Payroll AuthorizationPA Training

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Payroll Authorization(PA) Training

• Presented by
• Merenda Tate

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What this training WILL NOT Cover

• Supplemental forms
• Details of Benefit Eligibility
• Leave of Absence (LOA) processing
• Vacation or personal time allocation/usage
• Timesheet, or paycheck-related questions

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Objectives

• Before you leave this class, you should be able
  to
• Understand the process flow of the Payroll
  Authorization(PA)
• Learn the Anatomy of the Payroll
  Authorization(PA)
• Be aware of recent Form Changes
• Identify difference between Correct versus
  Incorrect PA
• Learn how to fill out the PA correctly through
  practical examples
• Understand the impact of Payroll
  Authorization(PA) to all employees
• Late PAs
• Retro PAs

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Question 1

• Can you guess how many Payroll Authorizations EIS
  processed last year?

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Answer

• 7,920

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Process Map of a Payroll Authorization
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Payroll Authorizations(PA) Processed for 2008
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Anatomy of the Regular PA
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Critical Items missed on PA

• Under the Employment Status Section
• 1. Please mark one value from each of these
  groups
• a. monthly/Salaried Staff, Faculty, Research
  Fellow, Research Associate A/B/C, hourly/hourly
  staff, Non-Union Service, Union- SEIU, Union-
  IATSE
• b. Temporary, Regular
• Reason why we need this information
• We need to know both pieces about each person in
• order to give them the appropriate benefits.

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Critical Items missed on PA contd

• Under the Section 1, Personal Data
• 1. Please include Hours/week for all staff.
• Reason why we need this information
• Without this information we cannot determine
  whether the
• person is benefit eligible.
• 2. Please make sure that the Citizenship field
  is filled out.
• Reason why we need this information
• This is critical for ensuring that we are
  complying with the appropriate
• tax laws.
• 3. Please list the Date of Birth and Social
  Security Number.
• Reason why we need this information
• Without this information listed EIS simply cannot
  enter the PA. However, the assignment and
  DartID are acceptable substitutes for SSN, with
  the exception of a New Hire PA.
• 4. List the middle name or initial (if
  applicable).
• Reason why we need this information
• You would be surprised at the number of duplicate
  names!

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Critical Items missed on PA contd

• Under Section 2, Position/Funding/Labor
  Distribution
• 1. Please list the position number if a
  regular staff employee.
• Reason why we need this information
• This helps us to ensure that we are assigning the
  person
• the correct title, grade, and department.
• 2. Please list the natural class on the
  account string.
• Reason why we need this information
• This helps us to understand what it is you are
  trying to do.
• 3. Please list the Rate of Pay and/or Salary
• Reason why we need this information
• That's an easy one!

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Critical Items on PA contd

• Under section 3, Termination Data
• 1. Please be sure to include the Forwarding
  address if the employee provides it.
• Under Section 4, Approvals, Contact Information,
  Comments
• 2. Please make sure to explain clearly the
  intended pay action in the 'Comments' section to
  ensure clarity.

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Incorrect Payroll Authorizations Example

• How they should not be filled out

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Incorrect Revised Salary PA example
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Incorrect Revised Salary PA Example
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Correct Payroll Authorizations Example

• How they should be filled out

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Correct New Hire PA Example
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Late and Retro Payroll Authorizations

• Are Late PAs really a big deal?
• Who is impacted by late and retro PAs?

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Problematic Payroll Authorizations

• New Hire
• Terms
• Rehires/New Faculty Contracts
• Full Time Equivalency(FTE)
• Status Changes

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New Hire PA

• PAs for New Hires should be received in EIS
  at least two weeks prior to the employees start
  date.
• There is negative impact if the New Hire PA is
  NOT received on time.
• HR Employee Relations Impact
• Will not begin work on day one
• No access health benefits (i.e. taking advantage
  of co-payment, urgent medical/dental service)
• No Blitz email account
• No system access to phone directory listing, ID
  badge, CorpTime, and access to secure websites.
• General employee frustration of not having any of
  the required the access, and to begin work in
  time planned.
• Retroactive Benefits(Arrearages entered in
  paychecks late and cause financial hardship)
• Payroll and Benefits Impact
• Retroactive benefits, which means arrearages must
  be manually entered into paychecks causing
  extensive work for HR Benefits
• No Benefits packet at New Employee Orientation to
  begin benefit selection
• Delayed data entry into HR system to begin record
  in efforts to pay new employee (especially in
  cases where Employee Information Services(EIS) is
  in a week processing a Biweekly payroll)

