Benefits(Arrearages entered in paychecks late and cause financial hardship)
Payroll and Benefits Impact: Retroactive benefits, which means arrearages must be manually entered into paychecks
causing extensive work for HR Benefits No Benefits packet at New Employee Orientation to begin benefit selection Delayed data entry into HR system to begin record in efforts to pay new employee
(especially in cases where Employee Information Services(EIS) is in a week processing a Biweekly payroll)
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New Hire PA cont’dThere is a Positive impact if Employee Information Services
(EIS) receives a New Hire PA ON time:
HR Employee Relations Impact:• No employee frustration• Has a Blitz/email account before start date• Will have a phone directory listing and an ID badge• Access to secure websites and CorpTime
Payroll and Benefits Impact: • Employees are paid on time• Employees are eligible for benefits on their hire date, and can enroll
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Termination PA Term PA’s should be received in EIS at least two weeks prior to the
employee’s termination date.
When a termination PA is late, this causes very serious problems for EIS, HR Benefits, and the employee.
• Federal and State law MANDATE that a HR Benefits department must provide employees with a COBRA notice and option to port or convert their life insurance when they leave Dartmouth or are no longer occupying a benefitted position within 30 days of the event.
• Payroll spends .4 FTE annually on overpayment collections caused by late PA’s. There was $175,000 in overpayments due to late PA’s in calendar year 2008.
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Termination PA cont’dThe impact of Employee Information Services(EIS) receiving a Late Term PA
are below: HR Benefits Impact:
Employees prefer to have this information before their active insurance ends so that they do not go without coverage. This is especially in cases where an employee is seeking insurance coverage when going to another employer.
If Dartmouth misses the 30-day grace period for issuing COBRA, Dartmouth incurs legal fines due to being out of COBRA compliance.
HR Employee Relations: No coverage, which violates employee rights under ERISA, and potential
legal litigation. Delay in vacation payout (Can impact employee financially and create
financial hardship) If COBRA is retroactive to the term date, the individual will be required to
pay for any medical/dental services up front in order to receive treatment.
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Rehires and Changes to Faculty ContractsRehire or Re-appointment PA’s should be received in EIS at least two weeks prior to the effective date.
Due to system limitations, the data transfer between the HR/Payroll system and HR Benefits system, does not reset employee benefits automatically when there was a previous termination in HR/Payroll system. The data is either removed or corrected.
HR Employee Relations Impact: Employee will not have benefits as the system still terminates it. Employees lose their coverage and have no deductions in their paychecks. (This
is often identified when the employee calls HR Benefits because their check is wrong or they could not get a prescription)
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Changes to Full Time Equivalency (FTE)A change in hours or FTE has an effect on how much an individual pays for their
health insurance.
HR Impact:When retroactive changes to FTEs are requested, AND the employee is
decreasing hours, it causes problems as HR Benefits must catch them up for when they were receiving more money than they should have been.
HR Employee Relations/Payroll Impact:When retroactive changes to FTEs are requested, AND the employees is
increasing hours, the employees are usually more anxious to receive their increased allotment and contact EIS to verify when increase is in effect and how it impacts their pay.
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Changes to Employee Status A change in employee status, such as hourly to monthly, or Research Fellow
to Research Associate, affects how the benefits are paid, and in the case of researchers, how they are taxed.
HR Payroll and Employee Relations Impact:Changing from hourly to monthly or vice versa will cause manual benefit
calculation and data entry. Retroactive PAs affect the employee’s pay much later and usually with a
larger amount. When an employee is switched from Research Fellow to Research
Associate taxation comes into play, particularly with Research Fellows. Retroactive PAs for a Fellow will cause substantial taxes to the employee,
which can cause financial hardship.
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Question 2Can you guess which Payroll Authorizations(PA) are usually
late?
