13.0 On Cycle Payroll Narrative HR & Payroll Business Process Redesign (BPR)

Transcription

1 13.0 On Cycle Payroll Narrative HR & Payroll Business Process Redesign (BPR) BPR Narrative for: 13.0 On-Cycle Payroll Processing 11/9/2012 FINAL

2 University of Washington HR & Payroll Business Process Redesign (BPR) Narrative: 13.0 On-Cycle Payroll Processing Table of Contents A. Introduction... 3 Process Overview 13.0 On-Cycle Payroll Processing... 3 Process Design Guiding Principles... 4 General Assumptions... 5 B. Process Improvement Opportunities... 5 C. Role Definitions D. Key Terminology E. High Level 13.0 On-Cycle Payroll Process F On-Cycle Payroll Process Summary Process Definition Process Flow Process Narrative Collect Pay Data Inputs Process Narrative Apply Payroll Withholding Rules Process Narrative Process Gross to Net Payroll Process Narrative Execute Post Pay Tasks HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 1

3 Process Narrative Complete Tax Payments Process Narrative High Level Employee Payroll Data Process Narrative Complete Initial Data Entry Process Narrative Make Payment Election Process Narrative Direct Deposit Process Process Narrative Enter Employee and Tax Information Process Narrative Execute Foreign National Process Process Narrative Change Residence or Work Address Process Narrative Update Foreign National I Process Narrative Rehire Process (Payroll Impacts) Process Narrative Deceased Employee Process (Payroll Impacts) Process Narrative Set-up Involuntary Deduction Process Narrative Amend Involuntary Deduction Process Narrative Terminate Involuntary Deduction G. Key Performance Indicators H. Current Metrics I. Interfaces J. Integrations K. Rules, Regulations, Policies and Laws L. Process Deviations M. Unresolved Decision Points N. Change Impact of Moving to Future State O. Narrative Acceptance HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 2

4 Process Overview A. Introduction This Business Process Design document will describe the future state business processes for the On-Cycle Payroll Processing component of the Human Resources / Payroll Business Process Redesign effort by providing activity diagrams and contextual information around each of the activities within the diagram. The activity diagrams will outline the sequence of activities and tasks that perform a specific business function. The core objectives of this Process Design Document (PDD) narrative document are to: Document the future-state processes for On-Cycle Payroll Processing Define the roles and responsibilities associated with the future-state process design Identify the organizational implications resulting from the process improvement Document and track open issues resulting from the development of the Process Design Document Process Overview 13.0 On-Cycle Payroll Processing On-Cycle Payroll, 13.0, processes cover the activities involved with the overall On-Cycle Payroll Processing, Employee Payroll Data, and Involuntary Deduction activities. The following lists the processes that are covered in this narrative. The payroll process runs in a repeating cycle, semi-monthly. On-cycle payroll will be fed by a time and leave attendance system(s) On-Cycle Payroll Processing On-Cycle Payroll Process Summary Collecting Pay Data Inputs Apply Payroll Withholding Rules Processing Gross to Net Payroll Execute Post Pay Tasks HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 3

5 Complete Tax Payments Employee Payroll Data High Level Employee Payroll Data Complete Initial Data Entry Make Payment Election Prenote Process Enter Employee and Tax Information Execute Foreign National Process Change Residence or Work Address Update Foreign National I Rehire Process Deceased Employee Process Involuntary Deduction Involuntary Deduction Process Summary Set Up Involuntary Deduction Amend Involuntary Deduction Terminate Involuntary Deduction Process Design Guiding Principles We followed a number of guiding principles to inform the design of the future state processes. These guiding principles help with decision making. Keep the end user in mind by being effective, efficient, and practical Design for future flexibility and not for history Encourage process standardization where possible Be efficient by eliminating process redundancies (E.g., 7 levels of approval) Develop processes based on university wide decisions HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 4

6 Avoid defining processes that will lead to customization of the HR/payroll system where possible General Assumptions The following is a list of general assumptions used to gather information and design the future-state business processes: Items on Technology future functionality will be considered in process discussions Business Process Design is iterative; later phases will drill to further detail Processes are reviewed by the appropriate subject matter experts as indicated by the university Whenever possible, the default approach is to leverage the use of Technology as much as possible The scope of the On-Cycle Payroll process design workshop encompasses activities related to the annual and standard activities associated with On-Cycle Payroll processing: Integration points between other departments and the payroll office will be clearly defined (i.e. HR, Benefits, Compensation, etc.) Regulations and rules are incorporated timely and may feed from other departments to Payroll (e.g. new federal legislation, foreign national tax treatments, involuntary deduction ordering, etc.) Specifics related to granular job profile details and the re-classification processes are not the focus of the Payroll processes B. Process Improvement Opportunities The proposed future state On-Cycle Payroll Business Process is intended to help address many of the pain points associated with the current process: Area Current Inefficiencies Benefits in the Future State Processing Efficiency and Duplicative data entry and late reporting lead to Allows for employees to be in the system prior to payroll Accuracy inefficiencies and processing delays processing periods HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 5

7 Errors in employee pay data information leads to time consuming retropayment activities Excess time spent on foreign nationals and out of state employees paperwork leads to potential errors and delays Limited or lack of technology leads to inefficiencies in time collection and approvals; majority of campus departments collect time using paper timesheets Lack of integrated systems for time and leave creates downstream impacts such as overpayments through unreported leave, continued payments for appointments and distributions that should be ended for separated employees. Allows employees various payment elections (Paycard, direct deposits to multiple accounts, if necessary) Streamlines the workflow by having formalized On-Boarding Separations processes in place to address W-4, I-9, W-2, and foreign national paperwork Decreases the amount of foreign national paperwork rejections caused by inaccurate data at onboarding Automatic notifications of employees that are out of state or country allow for accurate application of appropriate tax structures (i.e. FICA, tax treaty benefits, withholdings, etc.) Increases efficiency in calculating voluntary and involuntary deductions resulting in less manual corrections HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 6

