Attachment S - Payroll End-to-End Processing Requirements

(1)

Out of the Box Configurable Required Requirement

1 Ability to receive files through interfaces from external sources. File types include at a minimum payment requisition files, employee tax updates, benefits deductions, retirement status and codes, and court ordered garnishments 2

Ability to transmit files through interfaces to external Users. File types include at a minimum salary and deductions detail, benefits deductions processed, retirement contributions processed, payroll register, tax reporting, and court ordered garnishments

3 Ability to process multiple types of payrolls at varying frequencies (e.g., Monthly, Bi-weekly, Daily On-Demand, Awards) 4 Ability to process State Active Duty payroll requisition file from the Department of Military Affairs that includes

predetermined earnings and deduction amounts (including tax deduction amounts) used to calculate gross to net pay 5 Supports quality control pre-edit control points that pauses payroll processing prior to and during the processing of

payrolls and allows for restart if required

6 Ability to perform all payment calculations individually and in aggregate for gross salary charge to net pay for each pay requisition

7

Ability to generate entries and post payrolls to multiple accounting periods based on values present in the payroll or pay record. For example, when bi-weekly payroll period crosses months, the payment is made in the latter month, and accounting for the expenditure (cost) is split and posted to both months, or leave payout is processed and paid in the month following separation (subsequent accounting period) but the accounting for the expenditure (cost) is recorded in the month of separation

8

Ability to perform pay calculations based on unlimited earnings types (earnings codes) that contain attributes used to apply processing rules for the administration of applicable benefits and deductions (e.g., regular wages, lead worker, shift differential). These earnings codes are used globally and may be limited to specific agencies

9 Ability to calculate and record unlimited employer charges (e.g., retirement contributions, insurance contributions, and taxes) to the employee's record based on earnings code attributes

10

Ability to calculate and record unlimited employee deductions (e.g., retirement, insurance, taxes, child support and personal deductions) to the employee's record based on earnings code attributes, W-4 record, Pre-Tax Benefit (PTB) Insurance selection and employee selection

11 Ability to provide effective dating for payroll changes (e.g., Federal and state tax rates, legislative changes, benefits)

I. Requirements

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Ability to use accounting shortcut entry fields defaults based on agency input of various accounting entries. Agencies can configure the accounting system to create substitute entries to populate the entire account code entry. The minimum fields required for this substitute entry are:

• Organizational code (ORG CODE/ORG) (A11) • Object code (Object/OBJ) (A6) • Expansion Option (EO) (A2) • Expansion Option Version (VR) (A2)

Agencies can then add individual fields to this entry to modify the configured accounting entry

See FLAIR Procedures Manual, Section 112, Expansion Files: http://www.myfloridacfo.com/Division/AA/Manuals/ Ability to account for payroll activity using all elements of the State’s Chart of Accounts, including:

• Operating Level Organization (OLO) (A6) • GAAFR Fund (GF/GF_CD) (A2) • State Fund (SF/SF_CD) (A1) • Fund Identifier (FID) (A6) • Budget Entity (BE/BE_CD) (A6) • Internal Budget Indicator (IBI) (A2) • Category (CAT) (A6)

• Year (YR/APPR_YR) (A2)

• General Ledger Code (GLC/GL_CD) (A5) • Object code (Object/OBJ) (A6) • Organizational code (ORG CODE/ORG) (A11) • State program identifiers (STATE PROG/SP) (A16) • Product identifiers (Product/PROD) (A3) • Other Cost Accumulator (OCA) (A5) • External Category (ECAT/CAT_EXT) (A6) • External Fund (EF/FUND_EXT) (A1) • External General Ledger (EGL/GL_EXT) (A3) • External Object Code (EOB/OBJ_EXT) (A3) • External Program (EP/PROGRAM_EXT) (A2) • Agency unique codes (AU/AU_CD) (A2) • Grant codes (GRANT/GRANT_ID) (A5) • Grant Year (GRANT_YR) (A2)

• Contract codes (CONTRACT/CNTRT/CONTRACT_NBR) (A5) • Contract Year (CONTRACT_YR) (A2)

• Project identifiers (PROJECT ID) (A11) • Certified forward indicator (CF/CFI) (A1)

See FLAIR Procedures Manual, Section 109, Master Data Codes: http://www.myfloridacfo.com/Division/AA/Manuals/ 12

