Presentation on theme: "Payroll Services An Overview and Discussion with the Privatization Advisory Committee."— Presentation transcript:
Payroll Services An Overview and Discussion with the Privatization Advisory Committee
Payroll Mission Statement Mission: To provide the district with efficient and effective support operations and to provide accurate and timely payments to our employees, vendors, and various reporting agencies.
Getting to Know Payroll Staffing: The Payroll Department consists of 11 staff members including the Director, Payroll Supervisor, five payroll processing agents, three Payroll call center agents, and one administrative assistant.
Services We Provide We provide : Full-service payroll processing to all employees of the district Monthly, quarterly, and annual reports to governmental agencies Payment requests and remittance information to non-benefit vendors Voluntary deduction and garnishment set-up for employees Assistance with reconciliation of payroll liability general ledger accounts Assistance with salary audit exceptions from the Department of Public Instruction Continuous review and update of the payroll system set-up. Acceptable customer service level through verbal and written communication with both internal and external customers Resolution to employee inquiries about pay, deductions, and other requests for assistance
Current Payrolls Biweekly – includes all non-exempt employees on 9, 10, and 12 month calendars; average volume of 8,100 employees during school year; requires 112 steps to complete entire payroll; paid on Friday Monthly - includes all exempt employees on 10, 11, and 12 month calendars; average volume of 10,800 employees; requires 99 steps to complete entire payroll; paid last day of the month Longevity – includes all eligible employees with 10+ years of creditable service; volume varies monthly; paid on the 10 th day of the month Disability – includes all employees on Short-term Disability; volume varies monthly; paid on the 10 th day of the month Offcycle - processed on demand; volume varies based on need
Document Volumes W-2 tax forms YearNumber of forms 200725,941 200825,136 200923,630 201023,312 Payments to employees Fiscal yearNumber of payments * 2007 – 2008371,327 2008 – 2009364,194 2009 – 2010353,711 2010 – 2011340,701 * Number of checks or advices created Trend – consolidation of payments reduces overall total reduction in employee count and a reduction in employee turnover reduces W-2 count
CMS Payroll Consists of Staff Members, Each Uniquely Contributing to CMS Support Operations CMS Payroll Department Payroll Processing Processing 62 regular payrolls and weekly offcycle payrolls to compensate employees Reporting Generating timely and accurate payments, reports, and tax returns to vendors and reporting agencies Payroll Preparation Preparing time records and deductions for payroll processing Customer Service Dedicating staff to achieve World Class Customer Service and resolve inquiries to the department Research Analyzing payments for employees, NCDPI, and vendor deductions Managing Providing leadership and direction to maximize department efficiency CMS Payroll Department: Who Are We?
Core Processes Defined Preparation – monitoring time record and batch receipt, keying payroll correction forms, and maintaining deductions Customer Service – providing timely and helpful information to our internal and external customers via telephone, written, and electronic correspondence Reporting – preparing check requests for vendor deductions, federal and state tax returns, unemployment wage reports, NC Retirement (ORBIT), and Department of Public Instruction (UERS) Research – responding to customer questions, reviewing submitted payroll corrections, analyzing vendor payments, and assisting with G/L liability account reconciliation Managing - leading and directing department to insure compliance with labor laws and requirements while maintaining efficient and effective support operations Processing – running payroll jobs in a payroll cycle (actual time spent)
Estimated Total Cost Payroll Salaries and Benefits $687,548.0012 budgeted positions Non-Personnel 8,061.00 Supplies 4,108.00 Payroll subtotal$699,717.00 Technology Hardware annual cost $ 3,452.00 Software maintenance 37,681.0050% of HR/PR maintenance Tech support 192,700.00Allocated resources from CMS tech services subtotal $ 233,833.00