8 Reviews and Approvals Inability to conduct mass data changes (payment changes, settlements, onetime payments) Tax elections are not updated for employees that move in or out of state Manual processing of involuntary deductions Cumbersome processes with reviewing, validating, and approving data leads to lengthy processing times Limited accountability and visibility in the approval process leads to increased reliance on Payroll to catch all errors No flexibility in the level Improves payroll run calculations and variance analyses through automation, allowing for better reporting and quicker processing times Workflow improvement caused by the ability to better integrate with other systems and departments, whilst also having increased transparency to key employee information via technology. Appropriate handling of employee data depending on the situation (e.g. HR activities versus payroll activities), allows for sensitive handling of information and promotes smooth transitions between groups Increase management of system data access and approval authorizations so the right people have access to the right HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 7

9 of approvals Compliance Numerous refunds and corrective deductions are processed due to lack of accurate employee work status and documentation (i.e. foreign nationals, out of state residents, separated employees, etc). Downstream delays in obtaining and updating processes based on regulatory requirements Time consuming process to support audits supported by paper (i.e. I- 9s) information Allows for employees to be in the system prior to payroll processing periods, allowing for appropriate documentation and timely payment Effectively incorporates new regulatory rules timely and increases compliance with other departments (i.e. new Benefits rules, updated state regulations, etc.) The ability to process and track transactions using technology when such capability is very limited Modern system that can manage rapid changes in policies and regulations, allowing for up-todate changes that may impact payroll processing and/or employee pay (i.e. State and Federal tax changes) Access to data such as HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 8

10 employees address changes that impact tax withholdings Communications and Integration with Others Technology Automation Excess time spent validating and coordinating with departments and employees to verify documentation and/or process payment corrections Lack of notifications between payroll, departments and employees Lack of technology automation causing errors and/or delays in processing employee payments Manual processes increase inefficient and longer processing times Multiple databases and/or Improves departmental and employee communications via automated notifications of payroll changes or adjustments Visibility of information within technology (ESS, MSS, technology, etc.) Incorporates technology to automate activities where appropriate, reducing the amount of manual effort Improves communications by speeding up notifications, requests and the routing of information to appropriate parties quickly HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 9

11 systems used to track various information leads to multiple data entries and increases inaccuracies Integrate data in one solution to process transactions, allows single source of the truth and consistent employee data Automate time and leave collection, eliminates Payroll resources from having to spend time tracking time and leave data C. Role Definitions The process flow diagrams reflect activities owned by roles versus people or jobs. The intention is to focus the discussion on functions instead of people. One individual can perform multiple functions. Below are sample definitions for the roles that can be used in the 13.0 On-Cycle Payroll process flows. The UW Payroll Office process leads and focus group members have agreed to postpone the defining roles during time of development of this narrative document. The roles and descriptions listed below are some of the roles that are used in this narrative. Role Description UW Payroll Office Payroll Manager Payroll Accountant This group is responsible for Payroll Processing; role to be defined. Role which reviews and approves / denies payroll changes Payroll subject matter expert responsible for ensuring tax compliance and maintaining proper tax documentation, reconciliation and deductions HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 10

12 Technology This is a placeholder for the future technology system Party responsible for I-9 Role responsible for processing and tracking I-9 forms Payroll Responsible for ensuring rehires and out of state employees are Administrator processed correctly D. Key Terminology The following terminology is used throughout the 13.0 On-Cycle Payroll processes: Term Review Approve ESS Definition A step within a business process workflow that provides the ability to Edit, Accept, Deny or Send Back the request A step within a business process workflow that provides the ability to Accept, Deny or Send Back the request. No edit capability is provided to the approver Employee Self Service web based site for employees to update/change personal information such as addresses, W-4, and direct deposit information, etc. The employee can also view personal payroll, benefits, and leave information. PAS FAS DSHS Purchasing and accounting system used for issuing 3 rd party payments Financial accounting system system of record for payments and general ledgers Washington State Department of Social and Health Services an integrated state organization focused on the safety and health of individuals and families. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 11

13 SDB Student database used for student FICA exemption FIN Financial indexes interface for labor distribution DAPP Data administration payroll personnel HEPPS Higher Education Payroll Personnel System BGT Budget system SAAM RCW State Administrative and Accounting Manual Revised Code of Washington compilation of all permanent laws now in force. EFTPS Electronic Federal Tax Payment System IRS system for tax payments HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 12

14 E. High Level 13.0 On-Cycle Payroll Process The On-Cycle Payroll processes cover three process flows: On-Cycle Payroll Process: This process covers the collection of employee pay data information, application of payroll withholding rules and execution of tax payments Employee Payroll Data: Outlines the processes to update and process employee payroll based on work authorization, location, and status Involuntary Deduction: Covers the involuntary deduction process for set up, amendments, and termination of deductions HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 13

15 F On-Cycle Payroll Process Summary Process Definition The On-Cycle Payroll process covers the activities completed to determine and process employee pay while using a central data source via a Technology to be determined by the UW Procurement team. Process Flow The On-Cycle Payroll Process Summary illustrated below shows an overview of the sub-processes that will be narrated in this document. The subsequent process flows in this narrative will list the step-by-step approach for the respective set of sub-processes. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 14

16 Process Narrative Collect Pay Data Inputs The process flow illustrated below shows the step-by-step activities for collecting pay data inputs. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 15

17 Collect Pay Data Inputs # Step Name Description Notes Rules & Regulations 1 Maintain employee pay details Employee employment records and payment elections are captured within Technology. Processes #1-6 occur up to the day of processing payroll. State Administrative and Accounting Manual (SAAM/OFM) Chapter 25 Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Input from: Onboarding, Time Collection, & Leave administration 2 Load: Any Off-Cycle or One Time Payments/Refunds 3 Automatically calculate one-time payment/refund (if necessary) Employee payment/refund information is entered into technology. One-time payment/refund will be automatically processed within technology. 4 Load: Taxable Items Taxable item information is to be entered into the system for appropriate tax applications. Any off-cycle payments or refunds will be processed according to the offcycle process. Examples of taxable items include moving and travel expenses RCW SAAM Chapter , IRS Regulations Publication 15 RCW SAAM Chapter 25, RCW IRS Publication 15-B Input: from Off Cycle Input: from Other Department(s) 5 Complete manual input of taxable items (if necessary) Enter in any exceptional taxable items manually, if appropriate SAAM Chapter 25, IRS Publication 15-B HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 16

