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THE EXAM ?

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Payroll Systems & Technology

Overview• Objectives of a Payroll System• Integration vs. Interfacing• Hardware and Software• Selecting a System• Implementing a System• Evaluation, Security and Controls• Disaster Recovery• Automated Time and Attendance• Self Service and the Internet

Objectives of a Computerized Payroll System

• Who are the Customers?– The employees it pays– Other departments in the company– The company’s upper management– The federal, state, and local government agencies to whom

withheld income and employment taxes, child support payments, etc., are paid and /or reported.

• What are the needs?– Compliance– Timely & accurate paychecks, direct deposits and other

disbursements– Maintain accurate records– Prepare internal reports– Guarantee the security of the system

Interface or Integration?• What is an Interface?

– Place where two systems meet• What is Integration?

– Shared data base• What are some common interfaces?

– HR/Payroll/Benefits/Time & Attendance/Banking/– SS

administration/Unemployment/Budgets/Accounting• Why have interfaces or integration? How do

they improve the process?– Streamlines processes– Provides a secure database for an implementation of

an employee and or manager self service application– Integration can make information more accessible

and accurate.

Hardware Choices

• Service Providers– Advantages/Disadvantages– ASP– SaaS

• In-House Operations– Advantages/Disadvantages

Selecting a System

• Decisions to be made• Building a project team• Analyze system needs• Define Objectives• Define Requirements

Selecting a System

• Prepare an RFP/RFQ– What is an

RFP?– What’s in an RFP?

• Demo the system– Be thorough

• Things to avoid

Implementing

• Preparations• Training• Gap Analysis• Converting old data to new• Testing the system• Conversion

Steps After Go-Live

• Evaluating system performance• Controls• Documentation• Security• Disaster recovery

The Future is Here

• Automated Time & Attendance

• The New Wave –

ESS & MSS

Implementing Internet Technology

• Client Software• Server Software• Type of TCIP (Transmission

Control Protocol/Internet Protocol)

BREAK TIME

Managing a Payroll Department

Section 13

OVERVIEW

• Basic Management Theory• Team Building• Performance Evaluations

Basic Management Theory

• Payroll Manager’s Duties– Vastly different from previous position

• No longer hands on processing

– Responsible for:• Planning, Staffing, Training, Evaluating,

Counseling, Delegating, Recognizing, Reporting

Plan Budgets, Guarantee Compliance, etc…

HERSEY, BLANCARD, & JOHNSONMANAGEMENT STYLE

– Situational Leadership • Based on how Manager handles two factors:

– Task Behavior (Guidance)• High Task

– Priority on Control Over:» Lines of Communications» Work Procedures» Patterns of Communication

– Relationship Behavior (Support)• High Relationship

– Few Restrictions on Communications» Seeks Support and Friendship» Wants Staff to Accept Responsibility» And Reach Full Potential

Different Combinations Led to 4 Different Styles

HERSEY & BLANCARDSITUATIONAL LEADERSHIP

• Supporting– Low Task/High Relationship

• Delegating– Low Task/Low Relationship

• Coaching– High Task/ High Relationship

• Directing– High Task/Low Relationship

STEPHEN COVEYMANAGEMENT STYLE

Principle-Centered Leadership

- Integrity

- Justice

- Golden Rule

COVEY4 Fundamental Dimensions

• SECURITY– Collective Sense of Strength and Self Esteem– Focuses on Strength of Contribution– Answer a series of 4 questions:

• How well do you do our jobs?• Do we provide accurate information?• Is our final product accurate?• Do we serve our customers well?

• GUIDANCE– Direction on which we base our decisions and actions.• Emphasize on integrity, honesty and fairness

• End result will be equitable.

COVEY4 Fundamental Dimensions Continued

• WISDOM– Ability to maintain balance and perspective among diverse

internal and external forces that influence the organization’s reality.

– Manager must have the ability to:• Acquire, sort, filter and provide information• Maintain a high level of competence and effectiveness within department

• POWER– Energy to decide, act and change– Power = To accomplish the task at hand regardless of external

conditions.

COVEY

• Summary of Principle-Centered Leadership

• Treat People The Way You Want To Be Treated!

