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Payroll Communications for Principals February 2005

Payroll Communications for Principals February 2005. Communication Team: Pete Tingom Gina Ferrazzo Rodney Marion Nell Johnson. Overtime Changes. Overtime Changes. SBBC is implementing a new method to calculate employee overtime to meet FLSA requirements

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Payroll Communications for Principals February 2005

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  1. Payroll Communications for PrincipalsFebruary 2005 Communication Team: Pete Tingom Gina Ferrazzo Rodney Marion Nell Johnson

  2. Overtime Changes

  3. Overtime Changes • SBBC is implementing a new method to calculate employee overtime to meet FLSA requirements • SAP has been configured to systematically calculate the new formula • Employees will receive retroactive payments back to 7/1/2004 SAP 3rd Quarter Networking Session

  4. Current Process Employees are assigned to a position Position has a salary rate attached Hours are reported on that position by Payroll Contact OTP hours are paid @ 1.5 x position’s hourly rate New Process SAP is configured to compare the OTP hourly rate on each secondary position with the hourly rate of the primary position Employee is paid OTP at 1.5 x higher of the two hourly rates Overtime Changes Detail SAP 3rd Quarter Networking Session

  5. Current Process Jim’s . . . Primary Position = Hd Facilities @ $25/hr Secondary Position = Child Care Monitor I @ $8/hr Jim’s . . . Paid for 10 hrs/week as Child Care Monitor I 10 hrs x $8/hr x 1.5 = $120.00 *Note: Jim worked a 40 hour week on Primary Position New Process Jim’s . . . Primary Position = Hd Facilities @ $25/hr Secondary Position = Child Care Monitor I @ $8/hr Jim’s . . . Paid for 10 hrs/week as Child Care Monitor I 10 hrs x $25/hr x 1.5 = $375.00 *Note: Jim worked a 40 hour week on Primary Position Overtime Change Example SAP 3rd Quarter Networking Session

  6. OT Retroactive Payments • New configuration moved into production in February with the S-4 February 17th Paycheck impacted first • All Payroll runs after that date will reflect this change and employees will see “difference from pre” for retroactive amounts • Retroactive payments in next scheduled paycheck adjusted back to 7/1/04 • Employees will see new amounts & “Differences from pre” on remuneration statements SAP 3rd Quarter Networking Session

  7. Be Proactive….. • Explain new calculation method to affected employees now • Assist them to determine # of hours paid at the “higher” rate • Suggestion: Use the ZTIM Report run by Personnel #(s) back to 7/1/04 to identify hours • Use ZRETRO Report to assist those with “Differences from pre” • Employees can compare retroactive corrections “Difference from pre” on each check in ESS – Payroll History SAP 3rd Quarter Networking Session

  8. PAYROLL CONSOLIDATION PROJECT OBJECTIVES & IMPACT SAP 3rd Quarter Networking Session

  9. Purpose • Reduce the # of payroll areas • Comply with Audit recommendations • Assist with reduction in payroll exceptions caused by calendar changes • Bi-weekly payroll scheduling • Increase efficiency in processing/running payrolls • Standardize employee payroll schedules • Standardize work week schedules (Monday – Sunday) • Offering Payroll Options to employees • Comply with Union requests SAP 3rd Quarter Networking Session

  10. 7 Payroll Areas Reduced to 2 • AA = 26,000 employees • Includes most instructional,paraprofessionals & substitute teachers • BB = 14,000 employees • Includes most non-instructional &241-day calendar instructional • Pay dates will alternate every Friday* for each Payroll Area • *Schedules may be affected byHolidays, Planning Days & emergency closings SAP 3rd Quarter Networking Session

  11. Bi-weekly Payroll Impact • Currently, salaried employees are paid semi-monthly receiving a total of 24 equalized paychecks • Effective 7/1/05 all employees will be paid bi-weekly • Example of changes to the # of paychecks for standard calendars: • 261-day calendar = 26 checks • 244-day calendar = 26 checks • 241-day calendar = 26 checks • 216-day calendar = 24 checks • 196-day calendar = 22 checks • 186-day calendar = 21 checks • # of Paychecks is subject to change based on yearly board approved calendars SAP 3rd Quarter Networking Session

  12. Bi-weekly Payroll ImpactBenefits Deductions Currently, salaried employees entitled to benefits receive their contractual salary with benefits deductions in 24 equal paychecks. 2005-06 Benefits deductions will change. An example of standard calendar changes: #Checks # Benefits Deductions 261-day calendar = 26 checks 24 checks(none 9/30/05 & 3/31/06) 244-day calendar = 26 checks 24 checks(none 9/30/05 & 3/31/06) 241-day calendar = 26 checks 24 checks(none 9/30/05 & 3/31/06) 216-day calendar = 24 checks 22 checks(none 9/30/05 & 3/31/06)* 196-day calendar = 22 checks 20 checks(none 12/16/05 & 5/25/06) 186-day calendar = 21 checks 20 checks(none 12/16/05) *BB Payroll Area SAP 3rd Quarter Networking Session