18 Collect Pay Data Inputs # Step Name Description Notes Rules & Regulations 6 Upload/manual entry one-time allowances - Time and attendance/system integration 7 Receive approved hours by department for the period 8 Review technology report to confirm all departments have submitted 9 Calculate semi-monthly pay based on reported Any one time payment allowances are entered at this step. Time sheet data is integrated into the technology for updating employee data information Payroll receives the employees approved hours. Hours have been approved by their respective department manager(s). A report is generated from the technology to verify that all timesheet hours have been confirmed and submitted. Pay calculations are automatically calculated in the technology. Example of one-time payment allowance is relocation incentive pay The assumption is that hours received from departments have all been approved. Technology to automatically apply UW rules and regulations, IRS Publication 15, SAAM Chapter and Chapter 60 Federal Regs/FLSA, Union Agreements, SAAM Chapter 25 UW Policy, SAAM Chapter 25 and federal policies for time approval RCW 42.16, SAAM Chapter 25 RCW 42.16, SAAM Chapter Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Input: request to pay Input from:, Time Collections, Leave Administration Interface: Kronos (UW Medicine) Input from: Time Collections, Leave Administration Interface: Kronos (UW Medicine) Interface with the Payroll Off-Cycle process; Time Collection Output: Pre-Run Pay calculation HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 17

19 Collect Pay Data Inputs # Step Name Description Notes Rules & Regulations hours and compensation package Calculations include allowances. withholdings as appropriate, as part of the pay calculation , , and , IRS Publication 15, RCW (Medical Aid), RCW 28B (Deferred Comp.), and RCW (Dependent Care Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies report Input: Withholding and allowances information into technology and Time Collection (hours) Interface: Process Gross to Net Payroll HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 18

20 Process Narrative Apply Payroll Withholding Rules The process flow illustrated below shows the step-by-step activities for applying payroll withholding rules. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 19

21 Apply Payroll Withholding Rules # Step Name Description Notes Rules & Regulations 1 Apply healthcare benefit rules 2 Apply retirement contribution 3 Apply employee elected withholding rules 4 Apply voluntary deductions Pay withholding rules are applied based on healthcare benefit rules. Pre-established rules are to be set within Technology. Pay withholding rules are applied based on retirement contributions. Pre-established rules are to be set within Technology. Employees elected withholding rules are applied within Technology. From the voluntary deductions process, deductions are automatically applied within Technology The healthcare benefit rules are verified and established as part of the Benefits process workflow. Withholdings include both employer and employee contributions. Some examples of employee elected withholdings include commuter services, union dues, Combined Fund Drive (CFD) Health Care Authority (HCA), Chapter 25, RCW and IRC 106(a); IRS Reg SAAM Chapter 25, RCW 28B.10, UW rules eligible, IRC 401(a) SAAM Chapter b, Union Agreements, Departmental policies regarding fees/services such as Parking SAAM Chapter B and Interfaces/Integratio n/outputs/ System & Data Dependencies Integration: Benefits, Health Care Authority (HCA) Integration: Benefits In/Output: HCA Input: files from departments processing deductions, union cards, bank deductions form, CFD Contribution Form Integration: Voluntary Deductions process Outputs: payments to departments for HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 20

22 Apply Payroll Withholding Rules # Step Name Description Notes Rules & Regulations Interfaces/Integratio n/outputs/ System & Data Dependencies deduction withheld 5 Technology/system interface to apply FICA exemption, tax treaty limits 6a Apply tax rules 6b Prioritize deductions and apply involuntary deductions Based on all the applied withholdings, the Technology will enter the appropriate FICA exemptions and tax treaty limits, as applicable. The technology will apply appropriate tax rules based on the withholdings and deductions. The technology will have prioritized deductions established within the system. Involuntary deductions will be applied based on prioritization of deductions. Involuntary deductions are also prioritized based on garnishment rules (i.e. child support, and others) IRS Publication 15, SAAM Chapter 25; IRS Publication 54; IRS Publication 901; IRS Publication 597 IRS Publication 15, IRS Publication 15-A; IRS Publication 15-B; SAAM Chapter 25 SAAM Chapter 25, Garnishment and Wage Assignments 25.60; IRS Publication 1494 Integration: Student Database (SDB) Interface: Gross to Net Payroll process Outputs: payment to vendors HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 21

23 Process Narrative Process Gross to Net Payroll The process flow illustrated below shows the step-by-step activities for processing gross to net payroll. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 22

24 Process Gross to Net Payroll # Step Name Description Notes Rules & Regulations 1 Access the Run Pay Calculation 2 Calculate payroll (Preview) 3 Perform variance analysis and validate results 4 Generate final audit reports From the Collect Pay Data Inputs, the UW Payroll Office can run pay calculations within Technology Based on the applied withholding rules, the Technology will automatically generate a preview of the payroll calculations Variance analysis is conducted by the UW Payroll Office to validate the results of the pay calculations A final audit report is generated from within technology N/A N/A SAAM Chapter 25 SAAM Chapter 25 Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Input: from Collect Pay Data Inputs process From: Apply Payroll Withholding Rules N/A Output: Edit/Calc Reports N/A 5 Approve and close payroll After all reviews are completed, the UW Payroll Office can approve and close the payroll N/A Output: To Execute Post Pay Tasks HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 23

25 Process Narrative Execute Post Pay Tasks The process flow illustrated below shows the step-by-step activities for executing Post Pay tasks. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 24