EMPOWERMENT

• Empower Employees

– 5 Steps to Empowerment• Establish Desired Result• Provide Guidelines• Identify Resources available• Hold People Accountable• Identify Consequences

Management Skills

• Strategic Planning/Organizing• Staffing• Giving Directions• Controlling Progress• Reporting

Strategic Planning and Organizing

• Define Goals and Objectives– Not the same as tasks

• Define Timeframe– Time to complete or achieve goal

• Define Subtasks– Break into subtasks with own deadlines

• Analyzing Available Resources– What resources are available to achieve goal

• Evaluate Costs– Budget Constraints

STAFFING

• HIRE THE RIGHT EMPLOYEE– Pre-hiring Analysis– JOB DESCRIPTION

• Lists Duties and Responsibilities• Technical and Performance Skills• Educational/On Job Experience• Training Opportunities• Level of Supervision Required• Communication and Interaction with Others

– Recruiting– Interviewing– Testing - KAC

STAFFING

• Delegating…– Assign Responsibility– Assign Authority– Hold Staff Accountable– Strike a Balance

• Training– Improves Skills NOT Attitudes

Directing• Provide Feedback!

– Focus on Mission– Ignore Annoying Behavior– Do Not Personalize – Keep Feedback Current– Base on observations not hearsay– Be Specific– Praise– Listen

Directing Continued• Coaching

– Helps improve knowledge and skills– One on One Meetings– Deals with Performance

• Counseling– Personal or Attitude Problems affecting job

• Leadership– Provided to the Group– Vision, Support, Building Partnerships– Accepting Responsibility, Decision, Example

Controlling Performance• CONTROLLING

– Set Standards– Monitoring Actual Progress– Compare Progress with Standards– Taking Corrective Actions

• MOTIVATING– Money– Achievement– Leadership– Affiliation– Recognition

REPORTING• Types

– Legislative, Labor Costs, Annual Wages– Variances, Departmental

• Important Points in Reporting– Give information needed to make decision– Timely– Write Clearly and Brief– Leave out payroll jargon– Tools

Meetings

• Plan• Prepare

– Agenda– Consider Time

• Keep On Track• Participation• Record

MEETINGS

• TYPES– Informational

• Emphasis on Presentation

– Opinion Seeking• Emphasis on Questions and Opinions

– Problem Solving• Agreement on best course of action

– New Ideas• Brainstorming

Written Policies and Procedure

•Proper Documentation Ensures•Uniformity•Simplifies Training•Provides Reference

CRISIS

• Prevent– Proactive

• Manage– Remain Calm

• Lessons Learned– Successful/ Not Successful Results– Prevention for Future

• Positives From Crisis– Share with your supervisor– Assess your staff under pressure– Use to build team spirit

TIME• Management

– Urgent/Important• Crisis management, Immediate attention

– Not Urgent/Important• Planning and Prevention Activities

– Urgent/Not Important• Pressing activities that may be easily

accomplished

– Not Urgent/Not Important• Easily accomplished, Time Wasting Activities

Team Building

• Characteristics of a Successful Team– Clear specific goals– Relaxed and Open atmosphere– Listening without Judging – All are responsible– Networks that can be shared– Diversity

TEAMS

• 4 STAGES OF DEVELOPMENT 13-24– Forming– Storming– Norming– Performing

• NEEDED DIVERSITY– Contributors– Collaborators– Communicators– Challengers

EVALUATIONS

• EFFECTIVE– Objective Job Related Goals– Performance Based

• Observable Behavior and Results• Clearly Communicated in Writing

– Will Deliver Feedback in proper way– Provide Written Guidelines for evaluation process– Employee Must Have Input – can challenge items– Does not place unreasonable technical or time constraints

• INEFFECTIVE– Manager should not feel guilty over negative evaluation– No accountability for how Manager evaluates staff– Improper application of standards

CUSTOMER SERVICE• What is Customer Service

– Reliability– Responsiveness– Assurance– Empathy– Tangibles

• Physical facilities, equipment and appearance

• How to Instill Customer Service– Role Play– Case Studies

• SHARED SERVICES– What is it

Laws/Regulations/Policies• Internal Revenue Code• American Payroll Association• Congressional Record• SSA Web Site• State Government• Newsletters• Employment Law and Regs

– FLSA Issues, Garnishments, FMLA• Payroll Websites

– http://www.westmichiganapa.org/• Company Policy and Procedures

UNION

• Contracts– Dues– Fringe Benefits– Layoffs– Wage Increases– Probationary Employees– Overtime/Premium Pay

• Maintain Copy• Read• Establish

– Procedures– Schedules

The End

• Remember – Study hard– And if you don’t - take the test anyway

• Use a study buddy– And if you don’t – take the test anyway

• Practice testing over and over– And if you don’t – take the test anyway

• Practice the calculations– Just do it

• Try to understand the concepts.

BREAK TIME

Questions ?

It’s Group Project Time !

Discussion Time

Prior Topics

Topic this week

Any questions on:

Next Class August 28th

Section 14

Luanne Brown

Payroll for employees working

abroad

Final Class

• Last class will be held on September 4th

• Post test • Q&A time to help prepare for exam• Bring your questions