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New Hire PA contd

• There is a Positive impact if Employee
  Information Services
• (EIS) receives a New Hire PA ON time
• HR Employee Relations Impact
• No employee frustration
• Has a Blitz/email account before start date
• Will have a phone directory listing and an ID
  badge
• Access to secure websites and CorpTime
• Payroll and Benefits Impact
• Employees are paid on time
• Employees are eligible for benefits on their hire
  date, and can enroll

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Termination PA

• Term PAs should be received in EIS at least
  two weeks prior to the employees
  termination date.
• When a termination PA is late, this causes
  very serious problems for EIS, HR Benefits, and
  the employee.
• Federal and State law MANDATE that a HR Benefits
  department must provide employees with a COBRA
  notice and option to port or convert their life
  insurance when they leave Dartmouth or are no
  longer occupying a benefitted position within 30
  days of the event.
• Payroll spends .4 FTE annually on overpayment
  collections caused by late PAs. There was
  175,000 in overpayments due to late PAs in
  calendar year 2008.

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Termination PA contd

• The impact of Employee Information Services(EIS)
  receiving a Late Term PA are below
• HR Benefits Impact
• Employees prefer to have this information before
  their active insurance ends so that they do not
  go without coverage. This is especially in cases
  where an employee is seeking insurance coverage
  when going to another employer.
• If Dartmouth misses the 30-day grace period for
  issuing COBRA, Dartmouth incurs legal fines due
  to being out of COBRA compliance.
• HR Employee Relations
• No coverage, which violates employee rights under
  ERISA, and potential legal litigation.
• Delay in vacation payout (Can impact employee
  financially and create financial hardship)
• If COBRA is retroactive to the term date, the
  individual will be required to pay for any
  medical/dental services up front in order to
  receive treatment.

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Rehires and Changes to Faculty Contracts

• Rehire or Re-appointment PAs should be received
  in EIS at least two weeks prior to the effective
  date.
• Due to system limitations, the data transfer
  between the HR/Payroll system and HR Benefits
  system, does not reset employee benefits
  automatically when there was a previous
  termination in HR/Payroll system. The data is
  either removed or corrected.
• HR Employee Relations Impact
• Employee will not have benefits as the system
  still terminates it.
• Employees lose their coverage and have no
  deductions in their paychecks. (This is often
  identified when the employee calls HR Benefits
  because their check is wrong or they could not
  get a prescription)

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Changes to Full Time Equivalency (FTE)

• A change in hours or FTE has an effect on how
  much an individual pays for their
• health insurance.
• HR Impact
• When retroactive changes to FTEs are requested,
  AND the employee is decreasing hours, it causes
  problems as HR Benefits must catch them up for
  when they were receiving more money than they
  should have been.
• HR Employee Relations/Payroll Impact
• When retroactive changes to FTEs are requested,
  AND the employees is increasing hours, the
  employees are usually more anxious to receive
  their increased allotment and contact EIS to
  verify when increase is in effect and how it
  impacts their pay.

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Changes to Employee Status

• A change in employee status, such as hourly
  to monthly, or Research Fellow to Research
  Associate, affects how the benefits are paid, and
  in the case
• of researchers, how they are taxed.
• HR Payroll and Employee Relations Impact
• Changing from hourly to monthly or vice versa
  will cause manual benefit calculation and data
  entry.
• Retroactive PAs affect the employees pay much
  later and usually with a larger amount.
• When an employee is switched from Research Fellow
  to Research Associate taxation comes into play,
  particularly with Research Fellows.
• Retroactive PAs for a Fellow will cause
  substantial taxes to the employee, which can
  cause financial hardship.

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Question 2

• Can you guess which Payroll Authorizations(PA)
  are usually late?

