14.0 Off Cycle Payroll Narrative HR & Payroll Business Process Redesign (BPR)

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14.0 Off Cycle Payroll Narrative

HR & Payroll Business Process Redesign (BPR)

BPR Narrative for: 14.0 Off-Cycle Payroll Processing

Version 2.0 11/19/2012

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University of Washington

HR & Payroll Business Process Redesign (BPR)

Narrative: 14.0 Off-Cycle Payroll Processing

Process Overview

A. Introduction

This Business Process Design document will describe the future state business processes for the Off-Cycle Payroll Processing component of the Human Resources / Payroll Business Process Redesign effort by providing the activity diagrams and contextual information around each of the activities within the diagram. The activity diagrams will outline the sequence of activities and tasks that perform a specific business function.

The core objectives of this Process Design Document (PDD) narrative document are to:

 Document the future-state processes for Off-Cycle Payroll Processing

 Define the roles and responsibilities associated with the future-state process design

 Identify the organizational implications resulting from the process improvement

 Document and track open issues resulting from the development of the Process Design Document

Process Overview – Off-Cycle Payroll Processing

The 14.0 Off-Cycle Payroll processes cover the activities involved with the overall Off-Cycle Payroll Processing, including: overpayments, underpayments, and stop payment/reissue of checks. The following lists the processes that are covered in this narrative.

14.0.0 - Off-Cycle Payroll Processing

 14.0.0 – Off-Cycle Payroll Process Summary

 14.0.1 – Overpayments

 14.0.2 – Underpayments

 14.0.3 – Stop Payment/Reissue Check

 14.0.4 – Process final payment for Separations

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Process Design Guiding Principles

We followed a number of guiding principles to inform the design of the future state processes. These guiding principles help with decision making.

 Keep the end user in mind by being effective, efficient, and practical  Design for future flexibility and not for history

 Encourage process standardization where possible

 Be efficient by eliminating process redundancies (E.g., 7 levels of approval)  Develop processes based on university wide decisions

 Avoid defining processes that will lead to customization of the HR/payroll system where possible

General Assumptions

The following is a list of general assumptions used to gather information and design the future-state business processes:  Items on Technology future functionality will be considered in process discussions

 Business Process Design is iterative; later phases will drill to further detail

 Processes are reviewed by the appropriate subject matter experts as indicated by the university  Whenever possible, the default approach is to leverage the use of Technology as much as possible

 The scope of the Off-Cycle Payroll process design workshop encompasses activities related to the standard activities associated with Off-Cycle Payroll processing.

• Integration points between other departments and the payroll office will be clearly defined (i.e. HR, Benefits, Compensation, etc.)

• Regulations and rules are incorporated timely and may feed from other departments to Payroll (e.g. new federal legislation, foreign national tax treatments, involuntary deduction ordering, etc.)

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B. Process Improvement Opportunities

The proposed future state Off-Cycle Payroll Business Process is intended to help address many of the pain points associated with the current process:

Area Current Inefficiencies Benefits in the Future State Processing

Efficiency and Accuracy

 Significant manual calculations and data entries are currently required to process underpayments; thus, increasing the potential for errors and consumes valuable resource time

 Lengthy and cumbersome process for handling off-cycle activities

 Error in employee data/information caused by scattered information amongst multiple systems and sources

 Leave and accrual system is not integrated with payroll system creating unnecessary

overpayments

 Technology will significantly improve accuracy and efficiency in the processing of off-cycle activities, free up FTE’s to work on other activities such as compliance and analyses

 The use of technology will help to eliminate the cumbersome process of tracking, reporting, and processing replacement payments for stale dated checks (paycards and direct deposit for off-cycle checks)

 Single source for employee data, allows for consistent employee information and appropriate processing; improves the processing of overpayments, hand drawn checks, and

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 Costly processing for Off-cycle checks; no ability to direct deposit off-cycle checks

 Certain payments require off-cycle checks such as supplemental income, etc.

separation payments

 Technology will allow multiple payment types to be processed such as supplemental income

 The ability to make direct deposits during the off-cycle period significantly increases customer service and may decrease costs; currently, a two day direct deposit payment cost is $.05 per transaction and off-cycle paper check cost is $.27 per printed check (one day direct deposit cost is $.25 per transaction; same day $1.50)