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Answer
Additional Payments
Terminations
New Hire
Students
Revised Rate
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Late PAs by Action
38
52
65
450
440
509
279223211
365
238
19523893
211
32118
10735
0%
50%
100%
Revised rate 35 93 211 0
New Hire 107 238 223 45
Termination 118 195 279 65
Student 32 238 509 52
Additional Payment 211 365 440 38
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
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Late PAs 2008
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Special PA Payment TypesRecognition/discretionary/one-time add'l
compensationThis payment type would be used for payments that are
related to achievements accomplished as may be outlined in performance reward programs or specific performance
related agreements.Relocation or signing compensationThis payment type would be used for a sum of money paid
to a new employee as an incentive to join Dartmouth. The expectation is that these would apply to full-time salaried employees, as opposed to a temporary hire and would be a one-time payment. The relocation amount would be a sum agreed upon as an up-front payment to assist in relocation expenses to be used at the discretion of the employee. Amounts reimbursed for relocation expenses should be managed through accounts payable on the appropriate expense reimbursement forms.Dartmouth College 35
Payment Types Cont’dCommissionsThis payment type is a monetary incentive for services
rendered or products sold by employees in sales-related positions. Payments are normally calculated on the basis of a percentage of the goods sold and are generally outlined in a specific employment agreement.
Faculty additional term/Add'l classes taughtThis payment type is intended to be used when a
faculty member agrees to an effort commitment outside the terms of their base appointment agreement. These payment types have been commonly referred to in A&S as “Extra Ninths”.
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Payment Types Cont’dAdditional work performedThis payment type should be used for remuneration for the amount
of effort applied to produce a deliverable or to accomplish a task that was assigned or undertaken significantly outside the scope of a person’s base responsibilities. The additional effort would be expected to have scheduled start and end date with specific results outlined. An example of this type of payment would be for completion of a special project assigned as part of a professional development opportunity.
Other (not common, describe in comments section)
If the type of payment does not fall into any category described above, please choose this payment type and clearly describe the reason in the comments section of the PA. You will be contacted by EIS for further explanation, if needed.
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Problems EIS Sees on Special PAMissing natural classPayment Type # is not chosenMissing Office Location For Additional Payments Bi-Weekly Lump Sum
payments- it’s important for EIS to have the lump sum questionnaire completed and attached to the back of the PA when submitted for backup for compliance
No total payment amount listed, only monthly amount. EIS needs to know both to be sure of correct data entry.
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Additional Payment Special PA
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Student Special PA
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Comments need to state Graduate Student Stipend
Student PA FactsAre usually submitted to hire Grad students who are being paid monthly stipends from grants
Are for now have a payment type of 6 (EIS would enter those as normal procedure indicate)
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Problems EIS sees with Student Special PA
Effective dates are not usually in sync with pay dates(Departments wants students to be paid earlier than effective date listed on PA)
Multiple accounts will be listed, but the dollar associated with each account and LD percentages are not matched correctly
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Presented by:
Cheryl Josler
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What is Fringe?Fringe benefits are benefits which employees receive from
their employment but which are not included in their salary or wages.
They include such things as retirement
contributions, dart flex credits, tuition assistance, short term
and long term disability pay, and workers compensation.
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Really Big Picture
Step 1
Payroll Runs
Step 2
Charges sentto Dept Accts
Step 3
Credits toFringe Accts
from DeptAccts
Step 4
Bills Paid
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Smaller Picture (Process Flow)PA is completed by DeptEIS Enters PA into HRMSDepending on the data entry, HRMS gives the person the
appropriate benefits and designates the appropriate fringe rate
Account strings are entered in Labor DistributionPayroll is RunPayroll data is sent through the LD module – Someone’s
total pay is distributed to multiple accountsData is sent to the General Ledger (GL)Departments monitor their Discoverer and GL reports to
see the chargesWe see the credits going into the Fringe Pool AcctsAnthem, Crosby, etc get paid out of the Fringe Pool Accts
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Fringe Calculation Logic
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Payroll Process identifiesFringe Rate to be used Fellow ?
No Fringe0%
Yes
ResearchAssociate B ?
Partial Fringe24.5%
Yes
Regular
No Pension
Yes Regular
Benefits
Eligible
No
No
No
YesFully Burdened38%
No
Statutory Fringe 9%Regular, < 50% FTE
Temporary (FT/PT)
How does the info on PA inform the process?
