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How to Keep Your HCM Data in Tip Top Shape
Kelly Sprekelmeyer, Customer Service Manager, PlanSource HCM
Agenda
2
What is HCM Data?
Potential Impact of Bad Data
Common Pitfalls of HCM Data
Your Data is Clean! Now What?
3
The term HCM Data includes all data related to the
employee life-cycle, from recruiting to off-boarding
and every milestone in between.
Your HCM data must be constantly reviewed for
integrity and accuracy.
Employee PromotedJob Changes Incomplete
Supervisor Updates
RequiredUpdate Cost
Centers
Org ChartsGeneral Ledger &
AccountingAnalytics &
ReportingApprovals Access to Sensitive
Data
Access to
Restricted
Programs and Files
The Potential Impact of Bad Data
The Potential Impact of Bad Data
Employee PromotedJob Changes Incomplete
Supervisor Updates
RequiredUpdate Cost
Centers
Org ChartsGeneral Ledger &
AccountingAnalytics &
ReportingApprovals Access to Sensitive
Data
Access to
Restricted
Programs and Files
The Impact of HCM Data on Your Business
9
Inaccurate or incomplete HCM data can negatively impact all aspects of your business:
Clean and accurate HCM data can increase payroll efficiency, decrease compliance issues, impact
employee retention, ensure proper security and influence company strategy.
Payroll Accuracy Compliance People Analytics Security Company Strategy
10
Common Pitfalls of HCM Data
• Company Mergers and Acquisitions
• Corporate Structure Changes
• Employee Job Classifications
• Benefit Plan Compliance
• Sick Leave Compliance
• Tax Registrations and Configuration
• E-Verify and I-9 Compliance
12
Mergers and Acquisitions
• Companies often fail to involve HR and Payroll experts in the early phases of a merger or acquisition plan.
• Equifax Workforce Services
• American Payroll Association
• Society for Human Resource Management
• Employment/Tax Attorneys
• HCM/Payroll Vendor
13
Mergers and Acquisitions
• Carry over of FICA, FUTA and SUTA wages
= savings up to $10,000+ per employee.
• Failure to reach out to state agencies can
result in fines for “SUTA” dumping, even if
unintentional.
• Moving wages to the correct FEIN due to
the wrong start date can require hundreds
of hours processing corrections.
PlanSource HCM customers have access to our
partner Equifax to provide consultation and
recommendations based upon your company’s
unique needs.
They can even handle paperwork with employment
and tax agencies. All of these services are offered at
a considerable savings compared to attorneys’ fees.
14
Corporate Structure Changes
Company name changes
Relocation of corporate headquarters
Opening new or remote locations
Change in named officers
Change in company or corporation type
15
Corporate Structure Changes
Submit changes to local, state and Federal agencies
Update HCM profiles with new company information
Create new work location profiles & taxes for affected employees
Notify payroll provider to obtain new Powers of Attorney
PlanSource HCM offer access to HR Answers Now – a comprehensive HR and Payroll knowledge database powered by Wolters Kluwer
• Under FLSA, employees must meet a job duties test to be classified as exempt from overtime.
• EEOC requires employees be properly classified for annual compliance reporting
• Workers Compensation insurance requires that employees are coded to the correct classification for
insurance purposes based upon their job duties
16
PlanSource HCM houses these classifications at the Job Code level to help you remain compliant, and offers robust reporting features to meet your annual requirements.
Best Practice: Run reports within your HCM system to review and correct classification data at least annually, or after any major company restructure.
Employee Job Classifications
17
Benefit Plans and Compliance
• Are your life events compliant?
• Are you reviewing and approving Evidence of Insurability submissions by your employees regularly?
• Are you monitoring employee hours, offers and coverage costs to ensure compliance with the Affordable Care Act?
• Do you know your eligibility drivers for your plans?
• Are your export files complete and being sent timely to carriers with enrollment and change data?
• Are your benefit deductions feeding into payroll accurately?
18
PlanSource HCM offers a comprehensive HCM,
Payroll and Benefits solution offering:
• Single system of record for employee data
• Real-time API data feed of demographic data
• Real-time API data feed of benefit deduction
data
• ACA payroll data integration
• Industry-leading reporting features
• Dependent audits available
Leveraging a comprehensive HCM, Payroll and Ben Admin tool with a single data entry point helps keep your data
clean
Benefit Plans and Compliance
19
Sick Leave Compliance
*Note this list of locations may not be inclusive and is meant to be demonstrative of the many variations each state and locality may have regarding sick leave. Please check with your local or state agencies for more guidance.
• If you have employees working in one of these
locations*, there are special rules regarding paid and/or
unpaid sick leave for your employees.
• Be sure to choose an HCM provider who can support the
various regulations
• PlanSource HCM provides all of the tools required to
keep your plans compliant
Do you operate in any states or cities with Sick Leave Laws?
20
Sick Leave Compliance
Don’t underestimate the basic tools at
your disposal
• Research and bookmark organizations
who follow employment and labor law in
your state(s)
• Set up Google Alerts for articles pertaining
to paid sick leave laws
• Sign up for and read newsletters or alerts
from trusted payroll providers
21
Tax Registrations and Configuration
Ask your current HCM vendor for more information on tools that may be at your disposal.
• Review and approve ALL employee address
changes and their potential tax impact
• Work locations should be defined as the
physical addresses where your employees
perform work.
• Register with every payroll tax agency where
your employees perform work.
• Ensure new hires are being reported to the
appropriate states
22
Tax Registrations and Configuration
• PlanSource HCM offers a powerful geo-location
tool
– Verify addresses as they are entered
– Suggest taxes based upon verified address
– Reports show recommendations vs.
selection
• PlanSource HCM handles all New Hire
Reporting requirements for all states of operation
• Offers workflows to require Admin approval on
ANY employee changes made in the system
before taking effect.
23
E-Verify and I-9 Compliance
• I-9 audits are performed by Immigration and
Customs Enforcement (ICE)
• The average penalty assessed to an employer
following an audit = $25k-$28k
• No space can be blank. It must be filled out with
N/A if it does not apply.
• Errors require a new form. Nothing can be
crossed out or corrected.
• The employer’s designee who signs the form must
see original forms of ID.
24
E-Verify and I-9 Compliance
• E-Verify is a FREE internet-based system provided through the US Dept. of Labor that verifies identity and employment eligibility.
• Only 10% of all employers leverage this free tool today
• Only employers who use E-Verify can require an SSN on the I-9 Form
• Several sources indicate E-verify will be mandatory for ALL employers in the next 2-3 years
• PlanSource HCM customers using our integrated Applicant Tracking & OnBoarding have access to E-Verify as part of the online hiring process.
26
Audits and Reporting Made Easy
Compliance Reporting Automated
• New Hire Reporting
• EEOC-1 Reporting
• VETS Reporting
• Worksite Reporting
• ACA Review and Filing
Required and Potential Audits are a Snap!
• 401(k) Discrimination Testing
• 401(k) Plan Audits
• I-9 Audits
• Workers’ Compensation Audits
• …and more!!
27
Get Bells and Whistles for Your HCM Data
27
• Talent Analytics: retention
and high performers
• Interactive org charts
• Total compensation
statements
• Real-time ACA
measurement & offer
automation