CONTROLLERS OFFICE Payroll Advancements

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CONTROLLERS OFFICEPayroll Advancements

• Presentation to FAIC
• May 26, 2005

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CONTROLLERS OFFICEPayroll Advancements
Advancements in Payroll Operations

• Mandatory Direct Deposit September 2005
• Electronic Delivery of Pay Stubs October 2005
• Kronos Time Keeping System for Monthly Employees
  February 2006
• Combine Pay Cycles March 2006
• Eliminate Supplemental Cycles March 2006

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CONTROLLERS OFFICEPayroll Advancements
MANDATORY DIRECT DEPOSIT

• SC Code Section 41-10-40
• Direct Deposit may be mandatory if
• - Deposited in a South Carolina financial
  institution
• - Statement of Earnings Withholdings
• - At least one withdrawal for each deposit
  free of service charge

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CONTROLLERS OFFICEPayroll Advancements

• MANDATORY DIRECT DEPOSIT ADVANTAGES
• Reduction in the number of printed checks
• Elimination of distribution costs of printed
  checks
• No bank visit required for the employee
• No lost or damaged checks
• Faster deposit for employees
• Reduction in theft and fraud

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CONTROLLERS OFFICEPayroll Advancements
DIRECT DEPOSIT CURRENT
Employees Not on Direct Deposit 382 Employees
on Direct Deposit 4,187
Non-direct deposit employees 8.4
Direct deposit employees 91.6
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CONTROLLERS OFFICEPayroll Advancements

• ELECTRONIC PAY STUBS
• SC Code Section 41-10-30
• Elimination of Pay Stub Permitted
• - Employee must be able to retrieve the
  information

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CONTROLLERS OFFICEPayroll Advancements

• ELECTRONIC PAY STUBS ADVANTAGES
• Available to the employee earlier than printed
  pay stubs
• Employee may view and print stubs for 3 prior
  calendar years
• Convenience Pay stubs may be viewed anytime on
  campus

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CONTROLLERS OFFICEPayroll Advancements

• ELECTRONIC PAY STUBS ADVANTAGES CONT.
• Added security for stubs
• Reduce the number of pay stubs that require
  printing
• Reduce distribution costs of printed stubs

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CONTROLLERS OFFICEPayroll Advancements
ELECTRONIC PAY STUBS CURRENT

• Over 91.6 of employees use direct deposit of
  payroll
• Employees still receive printed deposit advices
• Close to 90,000 stubs are printed per year.

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CONTROLLERS OFFICEPayroll Advancements
ELECTRONIC PAY STUBS How are they delivered?

• Log into MyRecords using MUSC MNA Account

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CONTROLLERS OFFICEPayroll Advancements
ELECTRONIC PAY STUBS How are they delivered?
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CONTROLLERS OFFICEPayroll Advancements
MNA ACCOUNTS Employees Without an MNA Account -
290 (6.3) Employees With an MNA Account -
4,279 (93.7) Total Number of University
Employees 4,569
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CONTROLLERS OFFICEPayroll Advancements
COMMUNICATION PLAN

• Meet with Business Managers - Notice on pay
  stubs
• Send e-mails - Departmental notices
• Broadcast - Catalyst
• Correspondence to home address - Flyers/posters

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CONTROLLERS OFFICEPayroll Advancements
IMPLEMENTATION PLAN

• Free checking available at six local banks

• Wachovia - Carolina First
• Bank of America - BBT
• First Citizens - SC Federal Credit Union

• Payroll/Bank/IT Fair for employees on campus

- June 16 17 - July 22 25
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CONTROLLERS OFFICEPayroll Advancements
KRONOS TIME KEEPING SYSTEM FOR MONTHLY EMPLOYEES

• 1,738 Bi-weekly employees
• 2,831 Monthly employees
• Eliminates manual data entry in Payroll Office
• All employees on Bi-weekly pay cycle

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CONTROLLERS OFFICEPayroll Advancements
KRONOS TIME KEEPING SYSTEM - AVAILABILITY

• Need to purchase connect licenses for two
  interfaces
• Quote has been requested should be reasonable

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CONTROLLERS OFFICEPayroll Advancements
CURRENT PAY CYCLES
? 26 Biweekly ? 12 Monthly ? 26
Supplemental ? 64 Total COMBINING PAY CYCLES ?
26 Biweekly
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CONTROLLERS OFFICEPayroll Advancements
COMBINING PAY CYCLES
Three Bi-weekly Pay Cycles Per Month August
2005 March 2006 Proposed Implementation
Date August 2006
February 28, 2006 Final monthly paycheck
distributed Three months notice to employees
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CONTROLLERS OFFICEPayroll Advancements
ESTIMATED ANNUAL COST SAVINGS Payroll Personnel
Savings - 150,000 Department Personnel Savings -
90,000 Paper Costs - 5,000 Total Annual
Savings 245,000