Rachel Brooks, CPPProduct Support Specialist

Sentricrbrooks@sentric.net

04/21/23

04/21/23

Integration: Payroll, HR, Benefits into one shared database

Interfaces: Those departments transferring data from one system to the other & to other company systems

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Definition: the place where 2 systems meet! – i.e., they can “talk” to each other, be understood, and share data

HR, Benefits, Direct Deposits Labor Costs, Bank Accounts, GL Time & Attendance, Accounts Payable, SSA Outside benefit administrators; SUI, Taxes,

Child Support

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Definition: System that provides a shared database for HR, PR & Benefits

Reasons to integrate: ◦ Streamline HR, PR, Benefits functions◦ Consistency of data in 1 database◦ Improvements in system◦ Security!

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Definition: Fully outsourced – i.e., like freelance accountants!

Low fixed costs No extra room or extra employees New services can be added Reduction in processing delays Reasonable processing costs Fewer research problems Networking Training & Support

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Lack of control over security Filing & depositing errors Little flexibility for late changes Unique needs create problems Potential high variable costs No control over breakdowns

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Definition: provide your company with an application to process your payrolls

Installed on your servers Accessed by you on their servers Fee based on each employee’s payment

processing Usually no need to hire additional staff to

process payroll

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Definition: outsourcing of business processes & functions, including support, including payroll & benefits administration

i.e.: the BPO takes over the entire business process – PR, HR & Benefits and runs it!

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Definition: Computerized payroll system located on company premises

Hardware: Computers, networks Real time or batch processing Advantages:

◦ Control; Access; ↓Downtime; Security; Scheduling; Applications

Disadvantages:◦ Space, Costs; Staffing; Capacity; Obsolescence;

Disaster recovery; wrong computers!

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Integration & Interfaces? Functions? Who will need access? How will data be processed $$$$$$$ -- how much? Get input from all users – their needs &

desires

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1) Build a Project Team2) Analyze what the System needs to do3) Prepare a RFP4) Select a System5) Implement the System6) Evaluate the System’s Performance7) Controls & Security

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Payroll HR Benefits Accounting Tax Budget/Finance MIS Management

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Document current system and it’s problems Define Objectives Define requirements

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Purpose in issuing the RFP: Why new system is needed Specific payroll info – size, frequency,

unions, salaried, hourly Earnings & Deductions Functional requirements now & future HR & Benefit integration?

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Ask for demo References – either by phone or site visits Ask for demo – of certain problems that vendor

states can be addressed Ensure all government reports, taxes, etc., can be

handled Ask for demo on client server, not vendor’s Service & training support and cost? All costs included on proposal both now & future Require flexible & user friendly report writer

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Failure to provide time to do the job right by team members

Omitting all departments affected on team Failure to prioritize Not considering future needs

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Preparation – goals, time for team members, outside consultants?, time for the project, support by upper management

Training Gap Analysis Converting old data & adding new Testing

◦ Parallel testing◦ System conversion!

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Internal report requirements Unexpected legislation Radical benefit changes New Unions? System expansion

These should be periodically reviewed!

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System Edits Auditing & Data Sampling Batch controls Correction procedures Balancing & Reconciling

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Include:◦ Confidentiality statement; ◦ Introduction & high level overview; ◦ Navigation; ◦ Processing; ◦ Calendar◦ “Guts”

Leave out:◦ Company Policies◦ Technical Material

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Packaging Assign to a job – not a person! Keep it up to date Documentation promotes control!

◦ Useful for cross-training◦ Procedures eliminate shortcuts◦ Ensures consistency by users

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Personnel concerns:◦ Segregation of duties◦ Rotation of job assignments◦ Paychecks go to payee only!◦ Conduct physical payouts – No Phantoms!◦ Rotate some duties to accounting◦ Background checks

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System Security◦ Limit access◦ Secure files◦ Develop audit trails◦ Anti-virus◦ Backup! – and store off site

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Physical plant issues◦ Climate control◦ Overheating◦ Cold◦ Power surges◦ Dirt◦ Humidity◦ Power

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Fires, floods, hurricanes, earthquakes, terrorism, explosions: employees still must be paid!◦ Interim Office space◦ Equipment rental◦ Temporary housing◦ Backup files – off site!◦ Employee safety◦ Communication◦ Electronic vaulting

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Benefits:◦ Less time spent on processing◦ Fewer errors◦ Decreased costs

FLSA, FMLA and SOX compliance◦ Results in penalties if not◦ DOL found – 48% of those audited failed to

comply with federal labor laws!

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Rules Engine Integration with HR, PR & Accounting

Systems Configuration vs Customization Web-based Alert notifications – Secure ESS and MSS No PC software

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What is it? – Allows employees and managers to manage time-consuming administrative tasks – such as benefit enrollments, address changes, etc. through:◦ Kiosks◦ IVR◦ Internet & Intranet

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Allows managers to initiate changes to direct reports◦ Promotions, salary changes, transfers◦ Performance appraisals & salary administration◦ Changes can be routed for approval via workflow

Outsourcing: ASP/SaaS: ◦ Application Service Provider aka Software as a

Service◦ Hosted applications – such as Payroll, HR, Benefits◦ Employee gains access via their own computer

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1. Build a team2. Select hardware/software3. Encourage technology use4. Security5. Develop codes of conduct

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Definition: uses the Internet as a means of accessing an organization’s data and the HRMS application logic◦ Pay stubs◦ W-2’s

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Keep thinking (and repeating)……I will be a CPP!

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