 Technology can generate off-cycle checks eliminating Payroll to maintain check printing software resulting in a $7,000 annual savings

Reviews and Approvals

 Documentation to support PERM entry is maintained outside the payroll system, for

 Technology workflow increases ability to track data history, allowing for less time spent tracking down information

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example, signed documents located in employee’s file  Provides visibility to transactions allowing supporting documentation to be supported by technology Compliance  Handling of overpayments in accordance with Washington State regulations requires significant touch points between departments, employee, and other agencies. Due to policy rules, this process

requires detailed attention to documentation that can be time intensive

 Manual review of all deductions and

reductions on off-cycle

 Allowing for appropriate documentation and timely payments and repayments

 Effectively incorporates new regulatory rules timely and increases compliance with other departments (i.e. new Benefits rules, updated state regulations, garnishments, tax depositing, etc.)

 Increase compliance for taxation of supplemental income  Increases transparency to hours/pay to calculate involuntary deductions Communications and Integration with Others

 Excess time spent validating and coordinating with

 Improves departmental and employee communications via automated notifications of

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departments and employees to verify documentation and/or process payment corrections  Lack of notifications between departments and employees

payroll changes or adjustments

 Transparency to payments through technology

Technology Automation

 Lack of technology automation causes longer processing times

 Multiple databases and/or systems used to track various information leads to multiple data entries and increases inaccuracies leading to over/under payments

 Numerous

under/overpayments and collection activities are conducted due to lack of an integrated time tracking system and

 Incorporates technology to automate activities where appropriate

 Improves communications by speeding up notifications, requests and the routing of information to appropriate parties quickly

 Technology will help Payroll to anticipate over/underpayments, leading to speedy recovery of payments as appropriate

 Increases efficiency via

automation in calculating and handling of

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inaccurate employee work status and/or hours work information

 Manual Voluntary Employment Benefit Association process (VEBA); requires database to track activities

payments, and processing of final payments for separations, resulting in less manual and retro-activities

 Improves payroll run calculations through

automation, allowing for better reporting and quicker

processing times

 Appropriate handling of

employee data depending on the situation, allows for sensitive handling of information and promotes smooth transitions between groups

 Automates the VEBA process; on average 36 entries/month are processed for an annual payroll department cost of $816.48; this process maybe automated in the future state

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C. Role Definitions

The process flow diagrams reflect activities owned by roles versus people or jobs. The intention is to focus the discussion on functions instead of people. One individual can perform multiple functions. Below are sample definitions for the roles that can be used in the 14.0 Off-Cycle Payroll process flows.

The UW Payroll Office process leads and focus group members have agreed to postpone the defining of roles during time of development of this narrative document.

Role Description

UW Payroll Office This group is responsible for Payroll Processing; role to be defined.

HR Human resources department

Department Various UW Departments

Technology This is a placeholder for the future technology system Agency Any 3rd_{party organization}

D. Key Terminology

The following terminology is used throughout the 14.0 Off-Cycle Payroll processes:

Term Definition

Review

A step within a business process workflow that provides the ability to Edit, Accept, Deny or Send Back the request

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Approve

A step within a business process workflow that provides the ability to Accept, Deny or Send Back the request. No edit capability is provided to the approver

VEBA

Voluntary Employment Benefit Association – a non-taxable trust account funded by sick leave buyout at retirement for future medical expenses

E. High Level 14.0 Off-Cycle Payroll Process

The Off-Cycle Payroll processes cover 8 process flows:

• 14.0.0 Off-Cycle Payroll Process: This process covers the processes for handling standard Off-Cycle Payroll activities

• 14.0.1 Overpayments: This process covers the processes for overpayment transactions in accordance to Washington State

Legislature, RCW 49.48.210

• 14.0.2 Underpayments: This process covers the processes for handling underpayment activities

• 14.0.3 Stop Payment/Reissue Check: This process covers the processes for placing stop payment and/or the reissuing of

checks

• 14.0.3 Stop Payment/Reissue Check (Direct Deposit/Paycard): This process covers the processes for placing stop payment on

direct deposits and Paycard

• 14.0.4 Process Final Payment for Separations: This process covers the processes for handling final payment for separations

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F. 14.0.0 Off-Cycle Payroll Process Summary

Process Definition

The Off-Cycle Payroll process covers the activities completed to determine and process employee pay while using a central data source via a Technology to be determined by the UW Procurement team.

