© ERC, 2015 | www.yourERC.com 0
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2015
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5 ERC
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ERC
ERC Payroll
ERC
Payroll
Payroll
Payroll
Practices Survey
Practices Survey
Practices Survey
Practices Survey
December
December
December
December 201
201
2015
201
5
5
5
Conducted by ERC
Conducted by ERC
Conducted by ERC
Conducted by ERC
387 Golf View Lane, Suite 100 Highland Heights, OH 44143 440-684-9700 | www.yourERC.com
© ERC, 2015 | www.yourERC.com 1
Terms of Use
Terms of Use
Terms of Use
Terms of Use
Copyright © 2015. All rights reserved. No part of this survey may be publically displayed, reproduced, redistributed or resold to third-parties, or otherwise commercially exploited, without prior written permission from ERC. Violation of these terms may result in termination of membership and/or legal action.
The information contained in this report is for informational purposes only and should not be relied upon or considered a substitute for professional or legal advice. ERC will not be responsible for any loss to you or any third party resulting from any decision or action taken in reliance of this information. ERC recommends that you consult your legal counsel regarding workplace matters if and when appropriate.
If litigation is brought upon your firm for copyright infringements or violation of these terms of use, your organization will assume ALL legal expenses incurred on behalf of ERC and, if a member of ERC, your membership with ERC will be suspended pending the outcome of the litigation.
Notice to HR Service Providers Notice to HR Service Providers Notice to HR Service Providers
Notice to HR Service Providers (including, but not limited to: Staffing Firms, Consultants, Brokers and Law Firms) – Information from ERC may not be used for your organization's financial gain. This includes directly/indirectly sharing or disseminating ERC survey information for the benefit of your clients. Violators will be prosecuted to the fullest extent of the law.
© ERC, 2015 | www.yourERC.com 2
Table of Contents
Table of Contents
Table of Contents
Table of Contents
About Us
About Us
About Us
About Us
3
3
3
3
Introd
Introd
Introd
Introduction & Methodology
uction & Methodology
uction & Methodology
uction & Methodology
4
4
4
4
Key Findings
Key Findings
Key Findings
Key Findings
4
4
4
4
Payroll Administration
Payroll Administration
Payroll Administration
Payroll Administration
5
5
5
5
Pay Practices
Pay Practices
Pay Practices
Pay Practices
8
8
8
8
Payment Methods
Payment Methods
Payment Methods
Payment Methods
9
9
9
9
Res
Res
Res
Respondent Demographics
pondent Demographics
pondent Demographics
pondent Demographics
11110
0
0
0
Particip
Particip
Particip
© ERC, 2015 | www.yourERC.com 3
About Us
About Us
About Us
About Us
ERC is Northeast Ohio's largest organization dedicated to HR and workplace programs, practices, training and consulting. ERC membership provides employers
access to an incredible amount of information, expertise, and cost savings that supports the attraction, retention, and development of great employees. We also host the nationally recognized NorthCoast 99 program and sponsor the ERC Health insurance program. For more information about ERC, please visit www.yourERC.com.
© ERC, 2015 | www.yourERC.com 4
Introduction & Methodology
Introduction & Methodology
Introduction & Methodology
Introduction & Methodology
This report summarizes the results of ERC’s survey of organizations in Northeast Ohio, conducted in September & October 2015, exploring their payroll practices on topics including payroll administration, departments responsible for payroll processing, types of paycheck stubs used, payroll systems, pay practices for exempt and non-exempt employees, frequency of pay, and issues involving direct deposit.
All ERC members were invited to participate in the survey starting on September 22, 2015 via email invitation and other promotions, and participated in the survey throughout the next month. The survey officially closed on October 23, 2015. In order to provide the most reliable and accurate information, data was cleaned and duplicate records were removed. Any outliers or invalid data were also eliminated, yielding a final data set of 145 participating organizations. Qualitative data was coded where applicable or analyzed according to commonality or major themes, and all quantitative data was analyzed using statistical software to ensure data validity and reliability.
This report shows several frequencies and response distributions. Frequencies of data responses may not total 100% exactly in some cases due to rounding of decimals or the ability for participating organizations to select multiple response options. In some cases, breakouts are not included due to quantity of data or insufficient sample.
Key Findings
Key Findings
Key Findings
Key Findings
• Human Resource and Accounting departments most commonly handle the processing of payroll at local employers.
• A definite trend towards electronic paystubs, either exclusively or as an option along with a paper paystub, has become much stronger since the survey was last conducted in 2013.