26 Execute Post Pay Tasks # Step Name Description Notes Rules & Regulations 1 Generate Payroll Funding 2 Perform audit and reconciliations (tax/bank) 3 Generate summary tax information UW Payroll Office to generate payroll funding reports and trigger a notification to banks and account of the amount to fund for Net Pay UW Payroll Office to conduct audit and reconciliations prior to issuing payments Via Technology, UW Payroll Office to generate summary tax information and trigger a notification to banks and account of the amount to fund for taxes 4 Complete tax payments Technology to complete tax payments 5 Technology/system integration for 3 rd party payments 6 Remit funds to 3 rd party payments Technology to integrate with 3 rd party for payments Remit funds to 3 rd party payments via Technology Process includes reconciliation of voluntary/involuntary deductions, payroll, and taxes IRS Publication 15 Interfaces/ Integration/ Inputs/Outputs/ System & Data Dependencies Input: Process Gross to Net Payroll Interface: Technology for 3 rd party payments HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 25

27 Execute Post Pay Tasks # Step Name Description Notes Rules & Regulations 7 Balance pay and post to Financial System UW Payroll Office to balance pay and post to financial system Interfaces/ Integration/ Inputs/Outputs/ System & Data Dependencies Interface: PAS & DSHS HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 26

28 Process Narrative Complete Tax Payments The process flow illustrated below shows the step-by-step activities for executing Complete Tax Payments. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 27

29 Complete Tax Payments # Step Name Description Notes Rules & Regulations 1 Generate tax summary reports 2 Review results, reconcile totals, proceed with approval process 3 Initiate transfer to 3 rd party service provider 4 Technology/3 rd party service provider integration 5 Send payroll results for remittance Using technology, generate the tax summary reports Review results, reconcile totals, proceed with approval process Initiate transfer to 3 rd party service provider Technology to create a data file in the prescribed format Report is generated in parallel to posting in the financial system Send payroll results for remittance Payroll results sent to 3 rd party include tax amounts and wages subject to withholding for each tax authority 6 Remit funds to 3 rd party Remit funds to 3 rd party via Electronic Federal Tax Payment System (EFTPS) - Vendor Selection? If yes, proceed to process 7. If no, proceed to process 9. Interfaces/ Integration/ Inputs/Outputs/ System & Data Dependencies IRS system for tax payments HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 28

30 Complete Tax Payments # Step Name Description Notes Rules & Regulations 7 Remit taxes to tax authorities Remit taxes to tax authorities IRC 6302(h) Interfaces/ Integration/ Inputs/Outputs/ System & Data Dependencies 8 Receive confirmation of remittance 9 Perform final reconciliation UW receives confirmation of remittance via Perform final reconciliation HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 29

31 Process Narrative High Level Employee Payroll Data The process flow illustrated below shows the step-by-step activities for executing Employee Payroll Data at a high level. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 30

32 High Level Employee Payroll Data # Step Name Description Notes Rules & Regulations 1 Complete initial data entry Employee enters personal information into Employee Self Service and Technology 2 Make payment Employee selects preferred payment method. 3 Enter employee and tax information 4 Prenote employee accounts 5 Execute foreign national (FN) process (if necessary) Employee tax information is calculated prior to payment Prenote activities commence after employee is entered into Technology. Banking relationship is established. FN process is initiated if employee claims to be a foreign national Employee data includes I-9, W-4, or state-equivalent W-4 forms Payment election options include: direct deposit or pay card Federal Regulations, IRS Publication 15, USCIS M-274, USCIS M-574 Individual State Revenue Departments; IRS Publication 15 IRS Publication 54; IRS Publication 901; IRS Publication 597; USCIS M- 574, USCIS M-274 Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Input: Forms Interfaces: Banking institutions Interfaces: Banking institutions HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 31

33 High Level Employee Payroll Data # Step Name Description Notes Rules & Regulations - Ongoing data maintenance needed? 6 Change residence or work address 7 Update I-9, if applicable Are there any employee data information changes or status that need to be updated? Employee updates place of residence and work address information in ESS which automatically updates Technology and informs impacted parties via automated notifications Employee updates I-9 information if status has changed within ESS. Technology is also updated automatically and informs impacted parties via automated notifications 8 Update tax information Update tax information where appropriate - Employee terminates? Did the employee terminate? If yes, proceed to final Payout. If no, proceed to next question: Employee rehired? Separations to update employment status in Technology USCIS M-274 IRS Publication 15; Individual State Revenue Department Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Interfaces: Benefits, Payroll Interfaces: Separations, Payroll, Benefits HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 32

34 High Level Employee Payroll Data # Step Name Description Notes Rules & Regulations - Employee deceased? Is the employee deceased? If yes, proceed to step 9, Execute deceased employee process. If no, end process. - Employee rehired? Is the employee a rehire? If yes, proceed to step 8 and execute rehire process. If no, proceed to next question: Employee deceased? IRC 691(a)(1) Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies 9 Execute deceased employee process Initiate process for executing deceased employee process 10 Execute rehire process The rehire process is initiated and involves updating the employees rehire documentation as necessary 11 Benefits administration If employee has a work, residency, or I-9 status change, benefits administration need to be notified Example: transferring retirement eligibility; changes to medical plans, VIP, etc. IRC 691(a)(1) Interfaces: Separations and Off-Cycle Payroll Interfaces: On boarding, FN Process (if applicable), Make payment election process Interfaces: Benefits Administration and Workforce Management HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 33

35 High Level Employee Payroll Data # Step Name Description Notes Rules & Regulations 12 Payout If employee has a work, residency, or I-9 status change, Benefits and Payroll need to be notified Example: transferring out of leave bearing position Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Interfaces: Payroll, Benefits, Workforce Management HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 34

36 Process Narrative Complete Initial Data Entry The process flow illustrated below shows the step-by-step activities for completing Initial Data Entry. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 35