(3)

Out of the Box Configurable Required Requirement 14

Ability to apply rules to prevent negative net pay using a deduction code drop prioritization that complies with the Consumer Credit Protection Act (CCPA). More information on deduction code drop prioritization can be found in BOSP Payroll Preparation Manual, Volume IV, Section 1: http://www.myfloridacfo.com/Division/AA/Manuals/

15 Ability to perform payroll processing simulations to allow for results checking prior to actual run 16 Ability to prorate benefit contributions when applicable, (e.g., part-time employee) 17 Ability to maintain descriptions of employee earning, benefits, and deduction types 18 Ability to compute and adjust pre and post-tax deductions

19 Ability to create, maintain and administer miscellaneous payroll deduction codes 20 Ability to compute gross-up payments to achieve required net pay

21 Ability for authorized personnel to configure and manage workflows

22 Ability to input and approve individual payroll requisitions to process specific employee payments 23

Ability to systematically manage garnishment, IRS levy, or similar collection of indebtedness process from receipt of notice from competent authority through pay deduction and disposition to completion. This would include but not be restricted to prioritization and proportionate distribution involving multiple orders, deductions rules vary by earnings type, and Consumer Credit Protection Act limitations

24

Ability to combine and compute employee earnings and deductions that change during a pay period resulting in more than one pay requisition. This may include employees that change positions resulting in different rates of pay, earnings types (e.g., regular wages, overtime, leave payouts), different agencies, pay cycles (Bi-Weekly, Monthly), or multiple appropriation accounts

25

Ability to combine, compute, and process earnings and deductions for employees with recurring multiple payment requisitions. This situation is typically caused when an employee is employed part-time in multiple positions (same or different agency); the position is co-located and is funded from more than one appropriation

26

Ability to administratively lock employee records to prevent the employee from receiving regular wage payments or non-recurring payments (e.g., employees under investigation who should not receive bonuses, leave payouts, overtime) until the record is unlocked

27Supports online functionality for agencies to cancel payroll warrants/direct deposit payments based on pre-defined timing rules which result in employee record to be updated

28

Ability to generate appropriate accounting journal voucher for posting to the state’s accounting system when a payroll warrant/direct deposit payment is cancelled. The accounting transaction will change based on timing of payment and cancellation. See BOSP Payroll Preparation Manual Vol V Section 5:

http://www.myfloridacfo.com/Division/AA/Manuals/

29Includes online capability for staff to input (upload/import) and authorize payroll actions based on Users security role code

30Ability to control frequency and timing of deductions and to specify number of pay periods for a particular deduction to be withheld

31Ability to systematically establish, adjust, and publish payroll calendars. The calendar identifies payroll processing dates, direct deposit cancellation deadlines, pay dates, tax deposit and settlement dates, etc.

32 Ability to make corrections to any pay or collections record

(4)

Ability to add additional information at the conclusion of payroll processing to applicable employee pay records. These include at a minimum payroll period dates, warrant numbers, warrant dates, voucher numbers, voucher dates and statewide document numbers for employees, deduction vendors, and collections recipients

35Supports submitting completed Warrant/direct deposit payroll file and accounting entries file to the state’s accounting system for posting and payment execution

36Ability to generate positive pay issuance file for State Treasurer's use from payments created through payrolls or tax payments processed

37

Supports Employee Self Service that includes the ability to view online and print the following types of information: • W-2, W-2c forms

• Form 1099-Misc • Earnings Statements

• Annual Earning and Benefits Statements

• Non-Payroll Payments From State’s Financial System (e.g., travel and medical reimbursements)

38

Ability to report the following payment summary information for each employee's payment record - Employee ID / Social Security Number, Name, and Calendar Year To Date Totals for:

• Gross Salary Charge • Reportable Gross • Gross Salary • Net Pay

• Each applicable Earning Code

• Position Attributes (e.g., Position number, pay plan, class code) • Retirement Attributes (e.g., Code, Plan)

• Taxation Attributes, (e.g., W-4, filing status, address, birth date, W-4 type) • Benefit Codes and Employer Costs and Amounts

• Each applicable Deduction Code and Amounts • Organization and Accounting for most recent Payment Employee Records - Payroll Requirements Capabilities