Process Flow

The 14.0.0 Off-Cycle Payroll Process Summary illustrated below shows an overview of the sub-processes that will be narrated in this document.

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Process Narrat ive

- 14.0.1 Overpayment s

The process flow illustrated below shows the step-by-step activities for processing overpayments.

DRAFT 14.0.1 Overpayments U W P a y ro ll O ff ic e A g e n c y E m p lo y e e / F o rm e r E m p lo y e e D e p a rt m e n t No No No No Yes Yes No Receive notification Receive notification of response 3 Send written review request &

overpayment options form Mail Receive signed option form?

Note 10: If more than 30 days have passed and overpayment has not been received by UW, the university can use a collection agency. EE continue to challenge? 10 Send notice to redeem overpayment Mail Proceeding in favor of EE? 7 Mail application to UW Mail 5 Send notification to EE of appeal overturn decision Mail Receive application? 1 Identify Overpayment Technology 8 Attend adjudicative proceeding as deemed by Agency Mail 4 Review employee appeal Technology 2

Mail notice with overpayment options form Mail 6 EE complete application for adjudicative proceeding Technology/Mail End Overpayment overturned? To: On-Cycle Payroll Involuntary/ Voluntary Deduction

Note - General: Applies to represented and non-represented employees. Notify EE of overpayment Appeal payment? Yes Yes No No End EE accept payment terms? 9 Send notice of impending Involuntary Deduction Mail/Technology No Yes Yes

Note: Employee has 20 days to respond to collections notification

Note - General: Bargaining contracts may change. Review of overpayment contract terms to be conducted as appropriate.

Note 4: Washington State Legislature requires notice to be mailed. Employee has 20 days to submit a request to review the overpayment.

Note: Technology to identify the employment status (active/inactive) and sends out the appropriate notification.

Yes EE agree? No Yes To: Collections Agency To: On-Cycle Payroll Involuntary/ Voluntary Deduction Note 9: Per RCW 49.48.210 – overpayment deductions not to exceed 5% of employee’s earnings per pay period.

Note 7: Application must be served on and received by UW within 28 calendar days of employee’s receipt of UW’s overpayment notification..

Note - General: Technology will need to track the status of payments and/or uncollectibles

Note - General: If no activity occurs within 1 year of collections, UW will write-off any overpayments.

Send pre-collections notification

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14.0.1 Overpayments

# Step Name Description Roles Notes

1 Identify overpayment Department identifies an employee overpayment and notifies the employee and UW Payroll Office

Department Technology to

identify the

employment status (active/inactive) and sends out the

appropriate notification. 2 Mail notice with

overpayment options form

Notify employee of the repayment options via the overpayment options form

UW Payroll Office Washington State Legislature specifies delivery methods 3 Send written review request

and overpayment options form

Employee to respond to overpayment notice in writing and complete

overpayment options form as appropriate Employee/Former Employee Washington State Legislature allow an employee 20 days to formally request an overpayment review - Receive signed option form? Did employee send signed overpayment

options form? If no, proceed to next question. If yes, proceed to On-Cycle Payroll Involuntary/Voluntary Deduction process

UW Payroll

Office/Employee/Former Employee

- Appeal payment? Did employee appeal request to appeal payment? If no, trigger pre-collections notification and proceed to On-Cycle Payroll Involuntary/Voluntary

Deduction process. If yes, proceed to step 4.

UW Payroll Office Employee has 20 days to respond to collections

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4 Review employee appeal Review employee appeal for any changes Department

- Overpayment overturned? Is the overpayment overturned? If no, proceed to step 5. If yes, end

overpayment process.

UW Payroll Office

5 Send notification to

employee of appeal overturn decision

Mail notifications to employee of appeal overturn decision

UW Payroll Office

- Employee continue to challenge

Does the employee continue to challenge the overturn decision? If no, proceed to On-Cycle Payroll Involuntary/Voluntary Deduction process. If yes, proceed to step 6.

