Pension Payroll & Employee Benefits. Employee & Retiree Benefit and OMERS Pension Compensation. Non- OMERS Pension Plans

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1 Office of the Treasurer Accounting Services Revenue Services & Employee Benefits Employee & Retiree Benefit and OMERS Compensation Non- OMERS Plans Employee Benefits & OMERS City Sponsored 3rd Party Payments and Compliance 3rd Party Payments and compliance Deduction & 3rd Party Compliance Management Benefit & Management Shaded boxes reflect the activities covered in this section of the report. The objective of Services is to ensure that employees are paid accurately and on time with the correct employee withholding and deduction amounts and City contributions remitted within specified timeframes.

2 13 Performance Measurement And Benchmarking Report Question Indicator/Measure Internal Comparison of Toronto s 13 vs. 1 Results Customer Service Measures External Comparison to Other Municipalities (OMBI) By Quartile for 13 Chart & Page Ref. How often do manual payroll payments have to be issued? Number of Off-Cycle Manual Payments per FTE (Customer Service) % of all Payments that are Manual Payments (Customer Service) Number of manual payments is low and Percentage of manual payments is low and Lower rate of manual payments compared to others.1. pg 3.1 pg.3 Efficiency Measures What does it cost to process a payroll cheque or direct deposit? Operating Cost per Direct Deposit and Cheque Increase Cost per cheque/deposit increased Higher cost per cheque/deposit compared to others.3. Pg. How many cheques or direct deposits are processed by each payroll employee? Number of Direct Deposits and Cheques per FTE Number of cheques/deposits per FTE is Higher number of cheques/deposits per FTE compared to others.5.6 pg.5 Service Level Indicators (Resources) Performance Measures (Results) Service Level Indicators (Resources) Performance Measures (Results) Overall Results - Favorable Unfavorable - 1st quartile - nd quartile - 3 rd quartile 1- th quartile 75% favorable or 67% above median For an explanation of how to interpret this summary and the supporting charts, please see the Guide to Toronto's Performance Results. These quartile results are based on a maximum sample size of 1 municipalities.

3 # manual payments per payroll FTE % of total payments that are manual payments Services 13 Performance Measurement and Benchmarking Report How often do manual payroll payments have to be issued in Toronto? # manual cheques per FTE % manual payments.%.5%.19%.1%.16%.17% Chart.1 (City of Toronto) Number of Off-Cycle Manual Payments per FTE and % of all Payments that are Manual Payments (Customer Service) How does Toronto's rate of manual payroll payments compare to other municipalities? Median = 6 Chart. (OMBI 1) Number of Off-Cycle Manual Payments per FTE (Customer Service).3%.5%.%.15%.1%.5%.% Lon Niag Halt Wind Tor Ott Wat York Sud T-Bay Dur Winn Ham Cal # manual cheques per FTE Municipalities strive to process all payroll direct deposits and cheques during regular payroll cycles, to minimize inconveniences to employees. Making manual payments (cheques or direct deposits) that are outside the normal payroll cycle is very inefficient. Off-cycle manual payments include payments for adjustments and reversals that result in a change to net pay. They can provide some indication of the accuracy and timeliness of payroll processes. Chart.1 provides the number of manual off-cycle payments that were made in Toronto between 8 and 13 per payroll full- time equivalent (FTE) employee, which are represented as columns relative to the left axis. These results have remained fairly over this period. In 13 these manual payments represented only.17% of all payments made, reflected as a line graph relative to the right axis. When compared to other municipalities, Toronto's ranks fifth of fourteen municipalities (second quartile) in terms of having the lowest rate of manual payments as reflected in Chart.. 3