37 Complete Initial Data Entry # Step Name Description Notes Rules & Regulations - Is employee working outside of the U.S? - Is employee working on a federal contract? - Does employee have national security clearance? 1 Provide documentation of foreign national status 2 Complete section 1 of I- 9 Is employee working outside of the U.S? If no, proceed to next question. If yes, proceed to process step 1. Is employee working on a federal contract? If no, proceed to process step 2. If yes, proceed to next question. Does employee have national security clearance? If no, then proceed to the everify Process. If yes, proceed to process step 2. Employee to provide required documentation via technology Employee to complete section 1 of I-9 Employee will receive an on boarding packet which describes the required Payroll forms to be completed (i.e. I-9, W-4, local residency form, state equivalent W-4, reciprocal agreement form) Employee and supervisor are notified of the I-9 requirement USCIS M-274 FAR Case ; USCIS M- 574; 20 UCS 1001(a); FAR Case ; USCIS M- 574; 20 UCS 1001(a); HSPD-12 USCIS M-274 USCIS M-274 Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Interface: Onboarding Interface: E-Verify Process HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 36

38 Complete Initial Data Entry # Step Name Description Notes Rules & Regulations 3 Verify section 1 and complete section 2 of I- 9 - Is I-9 information entered in Technology? - Is employee identified as a foreign national via I-9 form? Party responsible for I-9 will verify section 1 is filled out and complete section 2 of the I-9 within technology Did the EE s I-9 information get updated in Technology? If no, Technology will send an automated message to the party responsible for I-9 to complete within an expected timeframe. If yes, Technology will verify that the I-9 was completed Is employee identified as a foreign national via I-9 form? If no, proceed to process 5. If yes, employee to be notified of potential foreign national status and proceed to process 4. in on-boarding materials. Technology will allow employee to complete section 1 of I-9 within technology. USCIS M-274 USCIS M-274 USCIS M-274 Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 37

39 Complete Initial Data Entry # Step Name Description Notes Rules & Regulations 4 Complete W-4 Employee completes and submits the W-4 within Technology 5 Complete state equivalent W-4 (if needed) If needed, the employee will need to complete a state-equivalent W- 4. Payroll runs a report to identify foreign nationals who do not self-identify as a foreign national. IRS Publication 15 Individual State Revenue Department Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Input: Onboarding HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 38

40 Process Narrative Make Payment Election The process flow illustrated below shows the step-by-step activities for making Payment Elections. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 39

41 Make Payment Election # Step Name Description Notes Rules & Regulations - Is employee unable to receive funds via direct deposit? - Is employee unable to enter via Technology Self Service? 1 Initiate payment election/change - Does employee bank account already exist? Is the employee unable to receive funds via direct deposit? If no, proceed to next question, EE unable to enter via Technology Self Service? If yes, proceed to next question, EE able to receive funds via Paycard? Is employee unable to enter via Technology Self Service? If no, proceed to step 1, Initiate payment election/change. If yes, proceed to step 4, Print and complete form. The EE will setup payment elections and/or any payment changes within Technology Does EE bank account already exist in the Technology? If no, proceed to step 2a, Create account-enter account information. If yes, proceed to step 3, Enter election/change The preferred payment elections are direct deposit or Paycard Paycard not available in ESS Employee needs to elect type direct deposit or Paycard RCW SAAM Chapter N/A RCW SAAM Chapter N/A Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Output: Wells Fargo HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 40

42 Make Payment Election # Step Name Description Notes Rules & Regulations 2a Create account-enter account information Within technology, the EE will be able to setup bank account information in Technology 3 Enter election/change Within technology, the EE will be able to select the bank account or change the bank account information within Technology Decision: Can the EE set-up multiple bank accounts for direct deposit? Note 1: the EE does not have the option to split their paycheck via direct deposit method and a paper check method Note 2: Depending on payroll processing deadline, changes made by the EE may or may not be incorporated in the payroll cycle Decision: Should there be requirement in Technology to notify UW of employees who setup foreign accounts? N/A Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Input: Wells Fargo on-line enrollment for Paycards HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 41

43 Make Payment Election # Step Name Description Notes Rules & Regulations - Employee able to receive funds via Paycard? 2b Paycard Option 4 Print and complete form Is the Employee able to receive funds via Paycard? If no, proceed to the On-Cycle Payroll process. If yes, proceed to step 2b, Paycard option If EE are able to receive payment via Paycard, then proceed to the next process Paycard Process. If EE is unable to enter payment elections via the technology, the EE will need to print and complete payment election forms and proceed to step 5, Provide form to payroll 5 Provide form to payroll Employee manually submits the payment form directly to Payroll and proceeds to step 6, Initiate payment election/change. Direct deposit is the preferred method. Paycard becomes the default. EE will receive funds via paper check if direct deposit and Paycard are not feasible. Paycard will be used in place of wire transfers, where possible. The Paycard process is TBD. Form from Wells Fargo web (on-line enrollment) or payroll web page. Not available on-line in ESS. SAAM Chapter SAAM Chapter N/A N/A Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Interface: Paycard process HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 42

44 Make Payment Election # Step Name Description Notes Rules & Regulations 6 Initiate payment election/change - Employee bank info already exists? 7 Create/update bank information Upon receipt of payment election forms or payment changes, the UW Payroll office will initiate payment election/changes within Technology Does Employee bank info already exist in Technology? If No, proceed to step 7, Create/update bank information. If yes, proceed to step 8, Enter/change elections. UW Payroll Office will create/update bank information in Technology 8 Enter/change elections UW Payroll Office will enter/change payment elections in Technology. An automated notification will be sent to the EE to inform them of the payment election or change. Proceed to Direct Deposit Process. Paycard not available in ESS. Paycards do not have bank information. Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies N/A Output: Wells Fargo N/A Entry via form. N/A Output: Wells Fargo N/A Interface: Direct Deposit Process HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 43

45 Process Narrative Direct Deposit Process The process flow illustrated below shows the step-by-step activities for setting up direct deposit process. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 44