Employee/Former employee

6 Employee complete

application for adjudicative proceeding

Employee to complete application for adjudicative proceeding

Employee/Former employee

7 Mail application to UW Employee to mail adjudicative application to UW Employee/Former employee Application must be served on and received by UW within 28 calendar days of employee’s receipt of UW’s overpayment notification. - Receive application? Did UW receive the application? If no,

proceed to step 10. If yes, proceed to step 8.

UW Payroll Office

8 Attend adjudicative proceeding as deemed by Agency

Attend adjudicative proceeding as deemed by Agency

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- Proceeding in favor of employee?

Proceeding in favor of employee? If no, proceed to next question. If yes, end process.

UW Payroll Office

- Employee accepts payment terms?

Does the employee accept the payment terms? If no, proceed to step 9. If yes, proceed to On-Cycle Payroll

Involuntary/Voluntary Deduction process.

UW Payroll

Office/Employee/Former Employee

9 Send notice of impending involuntary deduction

Send notice of impending involuntary deduction via mail and technology

UW Payroll Office Per RCW 49.48.210 – overpayment

deductions not to exceed 5% of

employee’s earnings per pay period 10 Send notice to redeem

overpayment

Mail notice to redeem overpayment UW Payroll Office If more than 30 days have passed and overpayment has not been received by UW, the university can use a collection agency.

- Employee agree? Does the employee agree to the overpayment? If no, proceed to

collections agency. If yes, proceed to On-Cycle Payroll Involuntary/Voluntary Deduction process.

Employee/Former Employee

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Process Narrat ive

- 14.0.2 Underpayment s

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14.0.2 Underpayments

1 Identify underpayment Department identifies underpayment Department

2 Investigate issue and approve underpayment

Department to investigate issue and approve underpayment. Employee is notified of the underpayment and the appropriate next steps via technology

Department

- Need for on demand payment?

Need for on demand payment? If no, proceed to On-Cycle Payroll process. If yes, proceed to step 3.

Department On demand payment

varies based on policy or situational criteria

3 Request on demand payment

Request on demand payment and send notification to UW Payroll Office of the need for an on demand payment

Department/UW Payroll Office

Request may be made via technology or email. Off-cycle payments are posted during on-cycle processing.

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Process Narrat ive

- 14.0.3 St op Payment /Reissue Check /Direct Deposit /Paycard

The process flow illustrated below shows the step-by-step activities for conducting stop payments, reissuance of check, direct deposit and Paycard.

DRAFT 14.0.3 Stop Payment / Reissue Check (Check) Pg. 1

P a y ro ll o r D e p a rt m e n t U W P a y ro ll O ff ic e E m p lo y e e 1 Notified of lost, stolen, damaged, stale checks Paper/Email End No 3 Contact bank Online 8 Instruct employee

to work with their bank to resolve Phone 11 Receive confirmation of stop payment Online 10 Request autostop from bank to Stop Payment on Check

Online

9 Investigates further with bank, if

necessary 5 Employee to verify signature In-Person/Email No Start Has check been cashed? Yes 12 Reissue payment Technology Note 1: Employee may also

be the initiator of the issue. 2 Initiate investigation Online Check issued? No Yes Fraud activity? 6 Initiate fraud process Online Yes 7 Payroll reissues check Technology

To: Off Cycle Payments

Note 6 & 7: Employee’s are reissued checks in parallel to initiation of fraud process.

Notify employee/ dept that check was not issued

4 Employee/Dept to research issue further, if desired Online End Notify employee check cashed Agree? No Yes

Note 5: This step is only completed if requested by the employee.

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14.0.3 Stop Payment/Reissue Check

1 Notified of lost, stolen, damaged, stale checks

Notified of lost, stolen, damaged, stale checks

UW Payroll Office or Department

Employee may also be the initiator of the issue

2 Initiate investigation Initiate investigation online UW Payroll Office or Department

- Check issued? Was the check issued? If no, notify employee and department that the check was not cashed and proceed to step 4. If yes, proceed to step 3.