Payroll Staffing Trends Fiscal Year2005 – 2006 2006- 2007 2007- 2008 2008- 2009 2009- 2010 2010- 2011 2011- 2012 Payroll Positions 16 159 (1)912 (2) Budgeted FTE Positions (3) 18,19319,14919,99819,87019,16618,53418,761 Ratio= EEs per payroll staff member 1137119612491324212920591706 1)6 positions transferred to HR Direct Connect 2)Currently operating with 11 positions 3)Budgeted positions includes Child Nutrition and After School Enrichment
Payroll Staffing Comparisons Year 2011 -12Charlotte- Mecklenburg Winston- Salem/Forsyth County Wake County Cumberland County Payroll Positions 127188 Budget Positions 18,7618,50018,2006,807 Ratio= EEs per payroll staff member 156312141011850
Current Automated Processes That May be Impacted by Outsourcing Payroll Administration KRONOS – Time and Attendance for all non-exempt employees, excluding bus drivers Department of Public Instruction – monthly UERS file Direct Deposit transmission Retirement data file (ORBIT) transmission State Employees and Carolina Cooperative Credit Unions – outbound transmissions MetLife Insurance – inbound and outbound transmission Prudential 401-k – outbound transmission Tax Sheltered Annuities – outbound transmission North Carolina Association of Educators – outbound transmission Texas Life Insurance – inbound and outbound transmission UNUM – flexible spending - inbound and outbound transmission
Challenges to Consider if Outsourcing Payroll Administration Considerations North Carolina Department of Public Instruction system benchmark requirements Ability to process employees with varying months of employment in the same payroll…Example: 10 month teacher and 12 month administrator, both monthly exempt employees Ability to track multiple funding sources so CMS can reconcile funds for State/Federal/Local payments and deductions Ability to distribute benefit expenses across multiple funding sources Current efficiencies gained with current system integration of HR and Payroll may not be realized Intercompany funding of deposits and deductions – State banking requirements are very specific
Challenges to Consider if Outsourcing Payroll Administration Considerations Ability to support the use of benefit escrow accounts for employees working less than 12 months to cover the additional months Ability to recalculate deduction amounts for benefits when employees change from 9 months to 12 months Ability to support multiple calendars for specific groups of employees Ability to apply unique and different leave rules to specific groups of employees Ability to modify, enhance, or customize programs to meet requirements set forth by the North Carolina General Assembly 3/27/2014
Understanding the Criteria for Consideration To recommend to the BOE additional outsourcing opportunities within key areas of CMS that deliver on the following criteria: People – minimize negative impact to CMS employees -- reduction in force/salary/benefits, shifting of work responsibilities Money - return of substantial, ongoing net savings to the CMS Operating Budget when brought to scale Service – maintain or exceed current service levels and service quality to key stakeholders in support of student achievement Risk – minimize scope of risk to CMS – ease of returning service in-house Measurement – ability to reliably project and measure the most critical aspects of the outsourced effort – $ savings, service quality, etc.
Committee Defined Selection CriteriaOption 1:Option 2Option 3Option 4Option 5 PEOPLE MONEY SERVICE RISK MEASUREMENT What This Is an informed preliminary assessment of the viability of some initial outsourcing options What This IS NOT a recommended list of areas to outsource Color Index likely will not satisfy criteria OR risk of failure to CMS is high could meet criteria but more information needed likely will satisfy criteria ? externally driven by bidding process We Have Developed and Completed A Preliminary Outsourcing Assessment Understanding the Assessment Tool Overall assessment for that option Assessment of each criteria by option Example: Full Operational Outsourcing
Committee Defined Selection Criteria Payroll Admistration Garnishment Processing W-2 & Tax Reporting PEOPLE result in CMS employee RIF, salary, benefits; affect significant # employees at scale MONEY result in return of ongoing net savings to CMS Op Budget ? SERVICE negative impact on service levels SERVICE negative impact on service quality RISK result in significant risk to CMS RISK ability to return the service in-house MEASUREMENT can be measured/evaluated CMS Payroll Services Preliminary Outsourcing Assessment