Payroll

Payroll Policies and Procedures

Payroll Systems Overview

Payroll Systems Overview

The University's Human Resource System supports human resource administration including employment, compensation and employment records and benefits. The HR system also supports payroll processing, including the collection of employees' time (electronically transmitted by departments using the Time Reporting System), calculation of gross income and net pay, validation of earnings, and the calculation of overtime defined by FLSA (Fair Labor Standards Act) requirements. The system generates the data for preparing paychecks and direct deposit notices. And the system distributes payroll expenses based on labor charges from the Time Reporting System, or in the case of monthly employees, from labor information assigned to the employee's position and job record.

Basic functions of the Human Resource System, including position control, applicant tracking, time reporting, benefits and deductions, labor distributions, payroll calculations, preparation of paychecks and direct deposit notices and posting payroll journals to the ledger are outlined below.

Position Control and Budgeting:

Budget Offices use the Human Resource System's position control function (NBAPOSN) to define and maintain all positions and position characteristics as well as all regular and premium earnings, fringe benefits, and position labor distributions. Data collected by this module is automatically made available to the system's personnel functions for use in position requisitioning and applicant tracking.

Human Resource Interface to Chart of Accounts:

Budget Offices also maintain the Chart of Accounts, including defining index codes for relating cost centers to fund and activity and for translation to the General Ledger Chart of Accounts.

Biographical and Demographic Data:

Employment Offices enter biographic and demographic data for individuals (PPAIDEN) and make the data available for applicant and employee records.

Applicant Tracking:

Employment Offices use the Human Resource System's applicant tracking function (PAAAPLL) to maintain an applicant profile and track an applicant through the hiring process. The system allows for the recording of extensive data including information on education, employment history, certifications, publications and skills to be added to an applicant's profile.

Position Requisitioning:

Employment Offices specify vacancy and recruitment data via an on-line requisition (PAAREQU) which can be viewed by position or candidate.

Employee File:

Employment Offices complete the hiring process and create an employee file (PEAEMPL). The applicant's information is shared by the new file. Employment offices define and maintain leave eligibility, leave balances and review information. Biographic and demographic data is updated as necessary.

Job Records:

Employment Offices establish job records (NBAJOBS) using position and employee information. The employee's work history is recorded on the Employee History form (PEIEHIS).

Human Resource System Interface to Time Reporting (Employee data):

Payroll Services builds an employee file from information on the employee record and downloads the current file (PZPDDDI) to all modules in the Time Reporting System. Current employee files are created and downloaded by Payroll Services every day so that information regarding new hires, transfers, promotions and terminations are consistent in both systems.

Benefits and Deductions:

The Benefits Office defines and maintains employee and retiree benefit plans. Associated payroll deductions are established (PDADEDN). The Benefits Office is responsible for maintaining benefit- related deductions (health insurance, retirement, flex-fund, life and disability insurance and taxable tuition). Payroll Services is responsible for payroll-related deductions (federal, state and local taxes, FICA old age and medical, garnishments, parking, union dues, University gifts and United Way contributions).

Labor Distributions:

Labor distributions are defined on the position record and default to the job record where the labor entries may be overwritten. Labor entries on the job record may likewise be overwritten when hours are reported to Payroll Services for processing. Because bi-weekly time and attendance is processed through the Time Reporting System, all labor distributions defined in Time Reporting will overwrite the distributions on the job and position record for the current pay period.

Job History:

Job History data (PEIJHIS) is automatically created and maintained. Job history records job-related employee information including: employee class, status, grade, paid and unpaid leaves, deferred pay status, work schedules, and salary/wage information.

Payroll Processing:

Payroll Services initiates the payroll process, copies employee records and creates a file ready to process hours, salaries and deductions (PHPTIME).

Human Resource System Interface to Time Reporting (time and attendance data):

Departments electronically submit time and attendance through the Time Reporting System. Payroll Services reviews data transmitted by the many hundreds of reporting offices to insure all departments have transmitted time and the files are reasonable. A file is created and uploaded (PZPLDDI) through the Human Resource System's mass time entry function (PHPMTIM). In addition, Payroll Services enters any one-time payments directly into the Human Resource System (PHAHOUR).

Payroll Adjustments:

Payroll Services enters post-pay completion adjustments (PHAADJT) such as requests to void checks, manual time entries, requests to reissue checks, and labor redistributions.

Pay History:

A complete history of all pay calculations and adjustments is maintained for use in compliance with federal, state and local tax requirements.

Payroll Proof and Validation:

Payroll Services schedules system processes to proof and validate entries (PHPPROF), and calculate all earnings and deductions (PHPCALC).

Human Resource System Interface to BottomLine (check and direct deposit data):

Once the payroll calculation is complete, Payroll Services authorizes the processing of checks and direct deposits (PHPDOCM) and processes a direct deposit file (PHPDIRD) and a direct deposit report (PHRTREG) of deposit information to transmit to the banks. Payroll Services also runs processes to create the check and direct deposit files (PHPCHKL) to interface to BottomLine for printing of checks (PZPCHEK).

Human Resource System Interface to the General Ledger System:

Payroll Services updates the payroll files (PHPUPDT), moving current totals to year-to-date totals in the employee files, produces payroll and deduction registers (PHRPREG, PHRDREG) and authorizes the financial process to update the General Ledger (PHPFEXP, NHPFIN1, NHPFIN2).

Last Update : December 30,2003