3 Contact bank Contact bank to verify if the check was cashed

UW Payroll Office

- Has check been cashed? Has check been cashed? If no, proceed to process 10. If yes, notify employee that the check was cashed and proceed to next question.

UW Payroll Office

- Agree? Does the employee agree? If no, proceed

to step 5. If yes, end process.

Employee

4 Employee/Department to research issue further, if desired

Employee/Department to research issue further, if desired.

5 Employee to verify signature

Employee to verify signature in-person Employee/UW Payroll Office

This step is only completed if requested by the employee.

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- Fraud activity? Employee and UW Payroll to determine if this is a fraud activity. If no, proceed to process step 8. If yes, proceed to process step 6.

UW Payroll Office or Department and Employee

6 Initiate fraud process Initiate fraud process UW Payroll Office or Department

Employee’s are reissued checks in parallel to initiation of fraud process 7 Payroll reissues check Payroll reissues check UW Payroll Office Employees are

reissued checks in parallel to initiation of fraud process 8 Work with bank to resolve

non-fraudulent activity

Instruct employee to work with their bank to resolve

Employee

9 Investigates further with bank, if necessary

Investigates further with bank, if necessary

Employee

10 Request autostop from bank to Stop Payment on Check

Request autostop from bank to Stop Payment on Check

UW Payroll Office

11 Receive confirmation of stop payment

Receive confirmation of stop payment UW Payroll Office

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14.0.3 Stop Payment/Reissue Check (Direct Deposit/Paycard)

1a Receive notification from employee of direct

deposit/Paycard payment not received

Receive notification from employee of direct deposit/Paycard payment not received

Department, Employee, UW Payroll Office

If notification is received on or before payday, but after payroll is processed, go to Step 9 – Submit Reversal Request to Bank. If notification received after

payday, then need to wait for funds return or confirmation from bank that funds are coming back. Then go to step 10. 1b Employee paid incorrectly

(overpayment/deduction error)

Employee paid incorrectly (overpayment/deduction error)

If notification is received on or before payday, but after payroll is processed, go to Step 9 – Submit Reversal Request to Bank. If notification received after

payday, then need to wait for funds return or confirmation from bank that funds are coming back. Then go to step 11.

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1c Receive direct deposit rejection from bank

Receive direct deposit rejection from bank

UW Payroll Office Rejection may be caused by incorrect or closed bank account information - Should employee be paid? Should employee be paid? If no, notify

employee of incorrect payment and proceed to next question. If yes, proceed to step 3.

- Pull direct deposit? Should the direct deposit be pulled? If no, proceed to Overpayment process. If yes, proceed to next question.

UW Payroll Office

- Can direct deposit be pulled prior to payday cutoff?

Can direct deposit be pulled prior to payday cutoff? If no, notify employee of payment error/deduction and proceed to Overpayment process. If yes, notify employee of payment error/deduction and proceed to step 9.

UW Payroll Office

2 Cancel direct deposit info and send notification to employee of cancellation

Cancel direct deposit info and department sends notification to employee of cancellation

UW Payroll Office, Department 3 Department/Payroll verifies

payment amount

Department/Payroll verifies payment amount via technology

UW Payroll Office

4 If employee paid incorrectly, verify payment with bank

If employee was paid incorrectly, verify payment with bank

UW Payroll Office

- Direct deposit? Was employee paid via direct deposit? If no, proceed to step 6. If no, proceed to step 5.

UW Payroll Office

5 Verify employee’s direct deposit information

Verify employee’s direct deposit information

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- Direct deposit account closed/incorrect?

Direct deposit account closed/incorrect? If no, notify employee of payment error/deduction and proceed to Overpayment process. If yes, notify employee of payment error/deduction and proceed to step 9.