• In total 28 unique payroll providers are cited by respondents, but ADP, Paychex and Paycor are used the most commonly.
• Most employers pay both non-exempt and exempt employees with the same frequency – usually on a bi-weekly schedule.
• About half of employers now require employees to have direct deposit, but just under two-thirds still offer paper checks as an option as needed.
© ERC, 2015 | www.yourERC.com 5 35% 35% 35% 35% 46% 46% 46% 46% 1% 1% 1% 1% 8%8%8%8% 4% 4%4% 4% 5%5%5%5% Accounting Human Resources Operations Payroll Finance Other Dept(s)
Payroll Administration
Payroll Administration
Payroll Administration
Payroll Administration
Most organizations’ HR or Accounting departments handle the processing of payroll. Forty-six percent of respondents report that their HR department is responsible for payroll processing and 35% of respondents said their Accounting department handles payroll. Other departments cited as responsible for payroll by respondents include a combination of either HR and Accounting departments, an entirely outsourced entity, or an individual employee, typically the Office Manager, who is tasked with HR type duties among others.
Figure 1 Figure 1 Figure 1
Figure 1 | | | | What departmWhat departmWhat departmWhat department handles the processing of payroll at your company?ent handles the processing of payroll at your company?ent handles the processing of payroll at your company?ent handles the processing of payroll at your company?
AccountingAccountingAccountingAccounting Human Human Human Human Resources ResourcesResources
Resources OperationsOperationsOperationsOperations PayrollPayrollPayrollPayroll FinanceFinanceFinanceFinance
Other Other Other Other Dept Dept Dept Dept(s)(s)(s)(s) Industry Industry Industry Industry Manufacturing 36% 51% 0% 7% 4% 2% Non-Manufacturing 33% 45% 2% 8% 4% 8% Non-Profit 40% 27% 7% 13% 7% 7% Organizational size Organizational size Organizational size Organizational size 1-50 57% 20% 6% 3% 0% 14% 51-200 35% 52% 0% 7% 3% 3% 201-500 21% 66% 0% 10% 3% 0% Over 500 8% 42% 0% 25% 25% 0% Other department(s): Other department(s): Other department(s):
Other department(s): Outsourced to Paytime; Accounting and HR; Office Manager; Payroll is outsourced; Outsourced Accounting Firm; Office Manager; The Office Manager who takes care of the Payroll, HR, Accounting, Finance
© ERC, 2015 | www.yourERC.com 6 46% 46% 46% 46% 27% 27%27% 27% 28% 28%28% 28% Electronic Paper Both
A significant shift towards electronic pay stubs and away from paper stubs can be seen below. More organizations are choosing to use both types of stubs as well (28%). Manufacturing organizations and smaller organizations with 50 or fewer employees tend to use exclusively paper paystubs more often than the larger, non-manufacturing organizations in the sample – but even these numbers are falling over time when compared to past surveys
Figure 2 Figure 2 Figure 2
Figure 2 | | | | What type of paycheck stub does your organization use?What type of paycheck stub does your organization use?What type of paycheck stub does your organization use? What type of paycheck stub does your organization use?
ElectronicElectronic ElectronicElectronic PaperPaper PaperPaper BothBoth BothBoth
Industry Industry Industry Industry Manufacturing 35% 33% 32% Non-Manufacturing 57% 22% 20% Non-Profit 67% 7% 27% Organizational size Organizational size Organizational size Organizational size 1-50 43% 34% 23% 51-200 45% 26% 29% 201-500 41% 24% 34% Over 500 67% 17% 17%
© ERC, 2015 | www.yourERC.com 7 Most respondents use one of three payroll systems – ADP (31%), Paycor (15%), or Paychex (15%). Overall, respondents reported using 28 different payroll systems.
Figure 3 | What payroll system do you currently use? Figure 3 | What payroll system do you currently use? Figure 3 | What payroll system do you currently use? Figure 3 | What payroll system do you currently use?
