1. © Ceridian Corporation. All rights reserved. Sue Grundy, Service Delivery Manager Maximising the value of your Payroll Department

2. © Ceridian Corporation. All rights reserved. Significant Value Businesses can realise significant value through their payroll department, from greater accuracy through to highly valuable Management Information

3. © Ceridian Corporation. All rights reserved. Developing Efficiency Overview of how organisations can develop the efficiency of their payroll department

4. © Ceridian Corporation. All rights reserved. Key Performance Indicators How much the payroll department costs to run How much each payroll within the department costs to run How those costs are made up

5. © Ceridian Corporation. All rights reserved. Costs evaluated by remit and by payee Cost per remit (payslip produced) Cost per employee (payee)

6. © Ceridian Corporation. All rights reserved. The Reasons why to do this: Illustrate areas of excessive expenditure Manager can make informed decisions Compare year on year costs Assist with change management by comparisons between before and after period of change

7. © Ceridian Corporation. All rights reserved. Information Required Payrolls Number of Employees (Payees) Payslips (Remittances) Payment Methods Payroll Staff Payroll System Stationery Work area Any other payroll associated operational costs e.g. Postage, Administration

8. © Ceridian Corporation. All rights reserved. Example of Payroll Statistics Weekly payroll 100 hourly-paid employees Due to high turnover, generates 110 remittances per week, all paid by cash 4-weekly payroll 800 hourly paid employees 10% paid by cheque, remainder by BACS Monthly payroll 50 salaried employees, all paid by BACS

9. © Ceridian Corporation. All rights reserved. Costs incurred by the payroll department Staff Payroll Manager£30,000 + 15% on-costs Supervisor£20,000 + 12% on-costs 3 Assistants£15,000 + 10% on-costs each The supervisor works on two payrolls. Three fifths of his time is on the 4-weekly payroll, the remainder is on the weekly payroll. Assistant 1 works only on the 4-weekly payroll. Assistant 2 works only on the weekly payroll. Assistant 3 spends 3 days a week on the 4-weekly payroll and the remainder filing for everyone.

10. © Ceridian Corporation. All rights reserved. Associated Costs Associated payroll departmental costs Computer system Computer maintenance (software and hardware) costs £24,000per annum Stationery Payslips cost £60 for 1000 (so 6p each) Computer paper costs £5540 per annum Accommodation and overheads The Finance Department has provided you a figure of £1350 per member of staff to cover the department’s share of the rent and other head office overheads

11. © Ceridian Corporation. All rights reserved. Pay Method Costs Payment Method Cash Various charges associated with paying cash total £9,200 per annum. Cheques Bank charges of £1 for each transaction BACS Costs amount to £715 per annum

12. © Ceridian Corporation. All rights reserved. Analysis of Payroll staff costs Staff Costs On-costs EmployeeSalary% £ TotalWeekly4-WeeklyMonthlyIndirectTotal 10080050 950 572010400600 16720 Payroll Manager30000.00154500.0034500.00 Supervisor20000.00122400.0022400.008960.0013440.00 22400.00 Assistant 115000.00101500.0016500.00 Assistant 215000.00101500.0016500.00 Assistant 315000.00101500.0016500.00 9900.00 6600.0016500.00 Total95000.00 11400.00106400.0025460.0039840.000.0041100.00106400.00 Indirect (by payee)4326.3234610.522163.16 Totals 29786.3274450.522163.16 106400.0

13. © Ceridian Corporation. All rights reserved. Analysis of Associated Payroll Departmental costs Associated payroll departmental costs £ TotalWeekly4-WeeklyMonthlyIndirectTotal Computer maintenance Totals24000.008210.5314928.23861.24 24000.00 Indirect cost, apportioned by remit Stationery Payslips0.06 1003.20343.20624.0036.00 1003.20 Computer paper5540.00p.aremit5540.001895.263445.94198.80 5540.00 Totals 2238.464069.94234.80 6543.20 Accommodation & overheads 1350.00 total1890.002970.000.001890.006750.00 Indirect (by payee)198.951591.5899.47 Totals 2088.954561.5899.47 6750.00

14. © Ceridian Corporation. All rights reserved. Analysis of Payment method Pay method £ TotalWeekly4-WeeklyMonthlyIndirectTotal CashWeekly paid staff9200.00 Cheques £ 1 x 1040 cheque remits per annum1040.00 BACS £ 715 apportioned per BACS remit 671.9343.07715.00 Totals9200.001711.9343.0710955.00

15. © Ceridian Corporation. All rights reserved. Effectiveness What is the most cost effective payment method? Which of the payrolls are costing the least amount to produce? Could I reduce the weekly postage costs over the next year? How can I reduce the stationery costs of the payroll operation? If the pay frequency changed how would this impact on staffing costs? How much could be saved by providing on-line payslips?

16. © Ceridian Corporation. All rights reserved. Questions & Answers Please ask Questions

17. © Ceridian Corporation. All rights reserved. Thank you and please enjoy the rest of your sessions