1. EDGE Supervisor Training Payroll

2. Agenda Supervisory role in supporting the timekeeping and payroll function Time collection process Reviewing and approving time Departmental controls Gross Pay Register importance Additional resources Timesheet exercise

3. The Big Picture UM Health System Off-Cycles for FY2012 $7,980,000.00 Annual overpayments average ~$400,000.00

4. More Big Picture Department budgets Payroll reported incorrectly can cause overpayments which negatively impact the department Employee satisfaction and retention Staff become dissatisfied when they are incorrectly paid, losing interest or leaving Patients, families, and staff are directly impacted Dissatisfied employees are less likely to perform at a high level, fellow staff and co-workers

5. The Payroll Process

6. Key Takeaways Salaries equate to over half of the total operating expenses for UMHS Paying staff accurately supports the institutional goals of employee satisfaction and retention Payroll controls set guidelines for responsibilities to individuals and accurate pay Timekeeping and payroll are complex and should be a priority for all departments

7. Steps to a Successful Payroll Update Static Groups/Schedules if needed Review Leave Balances Report Time Run Reported Time query Next day run Payable Time query Make last minute changes on Cut-off day Day after payroll runs check Gross Pay Registers (needs Manager Authorization) Enter Prior Period Adjustments Request Off-cycle Checks Review Off-cycle Gross Pay Register (needs Manager Authorization)

8. Payroll Controls Maintain an effective system of monitoring and oversight to ensure the accuracy and validity of the payroll –Control Steps Collecting time Approving time Submitting time Verifying payroll transactions

9. Time Collection Non-Exempt Staff –All hours worked must be reported accurately & use UM standard time to tenth of an hour Exempt Staff –Report Exception hours only to the nearest ½ day –May be helpful to make notation on the timesheet when employee works alternate days (i.e. weekend for weekday)

10. Time Collection Both Non-Exempt & Exempt Employees –Retain time reports to reconcile with Gross Pay Registers –Electronic interface files must have system to determine appropriate individual is authorizing transaction

11. Time Collection Both Non-exempt & Exempt Employees –It is the Supervisor’s responsibility to ensure an employee has sufficient PTO hours in their bank All PTO hours listed are accurate and reported on the correct day Flexed hours must be completed in: –Same week for non-exempt –Same month for exempt All termination or LOA paperwork must be processed in a timely fashion to avoid overpayment of wages and benefits

12. Approvals Time Approval Supervisor’s Role –Must review time records for accuracy –Sign with an original signature –Make sure employee signs timesheet –Changes to employees’ timesheets must be discussed with employee prior to pay out –Make sure timesheets are collected, reviewed, and delivered to the timekeeper by the agreed upon due date

13. Payroll Controls Must have adequate internal “checks and balances” when verifying payroll –All payroll entries approved and verified at the proper level (be able to show authorization of each payroll) –Review the gross pay register after every payroll run (biweekly and monthly) to minimize overpayments and errors –Paper timesheets should not be returned to employees after authorization in order to make delivery to Timekeeper –A backup timekeeper is required (very important!)

14. Gross Pay Register Gross Pay Register (on-cycle GPR and off-cycle GPR) Distribution methods (Handout) Data Mart –http://www.med.umich.edu/i/hfs/datamart.htm Robin Caulkins: access and training Business Objects/Data Warehouse

15. Separation of Duties Approver (Supervisor) Timekeeper Reconciler/Reviewer –Final Authorization (Not the timekeeper)

16. Record Retention Internal time documents – retain for seven fiscal years plus current fiscal year Time records must have authorization signatures included

17. Review Supervisor Responsibilities Understand how employees report time Check timesheets for accuracy Support the timekeeping function –Ensure proper training and access –Give adequate time to process payroll –Implement separation of duties, if needed –Make sure payroll has a documented authorization

18. We’re here to support you! We highly recommend that every new supervisor attend the MyLinc course TLC112 Time Reporting/MPathways. Register through MyLinc on Wolverine Access Read Monthly Payroll Newsletter, Payroll Calendars, Review all emails sent to Timekeepers –Send umhhcpayroll@umich.edu with your request Let us know what you need

19. Helpful Contacts UMHHC Payroll Main line: 615-8722 –Problem solving –How to report time –Questions about pay policies and practices (HR Consultant) Campus Payroll/ Employee Service Center 615-2000 –Questions regarding salary transfers, Special Payment forms –Benefits, Taxes, Deductions or Where is my Check? ITS Help Desk 936-7000 –System issues, queries, how to use system, how to register for payroll classes

20. Helpful Websites UM Payroll (Dates/Deadlines, TRC/Earn Code lists, Tax info, forms, etc…) –http://www.payroll.umich.edu/ MyLinc (sign up for TLC112 class, step by step procedures for Mpathways) –http://maislinc.umich.edu/MAISlinc/ HSHR Website, Bargaining Agreements –http://www.med.umich.edu/umhshr/supervisor/bargaining- agreements.html UM Joint Implementation Team (nursing contract) (Holiday reporting scenarios, contract clarifications) –http://www.med.umich.edu/nursing/jit/docs/index.htm

21. Helpful Websites Standard Practice Guide (i.e. Holiday, shift premium, Tuition support, etc……) –http://spg.umich.edu/section/201/ UMHHC Policies (PTO) –http://www.med.umich.edu/i/policies/umh/toc.html#GENERA L%20PERSON Timekeepers Network (TRC Manual, Sell Back and Season Day reporting guidelines, etc……) –http://www.med.umich.edu/umhshr/timekeepers/index.html

22. Thank You! Questions? Next: Timesheet Exercise