46 Direct Deposit Process # Step Name Description Notes Rules & Regulations 1 Identify new/changed employee accounts for inclusion in prenote Any new and or changed employee account information entered in Technology will send an automated notification to the UW Payroll Office to initiate the prenote process and/or direct deposit setup activities 2 Create prenote run Upon receipt of new or changed employee payment account information, the UW Payroll Office will initiate the prenote/direct deposit setup process via Technology 3 Receive prenote information Via Technology, the bank receives the prenote information Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Interface: from make payment election Integration: Bank system integration 4 Prenote/direct deposit accounts The banking institution will setup/enter bank account information HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 45

47 Direct Deposit Process # Step Name Description Notes Rules & Regulations 5 Send prenote /direct deposit errors to the university 6 Review prenote/direct deposit bank report Any errors during setup of the bank account information will be sent to UW Payroll Office The UW Payroll Office will receive the prenote/direct deposit error report from the bank and will review - Errors? Are there any errors identified by the bank? If no, proceed to step 7, Automatically change status to complete. If yes, proceed to step 8, Change status to error 7 Automatically change status to completed If no errors reported by the bank, the UW Payroll Office will change the status of the employee account information to Complete within Technology 8 Change status to error If errors are reported by the bank, the UW Payroll Office will change the employee record status to Error in Technology 9 Correct any payroll errors (if possible) and notify employee of the UW Payroll will attempt to correct any errors, if possible. UW Payroll will notify the EE of the Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Input: Bank File HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 46

48 Direct Deposit Process # Step Name Description Notes Rules & Regulations need to correct prenote/direct deposit errors need to correct prenote/direct deposit errors via a notification to the EE 10 Make required changes The EE will be prompted to make the necessary changes to correct the banking errors 11 Automatically change status to completed If no errors, technology to automatically change employee status to completed. Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Input: Onboarding HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 47

49 Process Narrative Enter Employee and Tax Information The process flow illustrated below shows the step-by-step activities for entering employee and tax information. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 48

50 Enter Employee and Tax Information # Step Name Description Notes Rules & Regulations 1 Receive paper/electronic forms Receive paper/electronic forms from the Onboard process via Technology Documents received may include: foreign national, I-9, W-4 and any others. I-9 forms are entered by the EE and completed by HR and Payroll I-9 Immigration Reform and Control Act of 198 and IRS Publication 15, USCIS M-274 Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Interface: Onboard Process 2 State and any additional taxes default based on work location and residency 3 Enter information from tax forms Technology will establish appropriate taxes based on the EE work and residency location UW Payroll enters EE information based on tax forms in Technology Assumption: all taxes will default to the EE work and residency location; all tax rules will be preset in Technology, where applicable State Administrative Code; individual state laws and regulations; Individual State Revenue Department 4 Enter local or any other tax info UW Payroll enters EE information based on local and/or any other tax forms in Technology HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 49

51 Enter Employee and Tax Information # Step Name Description Notes Rules & Regulations 5 Submit information Submit all appropriate tax information in Technology to proceed with the On-Cycle Payroll process - Foreign National analysis required? Based on the EE information and work and residence information, is foreign national analysis required? If no, end analysis. If yes, proceed to Execute Foreign National Process USCIS M-274; IRS Publication 15; IRS Publication 54: IRS Publication 901; IRS Publication 597 Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Interface: On- Cycle Payroll process and Execute FN Process HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 50

52 Process Narrative Execute Foreign National Process The process flow illustrated below shows the step-by-step activities for executing the Foreign National Process. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 51

53 HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 52

54 HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 53

55 Execute Foreign National Process # Step Name Description Notes Rules & Regulations 1 Complete FN documentation - Received all FN/W-4 documentation? 2 Technology to set employee to a default tax status - Changes required to FN or W-4? 3 Make changes to documentation EE is notified via Technology to complete Foreign National (FN) documentation Have all FN and W-4 documentation been updated in Technology? If no, proceed to step 2. If yes, Technology to send automated notification to EE informing of documentation acceptance Technology will have a default tax status setting for all EE, until FN/W-4 documentation is received. Are there any changes required to FN or W-4 documentation? If no, proceed to step 4, Update form 1007 for FN employees. If yes, Technology to send notification to EE of required information. EE to make changes to FN/W-4 documentation as identified by Technology UW Policy Form 1007; USCIS M- 274; USCIS M-274; IRS Publication 15; IRS Publication 54: IRS Publication 901; IRS Publication 597 IRS Publication 15; IRS Publication 54 IRS Publication 15; IRS Publication 54 Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Interface: Onboarding HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 54

56 Execute Foreign National Process # Step Name Description Notes Rules & Regulations - Are all changes completed? - Eligible for tax treaty benefits? 5 Default to W-4 information Are all changes in the documentation acceptable? If no, identify the changes required and notify EE of changes via Technology, revert to step 3. If yes, proceed to step 4, Update form 1007 for FN employees Is the employee eligible for tax treaty benefits? If no, proceed to step 5, Default to W-4 information. If yes, notify EE of tax treaty benefit eligibility and proceed to step 6 or 7, based on EE preference. EE who are not eligible for tax treaty benefits will have a tax default based on what is noted in the W-4 6 Update W-4 EE has the option to update W-4 via Technology, if eligible for tax treaty benefits. EE who are eligible for tax treaty benefits have the option to complete form 8233 or update W-4 EE who are eligible for tax treaty benefits have the option to complete form 8233 or update W-4 UW Policy Form 1007 IRS Publication 901 IRS Publication 15; Publication 901; IRS Publication 54 IRS Publication 15; IRS Publication 901; IRS Publication 54 Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 55