UW Payroll Office

6 Payroll to make corrections via Paycard process

Payroll to make corrections via Paycard process and notifies employee of

corrections via technology

UW Payroll Office

7 Instruct employee to update direct deposit account information

Instruct employee to update direct deposit account information

UW Payroll Office

8 Instruct employee to work with bank to resolve the issue

Instruct employee to work with bank to resolve the issue

UW Payroll Office

9 Submit reversal/stop payment request to bank

Submit reversal/stop payment request to bank

UW Payroll Office

10 Cancellation of original check

Process cancellation of original check UW Payroll Office

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Process Narrat ive

- 14.0.4 Process Final Payment for Separat ions

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14.0.4 Process Final Payment for Separations

1 Notified of employee separation

Notified of employee separation via technology

HR/Department Separation includes death in services and retirement

2 Initiate calculate final payment

Initiate calculation of final payment via technology. Integrates with technology and time and attendance to obtain final PTO payment

UW Payroll

Office/Technology

Final payment payout includes: vacation, comp time, overpayments, etc. - Requires immediate check? Does this payment require an immediate

check? If no, proceed to step 7. If yes, proceed to step 3.

UW Payroll Office

3 Generate check Generate check UW Payroll Office Employee may not be

paid in advance of the pay period end date. Technology requirement: automatically

calculate payout. I.e. if payout is greater than overpayment, the final payment will be automatically generated.

4 Hold check for pick up by Department or HR

Hold check for pick up by Department or HR

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5 Provide check to the employee

Provide check to the employee HR/Department Separations to verify employee data, such as W-2, address, etc. 6 Change employee status to

Separated

Change employee status to Separated HR/Department

7 Receive final payment via regular payroll cycle

Receive final payment via regular payroll cycle

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Process Narrat ive

- 14.0.5 Run Off -Cycle Payroll

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14.0.5 Run Off-Cycle Payroll

1 Select to perform: - Manual payment, On demand payment, Paycard/direct deposit

Select to perform: - Manual payment, On demand payment, Paycard/direct deposit

UW Payroll Office

2 Select pay period date Select pay period date UW Payroll Office

3 Select the employee(s) Select the employee(s) UW Payroll Office

4 Define the payment to be processed

Define the payment to be processed UW Payroll Office Define the payment as: Manual =

Employee is not paid; Additional (On Demand) = Payment to the employee in addition to the employee’s on-cycle earnings; Replacement (On Demand) = Replacement of the employee’s on-cycle payment

5 Enter payment details and values

Enter payment details and values UW Payroll Office Includes payment date, payment value, additional taxation,

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comments, etc.

6 Load payment data into batch

Load payment data into batch UW Payroll Office

7 Upload positive pay Upload positive pay UW Payroll Office

8 Review uploaded data to ensure it is ready to process

Review uploaded data to ensure it is ready to process

UW Payroll Office

9 Select to process off cycle payroll

Select to process off cycle payroll UW Payroll Office

10 Calculate Payroll (preview) Technology to run a preview calculation of payroll

Technology

- Is immediate payment I required?

Is immediate payment required? If no, to proceed to On-Cycle Payroll process. If yes, proceed to On-Cycle Payroll – Post Pay Tasks process.

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G. Key Performance Indicators

The following are some of the key performance indicators used to track and measure efficiency and metrics based on current state.

Current KPI Type Description/Formula Comments Target

# of hand drawn checks processed

Count and estimated costs Hand drawn checks processed Decrease by 80%/month # of Overpayments Count and reason for the

overpayment Number of overpayments by month Decrease by 90%/month # of late payments processed by batch

Count and estimated costs Number of retro pay batches processed (RA and ETR/PTR excluding separations)

Decrease by 90%/month

Recommended KPI Description/Formula Comments Target

Payroll error rate Error processes/total number processes

Less than 1% Timeliness Total time taken to close Payroll /

target time to close payroll

Time taken to complete payroll run related activities on the Payroll Close Day

24 hour turnaround Manual Adjustment

Accuracy

Number of data entry errors made by processors / total number of checks calculated in a pay period

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H. Current Metrics

The following are some of the key metrics used in the current state.

