Payroll. January 21, 2014

Transcription

1 Payroll January 21, 2014

2 Background Changed payroll vendor mid-2007 Optimum - MCCC recommended vendor The last payroll study was in 2010 At a 2010 COW, Board agreed HR was understaffed Board agreed payroll would remain in HR Since the last study: Administration has been trained & provided back-up for payroll Administration prints vendor checks 2013 Board suggested considering outsourcing payroll as an option

3 Background Met with several vendors 1. Optimum (current payroll vendor) 2. RTVision (electronic timesheets only) 3. ADP (electronic timesheet, automated payroll & HR) 4. Paycom 5. Paychex Conversed with other counties Looked at studies Outsourcing

4 Outsourcing Payroll What would be outsourced? Researched fully outsourcing as an option No other County in MN has fully outsourced payroll Do we want to be the first County in MN to outsource payroll? Additional Option Further Payroll Automation

5 3 Components 1. Electronic Timesheets a. RTVision b. ADP 2. Payroll Processing a. Optimum b. ADP 3. Human Resources a. ADP

6 American Payroll Association Study of moving from manual time system to automated time system 3 areas of savings 1. Time savings 2. Fraud 3. Mistakes from manual keying Audit log report does not show all the payroll changes made in the system example: banking information

7 Component #1 - Timesheets

8 Component #1 - Timesheets Timesheet Committee Employee group established to review electronic timesheet options Committee members are involved in different stages of payroll processing: Cheryl Olson Kris Weiss Randy Johnson Sheila Kirkwood Carolyn Holmsten Scott Arneson Mike Zorn Eddy Wyld Amy Hove Melissa Cushing

9 Component #1 - Timesheets The departments listed are involved in processing timesheets: Time it takes to process payroll every 2 weeks: Human Resources hours HHS 1 hour Sheriff 8 hours Public Works 20 hours **This does not take into consideration the time each individual department takes to collect, organize, review and submit timesheets.

10 Component #1 - Timesheets Two Vendors: 1. ADP 2. RTVision

11 ADP

12 RTVision

13 Component #1 - Timesheets Why are Electronic Timesheets so important? Just one example: HHS performed an update to PH Docs which rendered the timesheet software ineffective 1. Since this occurred, manual entry for their timesheets has increased HR workload 2. Piecemeal a temporary system 3. Fixing the current system is expensive 4. Very difficult to enter timesheets 5. Labor intensive and easy to make mistakes

14 Component #2 Payroll Processing

15 Component #2 - Payroll Processing 2 Vendors 1. Optimum 2. ADP

16 Component #2 Payroll Processing Pros ADP Up-to-date technology Both HR employees have worked with ADP Tax filing Report tools Wage garnishment processing Benefit accruals MN new hire reporting Mobile functionality Optimum Current system Know how to use it Cons Learning a new system Investment Updates have bugs which cause malfunction & program errors Access to support System not user friendly or intuitive Reports are ineffective Wrote our own manual (53 pages) Kudos to Cheryl! Other departments agree there are serious flaws to the Optimum program

17 Component #3 Human Resources

18 Component #3 Human Resources HR Module - ADP Improved Employee Recordkeeping Benefits Reporting Online Open Enrollment Employee Self-Service Recruiting & Staffing Applicant Tracking EEO Compliance Onboarding & Engagement Leave of Absence Tracking Performance & Talent Management New Hire Enrollment Currently 28 items to process

19 Benefits and Reasons to Change Current software malfunctions, is not user-friendly Many counties are going away from Optimum Do we want to be the last county using this outdated software? (4 remaining) Efficiency Ability to Focus on Other Initiatives Automated Time System Relieves the Administrative Burden Better Management of Labor Costs Checks and Balances

20 Pros and Cons ADP Payroll, HR, Time & Attendance Pros Integrated system = less complexity 24/7 support HR & IT staff familiar with ADP Management of employee information Employee access to information Dependable functioning payroll program Less Risk ADP Time & Attendance 24/7 support HR & IT familiar with ADP Employee Self Service Mobile Applications Cons Investment Requires customization to interface with Optimum RT Vision Electronic Timesheets Currently used with Optimum Similar to current timesheet 30 MN Counties use Used by McLeod who also uses Optimum Public Works module HR & IT unfamiliar with software Will require customization if we move to a new payroll vendor

21 Payroll Location Options 1. Payroll services remain in Human Resources - ADP Total Package implemented 2. Payroll services remain in Human Resources - ADP Time & Attendance implemented 3. Payroll services move to Finance & Taxpayer Services - RTVision Time & Attendance Implemented

22 Option 3 Finance & Taxpayer Services Of Minnesota s 87 counties, payroll currently is handled by the Auditor/Treasurer/Finance Department in 59 of them If Goodhue County moved payroll out of HR, would need to move or add 1.5 FTE Benefits Four staff available for cross training opportunities Support staff need training; however are familiar with bits and pieces of current system Creates available HR time to focus on other initiatives Utilizing lower cost option

23 Option 3 Finance & Taxpayer Services Plan Staff with 1.5 FTE s Move current Payroll Technician to Finance and Taxpayer Services Add.5 FTE hours to department New person Shift from elsewhere in County Implement RTVision Roll out by department Add Public Works module in 2015 Timing Planning February Implementation March/April

24 3 year Cost 2014 Budget includes $35,400 ADP Total Package HR/Benefit/ Payroll/Timesheet ADP H/R Benefit Package ADP Timesheets only RTVision Timesheets only Purchase of Processing Services Annual Cost Purchase of Processing Services Annual Cost Purchase of Processing Services Annual Cost Purchase of Software annual support cost Year 1 77,466 28,900 30,509 35,418 Year 2 57,667 23,358 20,909 12,700* (a) Year 3 58,891 23,825 21,317 6,000 (a) Total 194,024 76,083 72,735 54,118 * Implement Public Works Module in 2015 (a) Used 2014 support cost of $6000 Year 4 6 New contract negotiated for purchased services New contract negotiated for purchased services New contract negotiated For purchased services Software Maintenance costs only