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Ability to record from the state's accounting system and report the following payment detail information for each employee's payment record for each pay cycle:

• Employee ID / Social Security Number, Name • Warrant Date

• Warrant Number • Pay Period Dates • Pay Cycle

• Requisition Source (Refer to requirement 1) • Gross Pay

• Reportable Gross • Net Pay

• Each applicable Earning Code

• Position Attributes (e.g., Position number, pay plan, class code) • Retirement Attributes (e.g., Code, Plan)

• Taxation Attributes, (e.g., W-4, filing status, address, birth date, W-4 type) • Benefit Codes and Employer Costs and amounts

• Each applicable Deduction Code and amounts

• Organization, Physical Location, and Accounting Information 40

Ability to account for non-payroll related tax reportable earnings (e.g., moving expenses, perquisites, taxable gifts). The state’s accounting system will transmit applicable transactions. Selected Users must have the ability to record missing transactions or modify incorrect transactions recorded on the employee's record

41Ability to validate, (concurrent or post-audit) track, and report changes made to employee pay based on defined parameters (e.g., bonus, longevity pay increase, appropriated pay change) between identified processed payrolls 42Ability to flag an employee that has an outstanding salary overpayment. The overpayment (debt) and collection activity

must be transmitted between the state’s accounting system and the payroll system

43Ability for staff to report (download / export) or inquire on employee records. Access to data should be controlled by authorized personnel

44Ability to create and maintain an unlimited number of deduction codes (employee and employer) and earnings codes with corresponding attributes in a table for the calculation of gross salary charge to net pay

45 Ability to maintain email addresses for employees who register for access to the employee self-service portal 46Ability for employees to elect electronic receipt of Form W-2 through the employee self-service portal; notify by email

these employees when forms are available

47 Supports tax deferral limit monitoring edits and reporting activity. ( e.g., IRC 457(b) Deferred Compensation) 48Ability for authorized personnel to record and update employee records upon the receipt of refunds, salary

overpayments, and other adjustments

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49

Ability to generate reports to validate, monitor and complete required payroll activities: • Identifying payroll errors as they are encountered

• Detailing collections recipient payments • Alerting staff to date specific garnishment orders • Identifying cancelled and adjusted payments • Identifying payments that require special handling • Performing research and reconciliation

• Assisting with tax preparation and federal/state reporting • Controlling system access by function/staff

• Producing usage reports for various codes (e.g. earnings, deductions) utilized

See BOSP Payroll Preparation Manual, Volume IV, Section 8; Volume V, Section 4; Volume VI, Section 6; http://www.myfloridacfo.com/Division/AA/Manuals/

50Ability to generate required tax forms using IRS prescribed formats. At a minimum these include Forms W-2, W-2c, 1099-M, 941, 941-X

51 Ability to file tax documents (e.g., W-2, W-2c, 1099-M, 941, 941-X) by the reporting deadlines

52 Ability to mass print and mail tax forms for those employees that do not elect to receive forms electronically 53Ability to electronically request and produce W-2c and duplicate W-2 forms for delivery to the employee based on their

preferred distribution choice (paper or electronic)

54 Ability to manage version control of tax-forms posted online to ensure appropriate records are available for access

55

Ability to update employee records for refunds or corrections of Pre-Tax Benefits or after-tax events, generate appropriate payment or adjustment, and generate accounting entries when applicable. For example, incorrect retirement code used, original transaction was not taxed and refund is taxable, over or underpayment of employer contributions

56

Ability for authorized personnel to report using various elements of the employee records (e.g., by agency leave payouts, overtime incurred in program area, aggregate employer retirement / health insurance contributions) and over various periods

57

Ability to provide enterprise and agency forecasting for authorized personnel using various elements of the employee records, and HR system (e.g., years of service, retirement eligibility date). For example, pro forma funding change if retirement contributions changed

58 Ability for Users to search on various elements in the employee record 59 Supports robust User acceptance testing and sandbox environments 60 Supports single sign-on with other applications

61 Supports payroll system changes mandated by law

62Supports security access and functionality controls (add, update, inquire, or not available) for all payroll related systems and functions

63Ability to maintain functionality controls (add, update, inquire, or not available) at Agency level or individually at User-ID level

64Provide transmission of output data files by secure delivery to the state’s accounting system, agencies, state benefits managers, deduction payees of payroll activities

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