57 Execute Foreign National Process # Step Name Description Notes Rules & Regulations 7 Sign tax treaty form and article agreement 8 Enter tax treaty information 9 Provide tax treaty form to IRS EE to sign tax treaty form 8233 and article attachment, must submit signed documents via paper form to the UW Payroll Office UW Payroll Office receives and enters tax treaty information via Technology and proceeds to Year End Processing activities and step 9, Provide tax treaty form to IRS (if required) UW Payroll Office to provide tax treaty forms to IRS - FICA exempt? Is EE FICA exempt? If no, end FN Process. If yes, Technology to update EE status with FICA exemption and sends notification to UW Payroll Office. - FICA or FWT already taken out of employee pay? Upon receipt of FICA exemption notice via Technology, has FICA exemption and/or FWT already taken out of EE pay? If No, proceed to On-Cycle Payroll EE who are eligible for tax treaty benefits have the option to complete form 8233 or update W-4 The FN process is an input to the year-end processing activities. IRS Publication 901 IRS Publication 901; IRS Publication 54 IRS Publication 54 Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 56

58 Execute Foreign National Process # Step Name Description Notes Rules & Regulations - Issue refund with Off- Cycle or On-Cycle pay? 10 Issue refund to employee process and Technology to send automated notification to EE. If Yes, proceed to next question, Issue refund with Off-Cycle or On-Cycle pay? Does EE get issued a refund with Off-Cycle or On-Cycle pay? If Off- Cycle, proceed to Off-Cycle process and step 10. If On-Cycle, proceed to On-Cycle pay process and step 10. Issue refund to employee. Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 57

59 Process Narrative Change Residence or Work Address The process flow illustrated below shows the step-by-step activities for changing residence of work address. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 58

60 Change Residence of Work Address # Step Name Description Notes Rules & Regulations 1a Change primary/residence address 1b Change work address 2 Make appropriate tax changes, if necessary Change of primary/residence address received via Technology; UW Payroll to automatically be notified of address changes outside of WA State via technology Change of work address received in Technology; Technology to send an automated notification of address change to the EE department and the UW Payroll Office of address change. Upon receipt of residence and/or work address changes, UW Payroll Office to make appropriate tax changes, if necessary. Department s responsibility to update in OPUS. Within UW, department s responsibility, out-ofstate refers to State Administrative Code. Individual State Revenue Departments Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Interface: Risk Management Interface: Risk Management HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 59

61 Process Narrative Update Foreign National I-9 The process flow illustrated below shows the step-by-step activities for updating foreign national I-9 forms. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 60

62 HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 61

63 Update Foreign National I-9 # Step Name Description Notes Rules & Regulations 1 Work authorization to expire within 120 days - Employee not terminated? 2 Employee submits documentation Technology to track and flag any work authorizations that are to expire within 120 days. Is the EE not terminated? If no, end updating FN process. If yes, Technology to send automated notification to EE of work authorization expiration with next step instructions, and proceed to step 2, EE submits documentation EE submits documentation as indicated within Technology Reminders continue every 30 days until expired. USCIS M-274; DOJ OSC Administrative Guidelines USCIS M-274 Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies - Employee supplies documentation? 3 Complete updated I-9 form Did the EE supply the required documentation? If no, proceed to step 5, EE to be separated. If yes, proceed to step 3, Complete updated I-9 form. I-9 document verifier or department to complete the I-9 form within Technology - I-9 Updated? Is I-9 form updated? If no, send notification to party responsible for updating the I-9 form and USCIS M-274 USCIS M-274 USCIS M-274 HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 62

64 Update Foreign National I-9 # Step Name Description Notes Rules & Regulations 4 Follow up with employee 5 Employee to be separated 6 Verifier updates Section 3 of I-9 form - Employee now a permanent resident? - Employee submitted FN information in the calendar year? proceed to step 4, Follow-up with EE. If yes, proceed to step 6, Verifier updates section 3 of I- 9 form I-9 Verifier or Department to follow-up with EE for updated I-9 form information Technology to flag HR for possible EE separation due to incomplete FN I-9 documentation Verifier to update section 3 of the I-9 form in Technology. Technology to then send automated notification to UW Payroll Office of completed I-9 Is the EE a permanent resident? If no, proceed to next question, EE submitted FN information in the calendar year? If yes, process to step 7, Review tax setup and make any changes, if necessary Did the EE submit FN information in the calendar year? If no, proceed to FN process. If yes, USCIS M-274 USCIS M-274 USCIS M-274 USCIS M-274, IRS Publication 54, IRS Publication 15 Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 63

65 Update Foreign National I-9 # Step Name Description Notes Rules & Regulations proceed to next question; Are the changes to the current tax setup? Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies - Changes to the current tax setup? - Changes require employee action 7 Review tax setup and change it if necessary 8 Notify employee of tax change and instructions to submit new W-4, if desired Are there changes to the current tax setup needed? If no, end process. If yes, proceed to next question, Changes require EE action? Do the changes to the current tax setup require any EE action? If no, proceed to step 9, Update tax setup. If yes, proceed to step 10, Notify EE of action required. If EE is now a permanent resident, review tax setup and make any changes, if necessary Via Technology, send notification to EE of tax changes with instructions to submit W-4, if desired IRS Publication 54; IRS Publication 901 IRS Publication 15; IRS Publication 54; IRS Publication 901; Individual State Revenue Departments IRS Publication 15; IRS Publication 54; IRS Publication HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 64

66 Update Foreign National I-9 # Step Name Description Notes Rules & Regulations 9 Update tax setup Via Technology, update tax setup according to the EE FN I-9 status 10 Notify employee of action required 11 Make necessary changes Via Technology, notify EE of actions required to update information EE makes the necessary changes via Technology 901; Individual State Revenue Departments IRS Publication 15; IRS Publication 54; IRS Publication 901; Individual State Revenue Departments Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies - New tax treaty signed? Did the EE sign the new tax treaty? If no, end process. If yes, proceed to step 12, Enter/update tax treaty information. 12 Enter/update tax treaty information UW Payroll Office receives and enters updated tax treaty information in Technology HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 65

67 Update Foreign National I-9 # Step Name Description Notes Rules & Regulations 13 Provide form to IRS UW Payroll Office mails updated forms to IRS. Proceed to Year End Processing. IRS Publication 54; IRS Publication 901 Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 66

68 Process Narrative Rehire Process (Payroll Impacts) The process flow illustrated below shows the step-by-step activities for the rehire process. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 67

