To-Be Process Review Workshop

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To-Be Process Review Workshop

Human Resources

Garnishments, Termination, and Deceased

Employee Payments

Location: ROSS Building

Room: 130

Time: 8:00 am – 12:00 pm

Date: 8/18/05

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Welcome!



Introductions of Group

• Representatives from:

» HR & Payroll West Lafayette » HR & Payroll Calumet

» HR & Payroll Ft. Wayne

» HR & Payroll North Central

» One Purdue HR team members

• Facilitated by:

» Troy Markusson (BearingPoint)

– With input from:

• Rick Miller (Purdue) • Julie Gregory (Purdue)

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Workshop Logistics

 Speakers

 Tent Cards

 Rest Rooms

 Break

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Workshop Agenda

1. Discuss Workshop Objectives, Rules and Principles

2. Garnishments 3. Break

4. Terminations and Deceased Employee Payments

5. Capture Issues in the “Parking Lot”

6. Discuss Next Steps 7. Adjourn

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Why Are We Here?

Our objective today is to…

 Discover

 SAP terminology, definitions, and capabilities.

 Specific opportunities for business transformation.

 Best practices in the context of the SAP implementation.

 Documented future process and any system gaps.

 Validate

 “To-Be” data and business processes.

 Required policy changes (if any).

 Process acceptance by core process owners, advisory committees, and University leadership.

 Facilitate Communication and Change Management  The future state of Purdue University

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What Have We Done to

Prepare?

To prepare for this workshop, we have…

 Researched Best Practices

 SAP software is the best practice source.

 As stated in the One Purdue Guiding Principles, the SAP software WILL NOT be modified.

 Developed Proposed Business Processes

 The “To-Be” business processes were developed utilizing the best practices found in the SAP software.

 Reviewed and Refined the Proposed Processes with Knowledgeable Staff in Key Operational Positions.

 Presented the proposed processes.

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What is Your Role?

Today, we need you to…

 Review and Validate the Proposed Process.

 Identify Gaps in the Proposed Process.

 Identify Organizational Challenges.

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What will come from this Meeting?

The output from this meeting includes…

 A Business Process Review Report.

 To-Be Process Flowcharts.

 Gap Analysis Report.

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Workshop Ground Rules

 Respect Time

 Respect Process

• Stick to agenda topics.

• One subject discussed at a time.

 Respect One Another

• One conversation at a time.

• Cell phones and Blackberrys turned off. • Listen.

 Stretch

 Keep the end in sight

 Work to gain consensus on terminology

 Silence means agreement

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BPR Guiding Principles

1. “OnePurdue Guiding Principles” will apply.

2. Scope: Critical business processes for HR, Finance and Campus Management. 3. Primary best-practice source = SAP and third-party bolt-on solutions

(return-on-investment opportunity).

4. SMEs will be empowered by process owners to make key decisions regarding processes.

5. Enterprise processes will adhere to software best-practices – flexibility in implementation.

6. Disposition for exceptions to best practices:

a. Termination of process

b. Work-Around: “User Exit” w/o code modification c. Off-the-shelf bolt-on

d. Offline operation

7. Process owners and key stakeholders “buy-in” validation required.

8. All best practices (5) and exceptions (6) must be integrated into the OnePurdue system.

9. Successful BPR also requires:

a. Executive commitment

b. Effective change agents to drive best practices and overcome resistance c. Appropriate organization structure

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What Is the OnePurdue

Project Timeline?

Finance and Procurement: Accounts Payable, Accounts Receivable, Work-Effort Reporting, Purchasing

HR/Payroll 1: e-Recruitment

HR/Payroll 2: Organizational Management, Personnel Administration, Payroll, Benefits, Time Entry and Evaluation, ESS, Workflow

HR/Payroll 3: Personnel Development, Open Enrollment, Year-End Payroll Processing

Enrollment and Student Affairs 1: Student Recruitment, Admissions, PFAE/ADMS, Transfer Articulation and Equivalency Rules

Enrollment and Student Affairs 2: Financial Aid

Enrollment and Student Affairs 3: Course Catalog, Student Master, Academic History, Grading, Degree Audit, Graduation, Student Accounting Master Data, Cashiering, Account Management, Billing, Payment Plans, Classroom Scheduling, Registration, Academic Calendar, Academic Progression

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Let’s Get Started!

Our topics today are…

• Garnishments

• Termination and

Deceased Employee

Payments

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How are Payroll

Garnishments Setup in SAP?



