1. HR/Payroll Modernization Update
Payroll Coordinators
Spring 2014

2. Agenda Project Update Timeline Key Staffing Updates
Full Project
Next Six Months
Key Staffing Updates
Overview of Biweekly Payroll
Questions
April 2014
Payroll Coordinators

3. Vision & Objectives of HR/P
HR/Payroll Modernization will deliver a modern system and set of standardized processes to significantly improve support for critical HR and payroll functions across the University.
Objectives
Replace UW’s existing payroll system with a modern, integrated HR and payroll system
Implement a technology platform that allows UW to outsource the infrastructure
Implement standardized HR and payroll processes and practices across the entire University
Reduce UW’s risks, realize efficiencies, enable modern practices, and provide better competitive positioning
April 2014
Payroll Coordinators

4. Progress to Date Completed Business Process Redesign work
Completed Procurement process
Received approval to proceed from Board of Regents and State CIO’s Office
Began implementation on March 3
BPR
Identified where process changes could provide efficiencies and reduce risk
Determined how technology can help
Go-Live
Going live in late December 2015 to support the first pay period of 2016
Completed the seven-week planning phase
April 2014
Payroll Coordinators

5. Solution Vendor: Workday
Software-as-a-Service
Core functionality delivered in 22 months (December 2015)
Iterative approach to implementation
Partnering with IBM for implementation
Other higher-ed institutions using Workday include:
Brown
Carnegie Mellon
Cornell
Georgetown
University of Southern California
SaaS
Workday is a Software-as-a-Service (SaaS) provider and delivers HR, talent management, payroll, and time-tracking functionality in a single system.
With the SaaS approach, Workday hosts the HR/payroll system, providing access via a web interface; the University pays for the solution on a subscription basis. This solution will help simplify our internal technology maintenance functions and ensure that UW is always on the latest software release.
Workday’s implementation schedule is very aggressive. We’ll look at the timeline in a minute.
Workday has developed a strong portfolio of clients, including higher education institutions such as Brown, Carnegie Mellon, Cornell, Georgetown, NYU, USC, UT Austin, and Yale, among others.
April 2014
Payroll Coordinators

6. What is a Payroll System?
A payroll system involves everything that has to do with the payment of employees.
Calculating Wages
Withholding Taxes and Deductions
Print/Deliver Checks -or- Make Direct Deposits
Pay Employment Taxes
At year-end, the payroll system is used to summarize payroll information for tax and reporting purposes.
April 2014
Payroll Coordinators

7. What is an HR System?
An HR system is a tool used to store and access HR-related information and perform HR-related functions ranging from recruitment through separation or retirement.
Job announcements
Compensation tasks
Onboarding of new employees
Position management
Time tracking
Leave tracking
Administering benefits
Such a system provides management of all employee information, allows reporting and analysis, and integrates with a payroll system.
April 2014
Payroll Coordinators

8. Functional Scope for Phase 1
Time Tracking HR
Benefits Administration
Time
Payroll
Compensation
Talent Management
(for Medical Centers)
Absence Management
April 2014
Payroll Coordinators

9. Beginning approximately January 2017
Scope for Phase 2
Beginning approximately January 2017
Applicant tracking system
Learning management system
Talent management for all UW units
Case Management
Disability Support Services
Violence Prevention
Environmental Health & Safety
April 2014
Payroll Coordinators

10. Impacts All UW Workforce Members
Staff, faculty, and student employees
Use a new interface to:
Access earning statements, leave balances, and time off requests
View and change direct deposits and W2 withholdings
Change personal information (contact info, benefits selections)
Receive pay on a different schedule
Managers and supervisors
Easily review employee schedules
Approve time-off requests
Approve time sheets for overtime eligible employees
Staff with HR/payroll processing responsibilities
Some work will shift from one office to another
New methods of accomplishing certain actions
Every member of UW’s workforce will be impacted, though some will experience more impact than others.
April 2014
Payroll Coordinators