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Answer

• Additional Payments
• Terminations
• New Hire
• Students
• Revised Rate

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Late PAs by Action
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Late PAs 2008
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Special Payroll Authorizations
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Special PA Payment Types

• Recognition/discretionary/one-time add'l
  compensation
• This payment type would be used for payments that
  are related to achievements accomplished as may
  be outlined in performance reward programs or
  specific performance related agreements.
• Relocation or signing compensation
• This payment type would be used for a sum of
  money paid to a new employee as an incentive to
  join Dartmouth. The expectation is that these
  would apply to full-time salaried employees, as
  opposed to a temporary hire and would be a
  one-time payment. The relocation amount would be
  a sum agreed upon as an up-front payment to
  assist in relocation expenses to be used at the
  discretion of the employee. Amounts reimbursed
  for relocation expenses should be managed through
  accounts payable on the appropriate expense
  reimbursement forms.

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Payment Types Contd

• Commissions
• This payment type is a monetary incentive for
  services rendered or products sold by employees
  in sales-related positions. Payments are normally
  calculated on the basis of a percentage of the
  goods sold and are generally outlined in a
  specific employment agreement.
• Faculty additional term/Add'l classes taught
• This payment type is intended to be used when a
  faculty member agrees to an effort commitment
  outside the terms of their base appointment
  agreement. These payment types have been
  commonly referred to in AS as Extra Ninths.

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Payment Types Contd

• Additional work performed
• This payment type should be used for remuneration
  for the amount of effort applied to produce a
  deliverable or to accomplish a task that was
  assigned or undertaken significantly outside the
  scope of a persons base responsibilities. The
  additional effort would be expected to have
  scheduled start and end date with specific
  results outlined. An example of this type of
  payment would be for completion of a special
  project assigned as part of a professional
  development opportunity.
• Other (not common, describe in comments section)
• If the type of payment does not fall into any
  category described above, please choose this
  payment type and clearly describe the reason in
  the comments section of the PA. You will be
  contacted by EIS for further explanation, if
  needed.

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Problems EIS Sees on Special PA

• Missing natural class
• Payment Type is not chosen
• Missing Office Location
• For Additional Payments Bi-Weekly Lump Sum
  payments- its important for EIS to have the lump
  sum questionnaire completed and attached to the
  back of the PA when submitted for backup for
  compliance
• No total payment amount listed, only monthly
  amount. EIS needs to know both to be sure of
  correct data entry.

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Additional Payment Special PA
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Student Special PA
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Comments need to state Graduate Student Stipend
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Student PA Facts

• Are usually submitted to hire Grad students who
  are being paid monthly stipends from grants
• Are for now have a payment type of 6 (EIS would
  enter those as normal procedure indicate)

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Problems EIS sees with Student Special PA

• Effective dates are not usually in sync with pay
  dates(Departments wants students to be paid
  earlier than effective date listed on PA)
• Multiple accounts will be listed, but the dollar
  associated with each account and LD percentages
  are not matched correctly

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Fringe

• Presented by
• Cheryl Josler

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What is Fringe?

• Fringe benefits are benefits which employees
  receive from their employment but which are not
  included in their salary or wages.
• They include such things as retirement
• contributions, dart flex credits, tuition
  assistance, short term
• and long term disability pay, and workers
  compensation.

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Really Big Picture
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Smaller Picture (Process Flow)

• PA is completed by Dept
• EIS Enters PA into HRMS
• Depending on the data entry, HRMS gives the
  person the appropriate benefits and designates
  the appropriate fringe rate
• Account strings are entered in Labor Distribution
• Payroll is Run
• Payroll data is sent through the LD module
  Someones total pay is distributed to multiple
  accounts
• Data is sent to the General Ledger (GL)
• Departments monitor their Discoverer and GL
  reports to see the charges
• We see the credits going into the Fringe Pool
  Accts
• Anthem, Crosby, etc get paid out of the Fringe
  Pool Accts

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Fringe Calculation Logic
Payroll Process identifies Fringe Rate to be used
No Fringe0
Yes
Fellow ?
No
Partial Fringe24.5
Yes
Statutory Fringe 9
ResearchAssociate B ?
Regular, lt 50 FTE Temporary (FT/PT)
No
No
Regular Benefits Eligible
No
Fully Burdened38
Yes
Regular No Pension
Yes
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How does the info on PA inform the process?
Regular PA
Type of Pymt 1 2 3 4 5 6
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Helping Departments Understand

• Temp Vs Regular
• Regular An employee will have regular status if
  hired into a position that is expected to last at
  least nine months in a continuing capacity, year
  after year, and the work schedule meets the
  following requirements
• Full-time - Regularly scheduled hours of 37.5 to
  40 hours a week.
• Part-time - Regularly scheduled hours of less
  than 37.5 hours a week.

