Concepts Concurrent Emp-092806

7/31/2019 Concepts Concurrent Emp-092806

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HR Concepts Overview

The presentations are strictly an overviewof new terminology and concepts.

The presentations do not replace formal

classroom training.The presentations will not fully detail thenew business processes.

The presenters will focus strictly on thesession topic.


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Lets Get Started

Today, our meeting has multiplepurposes.

1st

, well discuss the Concepts of Concurrent Employment.

2nd, well discuss a plan to minimize therisk associated with ConcurrentEmployment.


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What is Concurrent

Employment?From an employee perspective

An employee is considered to beconcurrently employed whenever theemployee holds multiple assignmentsin the new system.


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Examples of Non-ConcurrentEmployment in the NewSystem

Employees with Call Back Pay Processed with an attendance code in the

Cross Application Time Sheet (CATS).

Employees with Unit Rates Processed with an override wage type in

CATS.

Employees with a Shift Differential Part of an employees master data Processed with an attendance code in CATS.


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Examples of Non-ConcurrentEmployment in the NewSystem (cont.)

Employees with Overloads or OtherSpecial Payments

Processed on Infotype 14 (Create RecurringPayments/Deductions) and Infotype 15(Additional Pays). Both infotypes allowindependent cost distribution.

Employees with AdministrativeAdjustments Processed as a separate wage type on

Infotype 8 (Create Basic Pay).


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What is Concurrent

Employment?From a system perspective

Concurrent employment processing is relativelynew to SAP.

Until recently, SAP human resource modulesdid not support employees with multipleassignments.

Higher education and health care customersrevealed the need for employees to holdmultiple assignments.


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Concurrent EmploymentFunctionality

To accommodate organizations that allowemployees to hold multiple assignments, SAPimplemented the following:

In ERP 2004, SAP introduced new functionality enablingemployees with multiple assignments to be maintainedin the system.

A new Person ID was established to uniquely identifythe person.

Every assignment held by the employee is linked to theemployees Person ID.

Each assignment held by the employee is given a uniquePersonnel Number (also known as PERNR).


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New Functionality

New infotype framework to enable datasharing between assignments (ex: name,address, SSN, etc.)

New infotype to capture the mainpersonnel assignment The main personnel assignment holds the

employees benefit information. Employees logging into ESS to select benefit

plans during open enrollment will find theirbenefits data stored on their mainassignment.


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New Functionality (cont.)

A new Payroll schema was created forconcurrent employment processing.

The new schema syncs employee dataat specific payroll processing points.Payroll data is synced for taxing andcheck-writing purposes.

Each employee receives only one checkand one W-2, even when holding multipleassignments.


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Challenges of Concurrent

EmploymentImplementing the SAP ConcurrentEmployment modules enables newfunctionality, such as one paycheck peremployee, one W-2 per employee, etc.However, there are still many areas of thenew system that are not touched by theConcurrent Employment enhancements.


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Challenges of ConcurrentEmployment (cont.)

In the next few slides, we will quicklyreview key concepts from earliersessions.

We will then explore some of thechallenges that the organization will facerelated to concurrent employment.


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Quick Review of KeyConcepts from PreviousSessions

Positions

Assignments (Employee in Position)

Enterprise Structure Values

Capacity Utilization Level

Payroll AreasMain Assignment


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Review of Positions

Positions are specific occurrences of jobsand located in organizational units(departments).

Each position carries enterprise structurevalues. These values drive benefitdefaults, payroll area defaults and accrualcalculation rules.

Each position has a unique positionidentification number (can be compared totodays budget item number).


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Review of AssignmentsEmployees are assigned to positions aspart of the personnel actions.

An assignment is an employee in a

position.Each assignment is given a uniquepersonnel number (also known asPERNR).

Enterprise structure values inherited fromthe position may be changed during theassignment process.


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Review of CapacityUtilization Level

Capacity Utilization Level (CUL) is storedon Infotype 0008, Create Basic Pay.

CUL is stored as part of an employeesassignment information.

CUL is not stored on the position.

CUL is similar to todays FTE.


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Review of Payroll Areas

Four valid payroll areas in the newsystem:

Biweekly Academic Fiscal Non-Pay

Payroll area determines payfrequency and processing.


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Review of Main Assignment

All employees will have a mainassignment.

The main assignment is where anemployees benefits are maintained

The main assignment drives updatesto personal, time, accruals andbenefits information via Employee Self-Service (ESS)


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Lets look at examples

We will review three examples of concurrent employment:

Professor with three assignments in threeorganizational units (all pay eligible).

Professor with two assignments in twoorganizational units (one pay eligible and onenon-pay eligible)

Staff with two pay eligible assignments in twoorganizational units in different payroll areas.


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Example #1

Dr. Brown has three paying assignments: Assistant Professor @ .10 CUL in Bindley

Bioscience Center, fiscal-year appointment Assistant Professor @ .65 CUL in Basic

Medical Sciences, fiscal-year appointment Assistant Professor @ .25 CUL in Biomedical

Engineering, fiscal-year appointment

He is paid a total of $100,000 for all of his assignments.