Other payroll system Other payroll system Other payroll system
Other payroll systems (n=1): s (n=1): s (n=1): Accurate Data; Banner; Ceridian; CPI-HR; ECCA's Ready Pay; G&A; s (n=1): Group Management Services; Heartland Payroll Systems; I Force; Kronos; Passport; PrimePay; ProPayroll; Spectrum; Vantage; Viewpoint
1% 1% 2% 2% 2% 3% 4% 4% 6% 15% 15% 31% 0% 5% 10% 15% 20% 25% 30% 35% CBIZ Paycom QuickBooks Sage UltiPro In house Ahola PayTime Paylocity Paychex Paycor ADP
© ERC, 2015 | www.yourERC.com 8 86% 86% 86% 86% 6% 6% 6% 6% 2% 2% 2% 2% 5% 5%5% 5% Pay as usual
Divide by 27 and adjust benefit deductions Pay twice a month instead Other
Pay Practices
Pay Practices
Pay Practices
Pay Practices
The vast majority of employers pay both their non-exempt and exempt employees with the same frequency, most commonly this is on a bi-weekly schedule. The second most common frequency for paying both employee types is twice a month (17%). In cases where the employee types are paid with a different frequency, non-exempt employees are most commonly paid weekly (17%) and exempt employees are most commonly paid bi-weekly (9%)
Figure Figure Figure
Figure 444 | 4| | | How often do you payHow often do you payHow often do you pay the following employees (nonHow often do you paythe following employees (nonthe following employees (nonthe following employees (non----exempt and exempt)?exempt and exempt)?exempt and exempt)?exempt and exempt)?
BothBothBothBoth NonNon----ExemptNonNonExemptExemptExempt ExemptExempt ExemptExempt
Weekly 9% 17% 0%
Twice a month (15th and last day of month) 17% 1% 8%
Bi-weekly 54% 6% 9%
Once a month 1% 0% 2%
In years that have 27 payrolls, most employers that pay exempt employees every two weeks don’t change anything, continue to pay employees as usual, and simply budget for the 27th pay
accordingly. Figure Figure Figure
Figure 555 | 5| | | If yIf yIf yIf you pay every two weeks, how does your organization handle years that have 27 ou pay every two weeks, how does your organization handle years that have 27 ou pay every two weeks, how does your organization handle years that have 27 ou pay every two weeks, how does your organization handle years that have 27 payrolls versus 26 for exempt employees?
payrolls versus 26 for exempt employees? payrolls versus 26 for exempt employees? payrolls versus 26 for exempt employees?
© ERC, 2015 | www.yourERC.com 9
79% 86%
0% 20% 40% 60% 80% 100%
More than one bank More than one bank account
86% 36% 1% 12% 60% 49% 2% 4% 50% 0% 20% 40% 60% 80% 100%
Payroll Debit Cards Paper Checks Direct Deposit
Requires Offers
Does not offer
Payment Methods
Payment Methods
Payment Methods
Payment Methods
Very few employers officially “require” employees to use any particular payment method except for direct deposit (50% do “require” this method). However, they do offer other payment methods including sixty percent of respondents offering paper checks and 12% offering payroll debit cards. Figure
Figure Figure
Figure 666 | 6| | | Please indicate whether Please indicate whether Please indicate whether Please indicate whether or not or not or not or not youryour organization requireyouryourorganization requireorganization requireorganization requiressss////offers each payment method. offers each payment method. offers each payment method. offers each payment method.
The vast majority of respondents allow their employees to set up direct deposit to more than one bank and/or to more than one account. In general, these offerings were somewhat more common at larger, for-profit organizations.
Figure Figure Figure
Figure 777 | 7| | | EEEmployees Employees at your organization can mployees mployees at your organization can at your organization can set up direct deposit toat your organization can set up direct deposit toset up direct deposit to which of the followingset up direct deposit towhich of the followingwhich of the followingwhich of the following????
More than one More than one More than one More than one bankbankbankbank More than one bank More than one bank More than one bank More than one bank acacacaccountcountcountcount
Industry Industry Industry Industry Manufacturing 80% 86% Non-Manufacturing 78% 88% Non-Profit 73% 73% Organizational size Organizational size Organizational size Organizational size 1-50 66% 69% 51-200 84% 91% 201-500 76% 97% Over 500 92% 75%
© ERC, 2015 | www.yourERC.com 10
Respondent Demographics
Respondent Demographics
Respondent Demographics
Respondent Demographics
One-hundred and forty-five (145) organizations in Northeast Ohio participated in the survey; a breakdown of the industries and sizes they represent is provided below.
Figure Figure Figure
Figure 888 | Respondent demographics by industry and organizational size8| Respondent demographics by industry and organizational size| Respondent demographics by industry and organizational size | Respondent demographics by industry and organizational size
Percent Percent Percent Percent Industry Industry Industry Industry Manufacturing 56% Non-Manufacturing 34% Non-Profit 10% Organizational size Organizational size Organizational size Organizational size 1-50 24% 51-200 48% 201-500 20% Over 500 8%
© ERC, 2015 | www.yourERC.com 11
Participating Organizations
Participating Organizations
Participating Organizations
Participating Organizations
Thank you to the following organizations for their participation! Thank you to the following organizations for their participation!Thank you to the following organizations for their participation! Thank you to the following organizations for their participation! 1 EDI Source, Inc.