4 13 Performance Measurement And Benchmarking Report What does it cost in Toronto to process a payroll cheque or direct deposit? $7. $6. $5. $. $3. $. $1. $. Chart.3 (City of Toronto) Operating Cost per Direct Deposit and Cheque How does Toronto's cost to process a payroll cheque or direct deposit compare to other municipalities? $6. $5. $. $3. $. $1. $ $cost / deposit or cheque $5.78 $5.88 $6.5 $5.56 $5.65 $5.97 Lon T-Bay Winn York Dur Ham Cal Niag Wat Sud Ott Tor Wind Halt $cost / deposit or cheque $.83 $.88 $3.1 $3.67 $3.7 $.1 $.6 $.51 $.67 $5. $5.86 $5.97 $6.59 $7.5 Chart. (OMBI 1) Operating Cost per Direct Deposit and Cheque How many cheques or direct deposits are processed by each payroll employee in Toronto? 5, 3, 1, 19, 17, 15, Median = $ # deposits or cheques / FTE,955,5 3,5 3,79,81,7 Chart.5 (City of Toronto) Number of Direct Deposits and Cheques per FTE How does the number of cheques or direct deposits processed by payroll employee in Toronto compare to other municipalities? 3, 5,, 15, 1, 5, Median = 3,16 Dur Cal T-Bay Ham Winn Wat Tor York Halt Ott Niag Lon Sud Wind deposits or cheques / FTE 31,7 9,73 7,835 7,555,61,981,7,357 1,81 16,379 15,771,96 1,57 11, Chart.6 (OMBI 1) Number of Direct Deposits and Cheques per FTE Charts.3 to.6 provide information on two different measures of payroll efficiency and productivity: The payroll operating cost to process a direct deposit or cheque; and The number of payroll direct deposits and cheques that are processed by each full time equivalent (FTE) payroll employee. Chart.3 provides Toronto s operating cost per payroll direct deposit or cheque from 8 through 13 and shows that costs increased in 13. In relation to other municipalities, Toronto's 13 cost per direct deposit or cheque ranks twelfth of fourteen (fourth quartile) in terms of the lowest cost, as shown in Chart.. Chart.5 provides the number of direct deposits and cheques, (including manual cheques) that were processed from 8 through 1 per payroll FTE. Results were in 1. As shown in Chart.6, Toronto ranks seventh of fourteen (second quartile) in terms of having the highest numbers of direct deposits and cheques (including manual cheques) processed per payroll FTE.

5 13 Performance Measurement and Benchmarking Report 1 Achievements and 15 Planned Initiatives The following initiatives have improved or are expected to further improve the efficiency and effectiveness of the, and Employee Benefits Division: 1 Initiatives Completed/Achievements Commenced the project to implement Manager Self Service functionality and automate Employee Self Service/Manager Self Service life cycle functionality. Produced 3 rd party mandatory, statutory and legislated remittances, accurately and on time, 1% of the time, during Initiatives Planned Implementation of employee self service platform and roll out to unionized employees, implement Manager Self Service functionality and automate Employee Self Service life cycle functionality. Commenced the project to upgrade the City's current SAP payroll system to the current SAP standard/best practices Cross Application Time Sheet (CATS) and implement a new Time and Attendance Scheduling Solution (TASS) for two pilot divisions. Commenced the project to implement changes arising from the, & Employee Benefits Program Review. Factors Influencing the Results of Municipalities The results of each municipality included in this report can be influenced to varying degrees by factors such as: Organizational form: centralized versus de-centralized nature of time and data entry. Costs related to time and data entry have been excluded for comparability. Any costs associated with benefits administration and employee master data maintenance/administration have been excluded from these results and included in those of Human Resources for benchmarking purposes. Policy and practices: provision of this service in-house vs. contracted and differences in payroll structure and responsibilities. Processes: differences in the number of pay periods (e.g., weekly versus bi-weekly, requirements for multiple pay schedules for various groups within the organization). Staffing mix: salary vs. hourly rate and/or part-time vs. full time employees and the associated level of support required. Number of union contracts: the number of unions, contract settlements resulting in retroactive payments, complexity of the collective bargaining agreement terms and corporate policies may be a factor in the creation of replacement cheques and demand for service. 5