Infotype 0194 – Garnishment Document



Infotype 0195 – Garnishment Order

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Garnishment Adjustments

-Refund



Refund an amount deducted from the

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Garnishment Adjustments –

Calculate End Date



Will turn off garnishment after set number of

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Garnishment Adjustments –

Additional Deduction



Will take a one time additional deduction on

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Garnishment Adjustments –

Separate Calculation



The garnished amount of the regular pay and that

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Garnishments at Purdue



IRS Tax Levies



IN State Tax Levies



Federal Student Loans



IN Creditor Garnishments

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IRS Tax Levy - Rule



Amount exempt is dependent on marital

status, number of exemptions, and number

of standard deductions

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IN State Tax Levy – Rule



Non-exempt earnings up to a maximum of

25% of disposable net, or 30 times federal

minimum wage

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IN State Tax Levy – Infotype

0194

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IN State Tax Levy – Infotype

0195

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Federal Student Loans

 If garnishment issued by a state guarantee agency,

no more then the lesser of 10% of disposable

earnings, or 30 times federal minimum wage, may be garnished

 If garnishment is issued by Department of Education

issues garnishment order then 15% of disposable earnings can be collected

 Employee can agree in writing to higher percentage

 If employee has multiple student loan garnishments

maximum that can be garnished cannot be greater than CCPA limit

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Federal Student Loans –

Infotype 0194

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Federal Student Loans –

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Federal Student Loans –

Infotype 0195 (Multiple

Loans)

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IN Creditor Garnishments



Follows Credit Consumer Protection Act

(CCPA)

• Non-exempt amount equal to 25% of disposable

net or 30 times federal minimum wage



Service Fee – May collect the greater of

$12.00 or 3% of the total judgment debt

• Fee must be allocated as ½ from the debtor and

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IN Creditor Garnishments –

Infotype 0194

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IN Creditor Garnishments –

Infotype 0195

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Child Support



All out of state child support orders received

are required to follow IN law



IN follows follow CCPA for child support rules

• 50% of disposable net is exempt if employee is

supporting another spouse and/or children

» 45% if employee is 12 weeks in arrears

• 40% of disposable net is exempt if employee not

supporting another spouse and/or children

» 35% if employee is 12 weeks in arrears

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Third Party Remittance

 Remittance rule and vendor is stored on infotype

0194 per employee

 Will process both check and EFT

 Deductions will be sent to Accounts Payable every

pay period and Accounts Payable will return checks to the Payroll department for further documentation

 On an individual basis you can choose to either have

one check cut for all employees that are being remitted to the same vendor, one check for each employee to the same vendor

 Information can be included on the check voucher

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Garnishment Letters



The following letters can be set up in SAP

• Notice Letters – Sent to employee informing

employee of new garnishment received

• Answer Letters – Sent to court with each payment

breaking down calculation



Currently Answer Letters not sent to the

courts but may be wanted



Letters can be set up to run automatically



Need copies of all different letters you are

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Garnishments at Go-Live

 Garnishments will need to be loaded manually at

Go-Live

 Information that is required in SAP does not exist in

legacy system today

 Will need to review the orders in some cases to get

correct data in SAP

 Will set up a spreadsheet and it will need to be

maintained from start of Parallel Payrolls to Go-Live

 Will load the spreadsheet into SAP so that two

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How are Terminations

Handled in SAP?

 HR will receive notification of employee termination

 HR will process employee through termination action

 Employee will be placed in an “employment status”

of Withdrawn

 Payroll will run query to identify any new terminated

employees

 Payroll will pay out any terminal vacation or sick

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HR Termination Action



Employee is put in withdrawn employment

status



Vacancy is created on the position



Direct deposit is automatically changed to

check



Address is changed if necessary



Voluntary deductions are turned off



Benefits are turned off

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Employment Status – Infotype

0000

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Termination Query –

Selection Screen

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Terminal Vacation/Sick



When employee terminates, Vacation that

has been accrued is paid out to the employee



If employee is retiring, unused Sick is paid

out to employee (bi-weekly only)

• 25% of first 520 hours

• 100% all hours over 520



If employee is not retiring (or is not

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Terminal Vacation – Infotype

0416

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Terminal Sick – Infotype 0416

When payroll is processed, rule will only pay out first 520 hours at 25%, and remainder at 100%

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Separation Pay



Separation pay is received from HR



Entered as an Additional Payment on

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Separation Pay – Infotype

0015

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Off-cycle options



Can pay any future “On demand” payroll early



Typically used if employee is being escorted

off campus



Will review this process during Off-cycle BPR

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How are Deceased Employees

Handled in SAP?

 HR will receive notification of employee death

 HR will process employee through termination action (additional action reason of Death)

 Employee will be placed in an “employment status” of Withdrawn  Payroll will run query to identify any new terminated employees

 Payroll will determine who future dated payments need to be made to  Payroll will pay out any terminal vacation or sick

 Payroll will update taxes to exempt employee from appropriate taxes  If payments need to be paid to estate, or third party, clear out in

Payroll and pay through Accounts Payable (or change employee name and pay through Payroll)

 Update year-to-date totals in Payroll  Issue 1099 through Accounts Payable

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Employee Dies Before

Cashing Check

 Check is returned to Payroll and payment must be

made to the employee’s personal representative for the same Net Pay, since income and withholding

taxes were properly withheld

 Wages and amounts must be reported on deceased

employee’s W-2

 When check is returned, cancel check, rename

employee on infotype 0002 to Estate of xxx (or personal representative) and reissue check

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Name change on Infotype

0002

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Wages paid after employee

dies

 All payments must be paid to the employee’s estate or legal representative and must be reported on 1099-MISC

 All payments must be processed through Payroll

 After all deductions are calculated and Net Pay is processed, a deduction will need to be generated to offset any money being paid to the deceased employee