  13. Benefits Deductions for FNS Workers & Bus Drivers 2005-06 Benefits deductions will change: #Checks # Benefits Deductions Cafeteria Managers (salaried) 201 day calendar = 23 Checks 20 checks (none 9/30, 3/31, 6/9/06) Cafeteria Workers (hourly)* 186 day calendar = 21 Checks 18checks (none 8/19, 1/6, 4/28/06) Bus Drivers (hourly)* 190 day calendar = 21 Checks 18 checks (none 8/19, 1/6, 4/28/06) *Their deductions will be taken from paychecks that have a minimum of 7 working days in the payroll period SAP 3rd Quarter Networking Session

  14. Payroll Options • Salaried employees working less than a 241-day calendar will be given the option of Year Round salary payments • Salaried employees working 241 day-calendar or more will receive 26 checks and not need the option • Payroll Option Selection Period will be opened once per year (May 2 – 13, 2005) • Employees will make their selection via Employee Self-Service (ESS) SAP 3rd Quarter Networking Session

  15. Payroll Options Policies • Employees electing a “Year Round” payment schedule must utilize Direct Deposit with a financial institution of their choice • Employees must make an election during the Payroll Option Selection Period or their record will be programmatically set to receive payments within their board approved calendar • Employees opting for Contract Calendar Option do not need to enter selection in ESS SAP 3rd Quarter Networking Session

  16. Payroll Option Planning • All contract salaries & deductions will be paid to the employee within their board approved calendar • Deductions will be taken from contractual checks to provide the employee Year Round payments • Year Round payments will not have any deductions for taxes, benefits, etc. • Employees are advised to carefully consider their individual payroll & monthly financial circumstances SAP 3rd Quarter Networking Session

  17. Payroll Options Selection Process • May 2 – 13 ESS will be opened to eligible employees (salaried, working less than 241-days) • For comparison purposes, ESS will populate “Current Net Paycheck” field with current net paycheck amount based on the employee’s last paycheck in March 2005* • Employee will select Option 1 (Contract Calendar) or Option 2 (Year Round) payroll model • Based on March 2005* check net amount, ESS will calculate the new bi-weekly net amount and display the estimate for the Year Round model • Employee will click to choose Option 1 or Option 2 • Employee will be prompted to Accept Employee Agreement Statement prior to ESS allowing selection • ESS will not accept Option 2 (Year Round) if the employee does not have Direct Deposit SAP 3rd Quarter Networking Session

  18. Key Points • No extra paychecks at the end of school year! • Employees need to consider additional payments and/or deductions in net check amounts when using the Payroll Wizard for planning purposes • Difference between net amounts in comparison will be the Year Round deduction amount on contractual checks • Payroll Option selections cannot be changed after selection period ends – consider choices carefully ( just like Benefits Plan selection) • New hires only have Option 1 (Contract Calendar) payment option for 2005-06 SAP 3rd Quarter Networking Session

  19. Net Salary Amounts SBBC is unable to provide employees with their exact net paycheck amounts with the Payroll Wizard & ESS Tool Why???? • Contract negotiations are not finalized • Contract settlements may impact payments to employee groups in either contract salary, entitlements, supplements, etc. • Employees control their own deductions for taxes, TSA, Medical Spending Accounts, etc. • Employees control other recurring payment amounts such as additional jobs, supplements and entitlements • SBBC cannot predict the impact of contract negotiations or individual changes made by employees SAP 3rd Quarter Networking Session

  20. Direct Deposit • Convenience & Security for employees • No lines, lost checks • Payments deposited to account even if not at work • Payroll funds deposited during emergency closings • All eligible employees electing Year Round payments are required to establish Direct Deposit in SAP prior to 4/15/2005 • (BSCU) will establish free checking or savings accounts for any school board employee without credit checks SAP 3rd Quarter Networking Session

  21. Principal Level Meetings 3 Phase Training Plan Administrators Payroll Contacts Union Shop Stewards Onsite training for employees Payroll Consolidation website for information 411 Articles BECON Broadcasts CAB E-mail notices Posters Paycheck Messages Communication Plan SAP 3rd Quarter Networking Session

  22. Feb 3 - 17 Phase I Administrators Feb 10 – Mar 12 Phase II Training Site Payroll Contacts Union Shop Stewards Feb 10 – Apr 29 Phase III Training Onsite training for employees Apr 15, 2005 Set up Direct Deposit in SAP May 2 - 13 Payroll Option Selection Period for eligible employees Jul 1, 2005 Bi-weekly payroll implementation Timelines SAP 3rd Quarter Networking Session

  23. Site Communication Plan • Inform all employees of Bi-weekly payroll changes & eligible employees of Payroll Options opportunity • Share resources with all employees (Website, Payroll Wizard, Direct Deposit Forms) • Encourage group discussions early • Advertise BECON broadcasts & Payroll Events to staff • Conduct ESS Training needs assessment in March • Conduct ESS Training sessions as needed by April 2005 SAP 3rd Quarter Networking Session

  24. WHO DO YOU CALL? • Initial calls for assistance should be made to the Help Desk – 754-321-3080 • Calls to this number rotate between 3 Help Desk staffers and are directed to a voice mailbox after business hours or if all operators are currently assisting customers • Our Service Level Agreement is that these calls will be returned within 2 business hours • Trainers are often out of the office & callers are urged to utilize the Help Desk line 1st • Security Amilia Jaikaran754-321-3063

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