1. PeoplePay Project Financial UL Meeting October 17, 2007

2. 2 Agenda Overview of the Current Process Project Goals Project Phases Implementation Solution PeoplePay Application Demo Review of New Forms Prior to 2/18/08…. Appendix – Forms and Earnings Codes/GL Account Values

3. 3 Overview of Current Process Forms G (G/G1/G2/GQ) are currently used to process special payments to individuals Approximately 18,000 payments totaling over $25 million in FY 2006 Central approval and processing performed by HR, Payroll and Office of Contract Administration Actual payments made from Payroll and Procurement systems

4. 4 Project Goals Eliminate ‘Forms G’ Utilize consistent processes and existing methods to pay individuals for services Adhere to U-M Policies Comply with federal and state tax regulations Strengthen controls

5. 5 Phases I, II and III Representatives on the Ann Arbor Campus, July, 2007 – School of Information, College of Engineering – Center for Professional Development, Law School, Office of Technology Transfer, School of Natural Resources and Environment, Cell and Developmental Biology, School of Music, Theatre & Dance, Office of the Vice President for Research, University Human Resources, Ross School of Business Administration – Approximately 100 departmental users identified to-date Regional Campuses in October, 2007 Rest of the University in February, 2008

6. 6 Implementation Solution Web based PeoplePay application to guide users to the appropriate method for all payments to individuals – Easy to use (no training required) – Single, consistent process with appropriate controls – Forms G replaced by specific information and support requirements for specific payment purposes – Updated employee / independent contractor relationship criteria (Form GQ replacement) to increase compliance with IRS guidelines – Updated HR policy to address FLSA rules (lump sum payments allowed for non-exempt employees in certain situations) – Applications access Phases 1 and 2 restricted to participants and key central office staff – application URL to be sent to users via email Campus-wide implementation will be linked from Wolverine Access and only require Kerberos authentication

7. 7 Implementation Solution Cont. Change to payment processing – Non-employee relationship payments to U.S. citizens or permanent residents processed in Procurement System. – Employee relationship payments and non-U.S. citizens processed in Payroll System – Utilize Additional Pay functionality within the HRMS M-Pathways data base for payments to current faculty and staff

8. 8 Implementation Solution Cont. Phased roll-out approach will allow for initial testing/tweaking of new system and processes with a smaller user group before full university-wide roll-out

9. 9 PeoplePay Application Demo

10. 10 Review of New Forms FormOther ConditionsSend Form To:Payment System Request for Royalty PaymentNon-resident AlienPayroll OfficePayroll All othersProcurement Services Procurement (Non-PO Voucher) Reimbursement/Reconciliation of Moving and Relocation Expenses HRRISPayroll Request or Record Payment of Awards, Prizes, or Gifts EmployeePayroll OfficePayroll Non-Employee – Non-resident Alien Payroll OfficePayroll Non-Employee – U.S. citizen or permanent resident Procurement Services Procurement (Non-PO Voucher) Payment to Non-Employee for Taxable Services HRRIS Payroll Payment to Non-Employee for Services (Requires PeoplePay Cover Sheet) Non-resident Alien – Services in U.S. Payroll OfficePayroll All OthersProcurement Services Procurement (ePRO Transaction) Exception Payment to Faculty and Staff HRRISPayroll

11. 11 Prior to 2/18/2008……. Begin using Additional Pay for payments to current faculty and staff New Earnings Codes – NCC – Teaching a non-credit course – UNS – Services unrelated to an appointment New HRMS security role available – access only to Additional Pay Submittal form – Contact Sue MacDavitt (suem@umich.edu)