Slide 1

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 2

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 3

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 4

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 5

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 6

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 7

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 8

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 9

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 10

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 11

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 12

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 13

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 14

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 15

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 16

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 17

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 18

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 19

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 20

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 21

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 22

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 23

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24


Slide 24

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

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

22

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







Hackett’s Best Practices are certified when there is a correlation with worldclass performance metrics
Answerthink Overview
| JunePayroll
30, 2003
Achieving
Best Practices Through PeopleSoft Payroll

33

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

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

44

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

55

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

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

66

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.

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

77

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

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

88

Achieving Payroll Best Practices Through PeopleSoft Payroll

The Implementation

Targeting

Architecture

Construction

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

Migration

Evolution

99

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Architecture
1

2

Project
Initiation

Executive
Interviews

Current State
Review

3

4

5

6

7

Vision
Validation

9

10

Quick Wins Implementation

Quick Wins Development

Best Practice
Vision

8

Solution Design

Requirements and Fit/Gap Analysis

Technology Architecture Planning

Implementation
Planning
Business Case
Development

Ongoing Project Management/Program Office
Ongoing Change Management & Communications

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

10
10

Achieving Payroll Best Practices Through PeopleSoft Payroll
The Implementation
Migration

Construction
1

2

3

4

5

Project
Initiation

6

7

8

9

10

11

12

13

14

15

16

17

18

Quick Wins Implementation
Executive
Presentation

Detailed Org. Design
Policy & Procedure
Development

Conference Room
Pilot

Education, Training, & Coaching
Production Cutover Planning

Application Configuration
Functional
Specs

Technical
Specs

Custom Development
Performance/
Stress Testing

Data Conversion
Test Planning
Non-Production
Environment Depl.

Production
Cutover

Function Testing

Production Environment Deployment

Integration
Testing

Acceptance
Testing

System Testing

Technical Knowledge Transfer

System
Optimization

Ongoing Project Management/Program Office
Ongoing Change Management & Communications
Milestones

Process Detail

Test Scripts

Production Cutover
(Acceptance)

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

11
11

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

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

12
12

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

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

13
13

Human Resources

Departments

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

NSS
Support
Center

Newspaper Payroll Dept

Yes

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

Delivered PS
process (TL
Load) is run to
load data from
Time and
Attendance to
Payrolll

Payroll department
reviews payroll error
messages
generated by load
from Time and
Attendance

Are there
errors? ***

No

Enter
garnishments, one
time deductions,
additional
payments

Mass data upload
to paysheet (Such
as commission
etc)

Pre-calc Audit
report is run to
verify integrity
of payroll,
benefit and
employee
information

B

Run T&A Admin

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

14
14

Newspaper Payroll Dept

Human Resources

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

HR/Benefits make
appropriate
changes to the
data

Yes

B

Payroll reviews and
resolves issues
identified on Precalc
Audit Report

Run TL Load
again, if necessary
*

Preliminary Pay calc
process is run to
calculate earnings and
deductions

Payroll reviews
payroll error
messages generated
by pay calc process

Are there any
error messages?

Are the
messages HR/
Benefits related?

Yes

No

Payroll makes
appropriate
changes to resolve
the errors

No

Support
Center
NSS

Yes

Run Final Pay
Calc Process

Run Pre-confirm
Audit report to
verify data

Are there any
error messages?

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

No

Run Pay
Confirmation
Process

Post
Confirmation
Process

15
15

Accounts Payable

Achieving Payroll Best Practices Through PeopleSoft Payroll
Current Process

Support
Center
NSS

Payroll Dept

AP receives the
check requests
and processes
payment.

Print and distribute
checks and direct
deposit advices

Start

Payroll
Process

Run Direct Deposit
Prenote Report,
Prenote Memo for
employees.

Run other reports:
Payroll register,
Deduction register,
check register,
Payroll Summary
etc.

Distribute hard
copies of the
reports within
newspapers as
appropriate.

Submit Manual
check requests to
AP for tax filing,
garnishments, wire
funding for Benefits
etc.

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

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

Run Payroll to GL
Interface

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

16
16

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








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

17
17

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Implementation Approach Taken
Consolidate / Centralize
The payroll strategic transformation is “the catalyst” for
fundamental change which will result in effective and efficient full
payroll service delivery to newspapers

·

Process Vision

Shared service center – centralize payroll processing to
administer all payroll functions
Non essential processes – like multiple requests,
interfaces and reports for external providers and
regulatory agencies

·

Standardize
·
Data
Standards

One consistent process to enable payroll to increase
accuracy, efficiency and effectiveness
Consistent, simplified policies and procedures to reduce
complexity
Standard pay cycles, earnings and deductions

·

Consolidate

·

Best Practice Assessment
Current State Assessment

Eliminate
·

Transactions – like process to verify time accrual
between T&A and Payroll
Work steps to complete work – like wait for email /
phone confirmations,
Work steps that don’t add value to the process

·
Payroll Process
Transformation

Service
Delivery

·

Automate
·
·

Employee and Manager self service
Workflow solutions

Negotiate and explore to outsource
Self Service

Policy
Changes

·
·

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

Check / Direct Deposit printing & mailing
Tax reporting and remittances

18
18

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

NSSCenter
Support

Human Resources

Departments

Accounts Payable

Payroll Processing – Future Proposed Practice

AP to Payroll
employee
expense
reimbursement
process

Start

HR keys in all data
changes prior to
predetermined
data entry deadline
*

Payroll keys in all
payroll data changes
(i.e. taxes and direct
deposit enrollments)
prior to predetermined
data entry deadline

Payroll enters/makes
correction to Time
Entry Page

P-1

P-2
Mail
Checks

Call Center

Employee
Questions
?

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

19
19

Achieving Payroll Best Practices Through PeopleSoft Payroll

Best Practice Payroll Process

Post Pay Confirmation Process - Future Proposed

NSS

Support Center

Accounts Payable

Journal Generator

AP receives the
funding requests
and processes
payment.

Start

Payroll
Process

Print and mail
Checks & direct
deposits

Run registers and
reports

Run Direct Deposit
and Positive Pay
Interfaces to the
Bank

Run Payroll to GL
Interface

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

Outbound interface
files are sent to
Aetna, Blue Cross/
Blue Shield, Fidelity,
and Mercer.

Check
Reconciliation
Process

20
20

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

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

21
21

Achieving Payroll Best Practices Through PeopleSoft Payroll

Benefits Realization- Other Key Numbers
Payroll services cost per employee
250

Payroll services personnel per 1000 employees

$234

4

200

3.84

3

150

$96

2

1.52

100
1

50
0

0
Current

Projected

Current

Estimated reduction in payroll tax fines,
penalties & interest

Cost per pay check

0%

5

-10%

4

-20%

3

-30%

-33%

$4.87

$2.00

2
-50%

-40%

Projected

1
0

-50%
Projected (Low)

Projected (High)

Current

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

Projected

22
22

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

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

23
23

Questions

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

24
24