69 Rehire Process (Payroll Impacts) # Step Name Description Notes Rules & Regulations 1a Review state and local tax setup and change if necessary 1b Send reminder to the employee to complete Foreign National (FN) questionnaire (if necessary) 2 Complete new W-4 /other applicable tax forms if desired Review state and local tax setup and change if necessary. Send reminder to the employee to complete Foreign National (FN) questionnaire (if necessary) Complete new W-4 /other applicable tax forms, if desired 3 Make payment election Make payment election Payroll to be automatically notified of rehired employees that are from out of state for purposes of noting correct tax setup. Payroll to be automatically notified of rehired employees that are from out of state for purposes of noting correct tax setup. Rehired employee to receive an automated notification to make payment elections and complete new W-4 form. Individual State Revenue Department IRS Publication 15 Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 68

70 Rehire Process (Payroll Impacts) # Step Name Description Notes Rules & Regulations - New I-9 required? Is a new I-9 form required to be completed? If no, end process. If yes, proceed to step 4. 4 Complete I-9 update or new I-9 5 Present acceptable documents for I-9 verification Update I-9 form or create a new I- 9 form Present acceptable documents for I-9 verification Decision: employee must complete a new I-9, if, their work authorization has expired or if their termination date exceeds the allowed time frame as established by Homeland Security. Rules about new versus updated I-9s will be established based on new technology. USCIS M-274 USCIS M-274 USCIS M-274 Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Process Narrative Deceased Employee Process (Payroll Impacts) The process flow illustrated below shows the step-by-step activities for handling deceased employee status. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 69

71 HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 70

72 Deceased Employee Process (Payroll Impacts) # Step Name Description Notes Rules & Regulations 1 Block federal taxes and taxable wages - Change payment to deceased estate? After receiving notification of the employee status change, initiate steps to block federal taxes and taxable wages Should payment be changed to the deceased s estate? If no, proceed to On-Cycle Payroll. If yes, proceed to Off-Cycle Payroll. Deceased employee s estate is paid during the next off-cycle run. Decision (a) Payment to the employee estate can be in the form of existing payment method or per new legislation, paid to employee estate. Decision (b) Determination of which group distributes the payment check is to be determined. IRC 691(a)(1) RCW Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 71

73 Deceased Employee Process (Payroll Impacts) # Step Name Description Notes Rules & Regulations Currently, Benefits distributes payment if the employee is eligible for benefits only. Deceased students are paid per the existing payment method. Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 72

74 Process Narrative Set-up Involuntary Deduction The process flow illustrated below shows the step-by-step activities for setting up involuntary deductions. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 73

75 Set Up Involuntary Deduction # Step Name Description Notes Rules & Regulations 1 Notify UW of involuntary deduction order Agency notifies UW of an involuntary deduction order a. Court ordered involuntary deductions are served by the State Attorney s General Office; all others by UW RCW Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Court Order DSHS b. Involuntary deduction examples: bankruptcy order, federal tax levy, child support, debt and student loan involuntary HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 74

76 Set Up Involuntary Deduction # Step Name Description Notes Rules & Regulations deduction, etc. Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies 2 Receive involuntary deduction order Receive letter from Agency of involuntary deduction order Court Order DSHS 3 Determine whether employee is currently employed - Employee currently employed? 4 Notify agency, respond to court order/notice of involuntary deduction Employment status to be noted within Technology Is the employee currently employed? If no, proceed to process 4. If yes, proceed to process 5. If individual is no longer an active employee, notify, respond to court order/notice of involuntary deduction 5 Select the order type If individual is currently employed, technology to prioritize deduction order for instances where more than one deduction is occurring 6 Enter order details, includes effective start date Enter order details and include effective start date Technology to prioritize deduction order DSHS HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 75

77 Set Up Involuntary Deduction # Step Name Description Notes Rules & Regulations 7 Enter associated agency fees Enter associated agency fees Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies 8 Calculate amount to be paid each period 9 Attach copy of order to EE file Technology to calculate amount to be paid each period and send notification to employee and agency of amount to be deducted Attach copy of order to EE file This step may not be needed depending on vendor selection IRS Publication Order status changes to Active - Any child support deductions? 11 Run report to determine employees not paid or with variances Technology to change order status to Active and proceed to On Cycle Payroll (Pay Calculation) process. Are there any child support deductions being taken out? If no, proceed to On-Cycle Payroll process. If yes, proceed to Benefits Run report to determine employees not paid or with variances and proceed to Execute Post Pay Tasks process. This step may not be needed depending on vendor selection Medical notifications to be sent for child support Assumption is that all calculations will be done via automated technology HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 76

78 Process Narrative Amend Involuntary Deduction The process flow illustrated below shows the step-by-step activities for amending involuntary deductions. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 77

79 Amend Involuntary Deduction # Step Name Description Notes Rules & Regulations 1 Notify UW of order amendment 2 Receive amended order Receive amended order Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies Notify UW of order amendment Court Order DSHS 3 Amend the order as required Amend the order as required 4 Select order type Select order type 5 Enter order details, includes effective start date 6 Enter associated agency fees Enter order details, includes effective start date Enter associated agency fees The order becomes effective in the first pay period that includes the effective date 7 Technology to calculate pay deductions 8 Enter date for amended order to become effective Technology to calculate pay deductions Enter date for amended order to become effective IRS Publication 1494 HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 78

80 Amend Involuntary Deduction # Step Name Description Notes Rules & Regulations 9 Amended order status turns to Active 10 Original order status turns to Inactive Amended order status turns to Active Original order status turns to Inactive Currently, there is a six year retention schedule for the order; Interfaces include: Purchasing & Accounting System (PAS), FAS and DSHS Interfaces/Integrat ion/ Inputs/Outputs/ System & Data Dependencies DSHS DSHS HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 79

81 Process Narrative Terminate Involuntary Deduction The process flow illustrated below shows the step-by-step activities for terminating involuntary deductions. HR/Payroll Business Process Design Narrative: 13.0 On Cycle Payroll 80