11. Timeline & Next Steps

12. HR/P Implementation Timeline
March – April 2014
April – October 2014
Nov 2014 – May 2015
May – October 2015
Nov – Dec 2015
Jan-Feb 2016
Plan
Design (Architect)
Configure & Prototype
Test
Deploy
Post-Production support
Go-Live
Data Conversion and Migration
Integrations
Quality Management
Organizational Change Management, Communications, Knowledge Transfer and End-User Training
Operational Readiness
April 2014
Payroll Coordinators

13. Snapshot: Next 6 Months
April 2014
Payroll Coordinators

14. Activity During the Next 6 Months
Design workshops (May through September)
System design decisions
HR and payroll processes
Integrations to unit systems
Reports
Assess impacts
Units and roles
University policies
Load additional data into new system
April 2014
Payroll Coordinators

15. HR/P Team Staffing

16. Specific to HR functions: Alisha LaPlante is our HR lead
Sherrie Thissell is our Compensation lead
Marissa Graudins is our Time and Absence lead
Erin Roach is our Benefits lead
Shirley Runkel is our Academic Personnel Functional Subject Matter Expert
Ginny Montgomery is our Payroll lead
April 2014
Payroll Coordinators

17. Functional Leads & Teams
Payroll: Ginny Montgomery
Keli Bort, Payroll Functional Analyst
Academic Personnel: Shirley Runkel
Benefits: Erin Roach
Jon Petersen, Benefits Functional Analyst
Compensation: Sherrie Thissell
HR: Alisha LaPlante
Time/Absence: Marisa Graudins
Christa Woodhull, Time/Absence Functional Analyst
Jean Swarm, Time/Absence Functional Analyst
April 2014
Payroll Coordinators

18. Biweekly Payroll

19. Payroll Situation
Problem: Existing semi-monthly pay cycle is required by state statute.
Challenging to calculate overtime and premium pay for overtime eligible employees when a workweek is split between two periods (13x in 2013).
Impacts scheduling and reconciliation of Fair Labor Standards Act (FLSA) workweeks with pay period payments.
Creates confusion for employees, particularly those in healthcare whose schedules are based on work weeks, rather than semi-monthly periods with variable work days.
Is inconsistent with best practices.
Would require UW to customize or configure its new HR/payroll system to adhere to this statute, requiring additional and unnecessary costs.
Solution: When HR/P goes live, we are moving to a biweekly pay cycle.
Legislation signed by Gov. Inslee in March 2014 allows us to move to the biweekly cycle.
Saves approximately $750,000 annually.
Cost avoidance of $1.5 million to $3 million by implementing a biweekly pay cycle with new system.
April 2014
Payroll Coordinators

20. Benefits of Biweekly Payroll Cycle
For the University:
Standardizes and establishes a more systematic approach to payroll time reporting.
Standardizes pay practices across all UW locations.
Aligns with business and healthcare best practices.
Provides significant scheduling efficiencies for UW Medicine, which operates 24/7 and whose employees comprise 30% of the UW workforce.
Reflects more efficient and effective time reporting.
Reduces administrative burden to manually prepare, review, and calculate pay.
Reduces payroll adjustments and overpayments, mitigating compliance risk.
Complements other elements of HR/P that will yield additional savings.
For employees:
Establishes a consistent pay period that contains the same number of days each time.
Paychecks are received 26 times per year (semi-monthly = 24 time annually).
Overtime pay will be more timely.
Biweekly pay frequency will have a standard 80 hours per pay cycle, resulting in a consistent leave without pay hourly rate.
Alignment of pay cycles in two-week increments against schedule that reflects coverage for the same period helps an employee to understand and verify worked and paid hours.
April 2014
Payroll Coordinators

21. Next Steps Conduct transition planning
Build a plan for the final payroll runs in HEPPS
Create a new academic year schedule based on bi-weekly payroll and the academic instructional calendar
Assess change impacts to downstream systems
Review options to mitigate impact to UW workforce
Develop a communications and outreach plan
April 2014
Payroll Coordinators

22. Questions?