A Raymond Tinnerman Accel Group
Aero Fluid Products Akron Zoo
Alloy Bellows & Precision Welding, Inc. Aluminum Line Products Company Automated Packaging Systems, Inc. Bainbridge Township
Bay Corporation
Benjamin Rose Institute on Aging Bettcher Industries, Inc.
Boiler Specialists, Inc.
Boys & Girls Clubs of Cleveland Bravo Wellness, LLC
C&K Industrial Service, Inc. C.TRAC, Inc.
CardinalCommerce CASNET
Century Federal Credit Union Chapman & Chapman, Inc. Clark-Reliance Corporation Cleveland Housing Network Cleveland Zoological Society
CNC A Global Body & Equipment Company ComDoc
Component Repair Technologies Cornwell Quality Tools Company Corporate Screening Services, Inc. County of Summit ADM Board Cres Cor
Crystal Clinic Custom Products
Cuyahoga Arts & Culture Design Molded Plastics, Inc. DRB Systems
DS Benefits Group Duramax Marine, LLC Dyson
EBO Group Inc. ECKART America EGC Enterprises
Empaco Equipment Corporation Energy Focus, Inc.
EnerSys
Euclid Heat Treating Company
Everstream
Exacta Drafting America, Inc. Executive Caterers
FormFire Fusion, Inc. GLT Companies Gotta Groove Records Grand River Academy Great Lakes Brewing Co. Great Lakes Petroleum Greater Cleveland Food Bank Heidtman Steel Products Hinkley Lighting
Holden Arboretum
HzW Environmental Consultants, LLC ID Images, LLC
Intellirod Spine, Inc. InterDesign, Inc. Intigral, Inc. JAE Tech, Inc. Jet, Inc.
Kaufman Container Company Kaydon Corporation
Kennametal Kerr Lakeside, Inc. King's Medical Group Lanly Company
LayerZero Power Systems, Inc. Logan Clutch Corp
Lumitex, Inc.
Main Street Gourmet Majestic Steel USA Malco Products, Inc. Maloney + Novotny, LLC Mar-Bal, Inc.
Marous Brothers Construction MB Dynamics, Inc.
Medical Service Company Meister Media Worldwide Merritt Woodwork
Midwest Industrial Supply, Inc. MJM Industries, Inc.
More Than Gourmet Myers Industries, Inc.
National Automotive Experts National Telephone Supply
© ERC, 2015 | www.yourERC.com 12 NLC Loans
NOPEC NSL Analytical
Oakwood Laboratories, LLC One Health Organization Ophthalmic Physicians, Inc. Orbital Research Inc.
Orthopaedic Associates, Inc. OSG USA, Inc.
Park Place Technologies Pearne & Gordon, LLP PRC Medical, LLC
Pressure Technology, Inc. Primary Packaging, Inc. Pyramyd Air Ltd. Pyrotek Inc.
Quasar Energy Group Ramco Specialties Ranpak Corp RBB Systems
Refrigeration Sales Corp Revenue Group
Ritrama, Inc.
Ross Environmental Services, Inc. SAFEbuilt
Samsel Supply Company
Sandridge Foods Inc.Sheet Metal Products Co. SIFCO
Software Answers SSP
Stark Enterprises State Chemical
Stop N Go of Medina, Inc. Superior Roll Forming Suttter O'Connell Tangent Company, LLC Technical Consumer Products The Step2 Company, LLC The Will-Burt Company Transfer Express
TT Electronics Integrated Manufacturing Services Vincent Lighting Systems
Wayne Homes
Weltman, Weinberg & Reis Wheeler-Rex
Whirlaway
Wire Holdings, LLC dba Radix Wire Wyman-Gordon Forgings (Cleveland) Xact Spec Industries,LLC
© ERC, 2015 | www.yourERC.com 1
201
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5 ERC Payroll Practices Survey
ERC Payroll Practices Survey
ERC Payroll Practices Survey
ERC Payroll Practices Survey
Conducted by ERC
Conducted by ERC
Conducted by ERC
Conducted by ERC
387 Golf View Lane, Suite 100 Highland Heights, OH 44143 440-684-9700 | www.yourERC.com
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