Metric Metric Description Measurement

Average number of hours spent in processing off-cycle – batch transactions

Cumulative calculation of time spent processing off-cycle – batch payments

208/month

Average number of hours spent on processing handdrawn checks

Cumulative calculation of time spent processing handdrawn checks

104/month Average number of hours spent

addressing and processing stop payments/reissuance of checks

Time spent addressing stop

payment/reissuance of paper check

4 hours/month

Average time spent on stop

payments/reissuance of direct deposits

Time spent on stop payments/reissuance of direct deposits

2 hours/month Average involuntary deductions Amount of time spent calculating and

processing involuntary deductions

85 hours/month Average voluntary deductions Amount of time spent calculating and

processing voluntary deductions

20 hours/month Average direct deposit returns and

notification of changes (NOC)

Amount of time spent on addressing direct deposit returns and NOCs

3-4 hours/month Average distribution of checks (payroll) Time spent on distribution of checks 14-15 hours/month Average cost to process overpayments The average cost to process an overpayment $111.87 per O/P Average customer Service Time spent on customer service activities 4 FTEs/month Average number of Off-Cycle checks

processed in 2011

Checks that were developed for various reasons ranging from reissue of checks, earn type change, garnishments, late ETR/PTR, Late PERM, relocation incentive pay, etc.

3308 checks

Average hand drawn checks (average from 2010, 2011, 2012 (Jan-Oct))

Number of hand drawn checks processed 2010 = 4207 checks, Event: Increase of damaged checks; awards processed; 2011 = 3308 checks, Event: Increase of

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cancel/reissue checks due to clean-up of stale checks process; no awards processed; 2012 (Jan – Oct) = 2910 checks, Event: Award payments come back

Average time spent for hand drawn checks (departments)

Time spent for processing hand drawn checks by departments

15 mins/request Batch transactions (retro-pay) Number of retro-pay batch transactions

processed (RA, ETR/PTR, excludes separations)

2328/month

Time spent for batch transactions (retro-pay)

Estimated time for Payroll Coordinator to process batch transactions

15 mins/retro request

*Note: See Appendix P and Q for details on Overpayment and Retro Pay metrics, respectively.

I. Interfaces/Data Dependencies

Points of interaction across systems to promote data/information transfer between systems, work streams or third parties. Process Flow Name Systems Interfaces/ Data

Dependencies

Retire

System? (Y/N)

Comments

General OWLS Yes Leave accruals

General Time reporting Yes Time collection

General Timesheets Yes Time collection

General OPUS Yes Employee

data/appointments, pay history, etc.

General HEPPS Yes Employee

data/appointments, pay history, etc.

General VEBA Yes Tracking system

General Hand-drawn database Yes Tracking system

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General Overpayment Database Yes Status, payment arrangements, amount due, etc.

General Student Database No

General Budget Database No

General Financial Index (FIN) No

General Bottomline Maybe Software to print checks

on site; could be replaced with technology

General Financial Accounting

System (FAS)

No Settlements and refunds

J. Integrations

Process interdependencies, handoffs or “touch points” to be considered with other work streams or third parties.

Process Flow Name Inputs - From Outputs - To Comments

Time Keeping Time report from

departments

Payment election (direct

deposit/Paycard)

Underpayments

Underpayment Check processing Paper checks/positive

pay file (could be direct deposit or paper in the future)

Bottomline software

Underpayment Email/Paper Notifications from

departments

Underpayment Deductions

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14.0.1 Overpayments 14.0.1 Overpayments – Collections Agency List of placements to Collection Agency (can be in excel spreadsheet format or paper placement) Department Department – Notification of O/P (paper) Paperwork to set up O/P in Overpayment database and payroll system; repayment form required by the state

Employee Employee Option

Form (repayment plan)

Deduction from employee’s earnings to repay O/P

Separations Request for Net Calc Net Calc for O/P repayment

When an O/P is discovered for a separated employee there is no option for payroll deduction to repay O/P

14.0.3 Stop Payment/Reissue Check

Report from Bank Bank stop payment request

Police Report if fraud

Payment to employee 14.0.3 Stop Payment/Reissue Direct

Deposit

Rejection Report from Bank (on-line through bank)

Payment to employee; notification to

Replacements are usually by paper check

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employee 14.0.4 Process Final Payment for

Separations

Department

separates employee

Payment to employee Yearend Tax Forms 14.0.5 Run Off-Cycle Payroll

ESS Address update

Payment to employee Validation Report

K. Rules, Regulations, Policies and Laws

List of key rules, regulations, policies and laws that are factored into the process flows.