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Position Impact

The HR compensation analyst will need tocreate three positions:

Position 1 in Bindley Biosciences Position 2 in Basic Medical Sciences Position 3 in Biomedical Engineering

Each position will require careful creationof the personnel subarea to indicate that

each position is benefits eligible, eventhough two positions are less than .50CUL.


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Pay ImpactEach assignment will require a uniqueInfotype 0008, Basic Pay. The basic paywould look like this:

1 st assignment @ .10 CUL, $10,000 2 nd assignment @ .65 CUL, $65,000 3 rd assignment @ .25 CUL, $25,000

Future salary changes will require thateach assignments basic pay record beappropriately updated (three separateactions).


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Accrual Impacts

Each assignment will accrue vacation, sickleave and other accrual balances separately.

Any adjustment to accrual balances will

require a separate entry for each assignment. If Dr. Brown updates the accrual adjustments

via Employee Self-Service, he may need toupdate each assignment record via aseparate ESS log in.


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Supervisory Relationships

Each of Dr. Browns positions will require aunique supervisory relationship to becreated and maintained.

Any financial or HR transactions initiatedthrough ESS or MSS may require that he loginto the appropriate assignment via theseparate ESS/MSS log-in to ensure accuratetransaction routing to the appropriateapprover.


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Dr. Brown Summary

Because he holds multiple payingassignments, Dr. Brown has an increasedrisk of experiencing errors with his pay,benefits or accruals.

Why? Any errors in enterprise structuredata or data defaulted from the enterprisestructure values could result in errors tohis pay, benefits and accrual calculations.

Since Dr. Browns job duties are verysimilar, it is desirable to eliminate hismultiple assignments.


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Example #2

Dr. Green has one paying assignment andone non-paying assignment:

Professor @ 100% CUL in Computer Science,

academic-year appointment Courtesy Professor @ 0% CUL in Electrical andComputer Engineering, academic-yearappointment

He is paid a total of $100,000 for all of hisassignments.


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Position Impact

HRS will need to create one position,the first professor position @ 100% CUL.

The second position is a grouped position.

Assuming that the courtesy position isalready available in the ECE department,there is no need to create a secondposition.

Because the 100% CUL faculty position isalways benefits-eligible, the personnelsubarea creation is simplified.


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Position Impact (cont.)

A work schedule must be selected for his100% CUL faculty position. The courtesyposition does not require a work schedule

since it is non-benefits-eligible and non-pay.

One position must be designated as themain assignment. The benefits-eligible/pay-eligible position would be the mainassignment.


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Assignment Impacts

An identical payroll area must be set foreach assignment.

In this case, both the professor assignment(academic-year) and the courtesy professorassignment (non-pay) will be set to theacademic-year payroll area.

The HR processor will need to consciouslyoverride the defaulted non-pay payroll areafor the courtesy professor assignment toensure that both assignments store anidentical payroll area.


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Pay Impact

Each assignment will require a uniqueInfotype 0008, Basic Pay. The basic paywould look like this:

1 st assignment @ 100% CUL, $100,000 2 nd assignment @ 0% CUL, $0.00

Any salary changes will require only onebasic pay record to be updated.


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Accrual Impacts

Only Dr. Greens benefits-eligibleassignment will accrue vacation, sick leaveand other accrual balances.

Any adjustments to balances will be enteredagainst the benefits-eligible assignmentonly.

He will only need one ESS/MSS log-in if hewishes to update his sick leave or otheraccruals.


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Only Dr. Greens paying position willrequire a unique supervisory relationshipto be created and maintained.

Any financial or HR transactions initiatedthrough ESS or MSS will require only oneESS/MSS log-in to ensure accuratetransaction routing to the appropriateapprover.


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Dr. Green Summary

Although Dr. Green is concurrentlyemployed, he is less likely to experienceerrors with his pay, benefits and accruals.

Why? All pay, benefits and accruals aredriven from the paying position only.

The non-paying position doesnt impact

pay, benefits or accruals.


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Example #3

Sally Smith holds a regular Administrative/Professional position and a temporaryusher position.

A/P @ 100% CUL in Liberal Arts, fiscal yearexempt appointment Temporary usher @ 0% CUL in Hall of Music,

biweekly non-exempt appointment

She is paid $35,000 for the A/P positionand $8.00/hour for the Usher position.


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Position Impact

HRS will need to create one position, theA/P position @ 100% CUL

The second position is a grouped position.

Assuming that the temporary usherposition is already available in the Hall of Music, there is no need to create a secondposition.


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Position Impact (cont.)

Because the 100% CUL A/P position isalways benefits-eligible, the personnelsubarea creation is simplified.

A unique work schedule must be selectedfor each position to represent the normalhours/days worked for each of Sallyspositions.


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Assignment Impact

An identical payroll area must be set foreach assignment.

In this case, both the A/P assignment and

the temporary usher assignment will be setto the fiscal-year payroll area.

The HR processor will need to consciouslyoverride the defaulted payroll area for the

usher assignment to ensure that bothassignments store an identical payroll area.

