Payroll Processes That Work Zurich North America Presented by: JoAnn Annarella Jeff Johnson

Payroll Processes That Work Presentation Outline Zurich North America Overview Timeline Where We Started From Where We Are Today The Payroll Processing Checklist Lessons Learned Recap Future Goals Contact Information

Payroll Processes That Work Company Overview 11,650 employees Third largest commercial insurer in the United States Over $10.9 billion in premiums U.S. Headquarters in Schaumburg, Illinois

Payroll Processes That Work Zurich’s Timeline

Payroll Processes That Work 1998 Initial Implementation begins 1999 Go-Live 3.1h Release Go-Live Employee Self Service (myconnect) 2000 Additional Business Unit Added Additional Employee Self Service Functionality Go-Live 4.5b Release 2001 Re-Implement Organizational Management Additional Business Units Added 2002 Added Canadian Business Unit Go-Live Manager Self Service

Payroll Processes That Work July 1998 Initial Implementation Begins April 1999 Go-Live on SAP v3.1H 3500 Active Employees 800 Retirees 2000 Terminated Employees Consultant Dependent

Payroll Processes That Work Payroll Organizational Management Master Data Time Management Benefits

Payroll Processes That Work Payroll Processing Time - At Least Two Days-Why? Lost Payroll Resources Attempted to mirror SAP to the legacy system (Cyborg) RETRO - The Good, The Bad, and The Ugly Processes - What processes? Training - Where’s the training? Consultants and Technical Support Ran Payroll Inbound/Outbound process

Payroll Processes That Work Payroll Organizational Management Master Data Time Management Benefits November 1999 Employee Self Service “myconnect”

Payroll Processes That Work November 1999 “ myconnect” Original Functionality Benefits Enrollment  Personal Information - Married/Single, Birthdate  Bank Details  Paid Time Off Summary Screen  On-line Payroll Check Viewing

Payroll Processes That Work January 2000 Processed first year-end via custom programs Converted Zurich business unit-additional 3000 active employees added to SAP HR

Payroll Processes That Work February 2000 Additional functionality added to “myconnect” (Zurich’s ESS) Check Stub Display - More Details Direct Deposit Enrollment Address Change Functionality(locked records) View Paid Time Off Accrual/Usage

Payroll Processes That Work May 2000 Live on upgraded release 4.5B October 2000 CATS Pilot rolled out to a selected group for controlling purposes not Time Evaluation

Payroll Processes That Work Payroll Organizational Management Master Data Time Management Benefits November 1999 Employee Self Service “MyConnect” July 2001 Organizational Management Web Tool

Payroll Processes That Work January, 2001 Re-Implemented Organizational Management Implemented Organizational Management Web Tool Converted Zurich Business unit-additional 1300 active employees added to SAP HR

Payroll Processes That Work January 2002 Converted Zurich Canada business unit 500 active employees added to SAP HR

Payroll Processes That Work Payroll Organizational Management Master Data Time Management Benefits November 1999 Employee Self Service “myconnect” February 2002 Manager Self Service “mygateway” July 2001 Organizational Management Web Tool

Payroll Processes That Work Introduction of Managers Tool “mygateway ” Employee Info Incentive Worksheet Performance/Salary Review Worksheet Employee Data Change Form Online Zurich Web Sites

Payroll Processes That Work Where are we today-Affects on Payroll Processing Time Employees have access to payroll information immediately via myconnect/ESS. New programs put into place to extract payroll information more accurately and shorten payroll processing time. Employee entries-Benefits, Address Changes, dependent information, emergency contact information Improved Paid Time Off Calendar Improved Check Stub--PDF

Payroll Processes That Work Manager Entry into SAP for Employee Awards Over 10,000 employees paid through SAP Experienced Staff- Payroll, Data Entry, Organizational Management Consultant Independent from Consultant Dependent. Creation and use of the Payroll Checklist-- processing time now 4 hours.

Payroll Processes That Work THE CHECK LIST

Payroll Processes That Work Day 1 -- Three days before payroll is processed send “Timekeeper Broadcast Message” to read Timekeepers please make all time entries prior to 6pm CT (enter date)

Payroll Processes That Work Day 2-- Complete inbound checklist Locked employee audit Schedule Payroll Simulation and Time Evaluation Time evaluation runs at 7:00 p.m. utilizing programs that access TVARV table to maintain dates. Payroll simulation runs after the system is backed up at approximately 1:00 am Delete BSI Messages (Tax Factory)

Payroll Processes That Work Day 3-- Complete time evaluation log Complete payroll job log(Simulation) Send broadcast message to read-- Payroll will be processing all day (enter date) any changes to employee records will have an adverse affect on payroll results. Schedule live payroll and time evaluation-- Time evaluation to run at 7 p.m. Payroll to run after backups approximately 1 a.m.

Payroll Processes That Work Clear benefit BDC session Release payroll NOTE: Only release payroll after time evaluation starts as time evaluation jobs use the control record to set variant parameters.

Payroll Processes That Work Day 4-- Complete payroll job log (live payroll) Complete time evaluation log Payroll corrections Complete executive pay audits Complete payroll audits/log Release payroll Run Time Evaluation (Matchcode W)

Payroll Processes That Work Audit Report Unexplained Net Difference Negative or Zero Tax Net Pay greater than 90% of Gross Pay Change in net pay of $5,000 or more from last payroll Active/Exempt employees with no results Employees with a claim Net pay under $25 Over 40 hours of overtime for this pay period

Payroll Processes That Work Run Payroll -Matchcode W Review payroll Matchcode W spools Verify employees in correction status is zero Note: payroll can not be exited if there are any employees in correction status Verify IT0009 accuracy (Only P or T permitted) Run PRE-DME

Payroll Processes That Work Complete part 1 of the Check/Direct Deposit Balance Log Complete Pre-DME section Attach hard copies of each spool Run DME-Checks Complete part 2 of the Check/Direct Deposit Balance Log Complete DME information Attach hard copied of each spool

Payroll Processes That Work Run DME-Direct Deposits Complete part 3 of the Check/Direct Deposit Balance Log Complete DME information Attach hard copies of each spool

Payroll Processes That Work Pre-DME DME - Checks DME - Deposits

Payroll Processes That Work

Schedule outbound jobs Print outbound reports Complete part 4 of the Check/Direct Deposit Balance Log Complete the ADP information Attach hard copied of the spool List employees with errors and add to post payroll processing

Payroll Processes That Work Complete remittance total balance log Convert ADP check file and zip Balance ADP check file (OTI) to DME totals Complete part 5 of the Check/Direct Deposit Balance Log Complete the OTI information Note any exceptions and verify balancing before file transmittal

Payroll Processes That Work

Send CEHP to ADP Process check/direct deposit pull list Fax cover sheet/pull list to ADP Attach ADP documentation Program to complete HR/FI transfer Exit payroll Complete outbound check list Assign post payroll processing

Payroll Processes That Work

Lessons Learned Do not rely on consultants and technical resources to run payroll Understand the affects of retro Know your processes Retain current payroll resources Add optional functionality in steps Train….Train….Train

Payroll Processes That Work Future Improvements FTP all vendor files Paperless payroll process Direct feed of salary changes-managers tool Compensation Module Organizational Chart Tool Enterprise

Payroll Processes That Work

Zurich Canada---Payroll Checklist

Payroll Processes That Work

QUESTIONS????

Payroll Processes That Work Contact Information Jeff Johnson - SAP Project Manager JoAnn Annarella - SAP Specialist

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