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Helping Departments Understand

• Temp Vs Regular
• Temporary Employees have a temporary status if
  working on an on-call status, or when working
  either full or part-time with the understanding
  that the employment will normally terminate
  within nine months from the start date or
  completion of a specific assignment. Hours worked
  may fluctuate depending upon the needs of the
  particular department. Temporary employees are
  covered by Workers Compensation, Social
  Security, and Unemployment Compensation. They are
  not eligible for Dartmouth College fringe
  benefits. They are paid only for hours worked.

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Helping Departments Understand

• IF Regular
• Benefit Eligibility
• Regular employees are eligible for all benefits
  subject to the qualifying requirements of each
  plan, provided they are working at least twenty
  (20) hours each week, in positions of at least
  nine (9) consecutive months duration each year.
  When working less than full-time, regular,
  benefit eligible employees receive pro-rated
  benefits according to their percent of working
  full-time.
• Temporary employees, and regular employees
  working less than twenty (20) hours per week, or
  less than nine (9) months duration each year, are
  not benefit eligible, but are eligible for
  Workers Compensation, and can elect a
  Supplemental Retirement Account. In addition,
  regular employees who are not benefit eligible
  are covered under Travel Accident Insurance.

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Group Activity

• Payroll Authorization Scenarios

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Scenario 1

• Ice Cream is due to start working with
  Dartmouth in the Treat Department effective
  3/15/2009 as an hourly Temporary employee. He
  will be making 15.00 an hour with charges going
  to GL account 00.000.000000.000000.0000.6182.
•  
• Please complete the Payroll Authorization for
  this action.

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Scenario 1 Answer
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Scenario 2

• Might Fine Superstar is going to change from a
  Research Associate B to a Research Associate C in
  Red Carpet Department effective 4/1/09.
•  
• Please complete the Payroll Authorization for
  this change.

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Scenario 2 Answer
Fill out if staff
Fill out if Faculty, Fellow, or RA
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Scenario 3

• Rub R Stamp is currently a Faculty member with 2
  Regular assignments, one is in the Pad Department
  and the other is in the Ink Department. The Pad
  Department wants to change Rubs monthly amount
  of pay due to an FTE change of .25 to .50. The
  new monthly salary will be 4600.57 a month
  effective 4/1/09.
• Please complete the Payroll Authorization for
  this action.

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Scenario 3 Answer
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Scenario 4

• Knuck L Sandwich is getting another Non-Exempt
  temporary job on campus that is to start on
  4/21/09 with the Right Hand Department. He will
  be making 11.00 an hour to GL String
  00.000.000000.000000.0000.6182. This is in
  addition to his normal hourly assignment in the
  Left Hand Department.
•  Please complete the Payroll Authorization for
  this action.

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Scenario 4 Answer
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Scenario 5

• Butter Ball has given notice of resignation in
  the Perdue Department effective 5/1/09 and has
  accepted another position on campus in the Oven
  Department effective 5/3/09.
• Please complete a Payroll Authorization for each
  department for this action.

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Scenario 5 Answer
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Scenario 5 Answer Contd
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New Form Changes

• Payroll Authorization
• Removal of Going on LOC/Return from LOC pay
  action
• Special Payroll Authorization
• Addition of Payment Types
• Recognition/discretionary/one-time additional
  compensation
• Relocation or signing compensation
• Commissions
• Faculty additional term/Additional classes taught
• Additional work performed
• Other (not common, describe in comments section)
• Removal of End Date on Regular PA

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Where to find the PA Forms
Select PA in this section
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How Do I stay Informed?

• Our Website
• Http//www.Dartmouth.edu/control/payroll

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How can I find out about Deadlines?
Select Payroll Schedules
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Biweekly Yearly Pay Schedule
Deadline
Deadline
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Monthly Yearly Pay Schedule
When reports are sent to departments
Double payroll run
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Monitoring EIS Blitz Bulletin
Select Employee Information Services
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Monitoring EIS Blitz Bulletin
Up-to-date Topics
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Who do I contact in EIS?
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Methods of Contact to EIS

• Phone
• 603-646-2697
• Email
• EIS_at_Dartmouth.edu

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Questions?
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THANK YOU for Coming!