One assignment must be designated as themain assignment.


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Pay Impact

Each assignment will require a uniqueInfotype 0008, Basic Pay. The basic paywould look like this:

1 st assignment @ 100% CUL, $35,000 2 nd assignment @ 0% CUL, $8.00/hour

A salary change to either assignment willrequire updating of the appropriate basic

pay record.


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Accrual Impacts Only Sallys benefits-eligible assignment will

accrue sick leave and other accrual balances. Any adjustments to balances will be entered

against the benefits-eligible assignment only. Sally may need two ESS log-ins:

The first to initiate HR or financial transactionsthrough SAP and to report vacation and sick leavebalance adjustments for the A/P assignment.

The second to report time worked for the hourlyassignment (assuming the department will allowher to report hours through ESS).


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Only Sallys A/P position will require aunique supervisory relationship to becreated and maintained.

The hourly temporary position will nothave a supervisory relationship created inSAP. Instead, a time administrator willaudit time and attendance data for theposition.


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Sallys Summary

Because Sally holds multiple payingassignments in varying payroll areas, she hasan increased risk of experiencing errors due

to conflicting enterprise structure values.Since Sally holds very different positions withdifferent rates of pay, it is likely that she willneed to remain concurrently employed.

HR processors will need to exercise greatcare when processing Sallys records.


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Discussion of Payroll Area

Each employee may be paid in only onepayroll area.

For employees holding positions normallypaid in different payroll areas, the HRprocessors must make a decision as towhich payroll area an employee will beassigned.

Following is the logic for the decision.


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Payroll Area Decision

If an employee holds a non-exempt andbenefits-eligible position with any exemptposition (either benefits or non-benefitseligible), the employee will be set to thebiweekly payroll area.

The previously exempt position will beconsidered non-exempt with an hourly

rate. Time reporting will be required.(Ex: 50% clerical position and teaching acourse: Zero employees impacted atlatest conversion.)


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If an employee holds an exempt position(either benefits- or non-benefits-eligible) witha non-exempt and non-benefits-eligibleposition, the payroll area will be set to eitherthe fiscal- or academic-year payroll area asappropriate.The earnings for both positions will be paidon the monthly payroll. For example:

Graduate student assignment with an under-graduate student assignment (~ 600 staff impacted)

A/P or faculty assignment with a temporaryassignment (~ 100 staff impacted)


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If an employee holds multiple exemptpositions paid in both the academic-yearand fiscal-year payroll areas, theemployee will be set to the academic-yearpayroll area. (Ex: Graduate student withan academic-year appointment in Dept Aand a fiscal-year appointment in Dept B.)


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Human Resource Services will work closelywith OnePurdues Change ManagementTeam to communicate payroll area changes

to impacted employees.


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Summary

The organization will face multiplechallenges related to concurrentemployment:

Extra steps will be added to processes. Post audits will be necessary to ensure

accuracy of data. Pay, benefits and accruals will be negatively

impacted if all aspects of concurrent

employment are not appropriately addressed.


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Summary (cont.)

Employees will face multiple challengesrelated to concurrent employment:

The ability to update certain informationthrough ESS/MSS may be impacted due toincompatibility with concurrent employment.

Multiple log-ins may be required for ESS/MSS. Accrual balances will be stored separately for

each position, requiring separate updates tobalances.

Pay, benefits and accruals will be negativelyimpacted if all aspects of concurrentemployment are not appropriately addressed.


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Minimizing Risks Associatedwith Concurrent Employment(cont.)

Strategies to minimize risk include: Where feasible, establish all CUL and pay in

one position/one department. If appropriate, establish a no-pay position in

secondary departments to reflect relationship. Distribute salary in PAIS or on IT 0027; create

Cost Distribution to multiple organizational

units; or send funding to the departmentholding the position.


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Minimizing Risks Associatedwith Concurrent Employment(cont.)

The OnePurdue HR team, working incoordination with HRS, Payroll, Costing,the Provost Business Office and the

director of business managers, iscurrently documenting processes formerging concurrent assignmentswhenever possible.

Some positions may be merged prior togo-live, while others may be merged aftergo-live.


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Reporting Impacts

A new field, Interdepartmental ExpenseFTE, will be calculated in the BusinessWarehouse.

This new field will display Pay FTE andwill be calculated from payroll results.

The new budget system will also

accommodate FTE tracking forinterdepartmental staff.


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Example of Interdepartmental FTE

Review Interdepartmental FTE Handout


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Other Personnel Costs: SalaryPlanning & Distribution Layout

(Columns A - I)


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Other Personnel Costs: SalaryPlanning & Distribution Layout

(Columns J - Q)


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Next Steps

Meetings will be scheduled with businessstaff to outline the process for mergingassignments.

Details to follow!


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To learn more

Click to the following URL:http://www.purdue.edu/onepurdue/resources/onepurdue_hr_concepts_education_datalinks.shtml

There you will find: Links to the Concepts presentations and

documentation about payroll area and mainassignment decisions.

An evaluation form for the concepts session.We appreciate your feedback!


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Questions?

Concepts Concurrent Emp-092806

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