Process Flow Name Rules, Regulations, Policies, and Laws Comments

General OFM – Section 25

Overpayments RCW 49.48.210

General IRS Regulations

Overpayments SAAM Chapter 25.80

General RCW 42.16 Salaries and fees

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L. Process Deviations

List of all processes that deviate from the standard and reasons for the deviation.

Process Flow Name Type of Deviation Justification

None

M. Unresolved Decision Points

All open issues and unresolved decision points identified during the Business Process Review Design are tracked and listed below. Unresolved Decision Points

Process Flow Name Issue/Decision Description Owner Actions & Timeframe

General – printing checks Where will checks be printed? Cindy Gregovich

Technology driven decision

14.0.3 Stop Payment/Reissue Check (Direct Deposit/Paycard)

Policy decision – should UW Payroll be allowed to pull back direct deposits in the future state?

Cindy Gregovich

14.0.3 Stop Payment/Reissue Check (Direct Deposit/Paycard)

If there is an increase in the frequency for processing off-cycle, does that increase for deposits?

Cindy Gregovich

General – Deductions/Contributions Do we want to process Off-Cycle

deductions/contributions during next On-Cycle or in real time?

Cindy Gregovich

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N. Change Impact of Moving to Future State

Change To Current Process

Impact (High, Med, Low) Type of Impact (Process, Org, Tech) Impact Description Current New

Overpayments via leave type creates retirement benefits issues

Benefits to establish protocols in technology

Low Process Improves issues with retirement benefits

Overpayment deductions are calculated manually

Technology to automatically calculate deductions

High Process Eliminates deductions issues (removes 100 deductions each pay period and 100

overpayments/month) Lack of an integrated leave

tracking system and a time reporting system

Increased technology integration between systems

High Technology Decreases 90% of overpayment issues

Off-cycle checks are manually calculated

Technology to automatically calculate checks

High Process Alleviates 3 FTEs to focus on other activities

Manual data entry process for VEBA

Technology to automate Low Process Alleviates non-value add activities Employee perceives Payroll

Coordinators error

Technology to reduce error rate and provides transparency to the transaction

High Process People impact with improved processing times and increased transparency

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O. Narrative Acceptance

Via Email 11/13/2012 Via Email 11/16/2012

Cindy Gregovich BPR #14.0 Review Team Via Email Date 11/19/2012 Farida Ablang BPR #14.0 Review Team Via Email Date 11/15/2012 Ginny Montgomery BPR #14.0 Review Team

Date Heather Norberg Stewart

BPR #14.0 Review Team

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P. Appendix: Overpayment Metric

Task Metric Description

Metric (per month)

FTE % for Payroll Staff (three

full-time FTE)

Est. Time for

Payroll Coordinator Notes

Payroll Cost (Monthly) Payroll (Annual) Department Cost (Monthly) Department Cost (Annual) Overpa yments Number of Overpa yment proces s ed (Centra l Pa yrol l Cos ts ); veri fi ca tions a nd da ta entry 96 1.00 Accountant 1 (50%) a nd Accountant 2 (50%) - veri fi es a ccura cy of forms , ma i ntai n da taba s e, proces s es pa yments , i nqui res ,

a nd l etters /col l ections $ 4,868.00 $ 58,416.00 Overpa yments Overpa yments prepa red by depa rtments 96 120 mi nutes per overpa yment Prepa re pa perwork, notify empl oyee, forwa rd pa perwork to

Pa yrol l $ 5,871.36 $ 70,456.32

Total: $ 4,868.00 $ 58,416.00 $ 5,871.36 $ 70,456.32

*Pa yrol l cos t ba s ed on 2 FTE (50%): Account I a nd Accountant II (i ncl udes budgeted s a l a ry a nd benefi t ra te of 34%)

*Depa rtment cos t a re budgeted us i ng the s a l a ry of a Budget/Fi s ca l Ana l ys t (i ncl ude budgeted s a l a ry a nd benefi t ra te of 34%) - es tima te of time woul d requi re a s urvey to Pa yrol l Coordi na tor to confi rm time es tima te

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14.0 Off Cycle Payroll Narrative HR & Payroll Business Process Redesign (BPR)