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Regular PA
Special Payment PA
Type of Pymt: 1 2 3 4 5 6
Helping Departments UnderstandTemp Vs Regular
Regular: An employee will have regular status if hired into a position that is expected to last at least nine months in a continuing capacity, year after year, and the work schedule meets the following requirements:
Full-time - Regularly scheduled hours of 37.5 to 40 hours a week. Part-time - Regularly scheduled hours of less than 37.5 hours a
week.
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Helping Departments UnderstandTemp Vs Regular
Temporary: Employees have a temporary status if working on an on-call status, or when working either full or part-time with the understanding that the employment will normally terminate within nine months from the start date or completion of a specific assignment. Hours worked may fluctuate depending upon the needs of the particular department. Temporary employees are covered by Workers’ Compensation, Social Security, and Unemployment Compensation. They are not eligible for Dartmouth College fringe benefits. They are paid only for hours worked.
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Helping Departments UnderstandIF Regular
Benefit Eligibility Regular employees are eligible for all benefits subject to the
qualifying requirements of each plan, provided they are working at least twenty (20) hours each week, in positions of at least nine (9) consecutive months duration each year. When working less than full-time, regular, benefit eligible employees receive pro-rated benefits according to their percent of working full-time.
Temporary employees, and regular employees working less than twenty (20) hours per week, or less than nine (9) months duration each year, are not benefit eligible, but are eligible for Workers’ Compensation, and can elect a Supplemental Retirement Account. In addition, regular employees who are not benefit eligible are covered under Travel Accident Insurance.
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Group Activity
Payroll Authorization Scenarios
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Scenario 1 Ice Cream is due to start working with
Dartmouth in the Treat Department effective 3/15/2009 as an hourly Temporary employee. He will be making $15.00 an hour with charges going to GL account 00.000.000000.000000.0000.6182.
Please complete the Payroll Authorization for
this action.
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Scenario 1 Answer
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Scenario 2Might Fine Superstar is going to change from a
Research Associate B to a Research Associate C in Red Carpet Department effective 4/1/09.
Please complete the Payroll Authorization for
this change.
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Scenario 2 Answer
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Fill out if staff
Fill out if Faculty, Fellow, or RA
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Scenario 3Rub R Stamp is currently a Faculty member with
2 Regular assignments, one is in the Pad Department and the other is in the Ink
Department. The Pad Department wants to change Rub’s monthly amount of pay due to an
FTE change of .25 to .50. The new monthly salary will be $4600.57 a month effective
4/1/09.
Please complete the Payroll Authorization for this action.
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Scenario 3 Answer
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Scenario 4Knuck L Sandwich is getting another Non-
Exempt temporary job on campus that is to start on 4/21/09 with the Right Hand Department. He will be making $11.00
an hour to GL String 00.000.000000.000000.0000.6182. This
is in addition to his normal hourly assignment in the Left Hand
Department. Please complete the Payroll Authorization
for this action.
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Scenario 4 Answer
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Scenario 5Butter Ball has given notice of resignation in the Perdue Department effective 5/1/09 and has accepted another position on campus in
the Oven Department effective 5/3/09.
Please complete a Payroll Authorization for each department for this action.
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Scenario 5 Answer
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Scenario 5 Answer Cont’d
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New Form Changes
Payroll Authorization Removal of Going on LOC/Return from LOC pay action
Special Payroll AuthorizationAddition of Payment Types Recognition/discretionary/one-time additional compensation Relocation or signing compensation Commissions Faculty additional term/Additional classes taught Additional work performed Other (not common, describe in comments section) Removal of End Date on Regular PA
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Where to find the PA Forms
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Select PA in this section
How Do I stay Informed?Our Website:
Http://www.Dartmouth.edu/~control/payroll
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How can I find out about Deadlines?
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Select Payroll Schedules
Biweekly Yearly Pay Schedule
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Deadline Deadline
Monthly Yearly Pay Schedule
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Double payroll
run
When reports are sent to
departments
Monitoring EIS Blitz Bulletin
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Select Employee Information Services
Monitoring EIS Blitz Bulletin
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Up-to-date Topics
Who do I contact in EIS?
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THANK YOU for Coming!
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