1. Payroll Terms & Concepts NCSC Product Certification Payroll Anytime, Anywhere!

2. Welcome!

3. What do these words have in common? Pay Periods © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. 3 Deductions Payroll Process Compliance

4. Welcome! Of all employee- related demands that our clients face, payroll administration is one of the most complex.  Definitions and basics of payroll processing © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. 4

5. Introduction © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. 5

6. Accounting Periods  Calendar  Fiscal  Quarter  Pay Period © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. 6

7. Pay Periods  Weekly  Bi-Weekly  Semi-Monthly  Monthly  Other © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. 7

8. Pay Rates  Hourly  Piece Rate  Salary  Salary + Bonus  Commission  Salary + Commission © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. 8

9. Recap © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. 9

10. Payroll Basics © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. 10

11. Payroll Process Manage Employee Records © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. 11 Collect time and attendance data Input payroll data Period End Processing Process and Distribute Payroll

12. Managing Employee Records  Creating - Collect static data - Verify employee contracts - Verify compensation and benefits - Verify tax information and jurisdiction - Enter employee information  Reporting - Respond to inquiries about employee records - Assemble data for audits or other reporting needs - Report new hires to the U.S. Department of Labor (DOL) © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. 12

13. Collect Employee Time and Attendance  Label and set up time cards or time sheets  Collect time cards or sheets  Supervisor sign-off or approval  Review for missed punches and exceptions then reconcile missing information or damaged time cards  Audit the totals and check for errors  Enter the data © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. 13

14. Input Payroll Data  Collect Payroll Data  Calculate Payment  Generate and Review Pay Reports  Update Files 14 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information.

15. Produce Payroll © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. 15  Print and sign checks  Stuff checks into envelopes and distribute  For direct deposit, transfer funds to employee accounts  Transfer garnishments  Submit tax payments

16. Period End Processing  Each Pay Period  Monthly  Quarterly  Calendar Year End  Fiscal Year End © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. 16

17. Compliance Fair Labor Standards Act Requires employers to keep a record of employee hours; sets minimum wage and requires overtime pay of 150%–the pay rate for work over 40 hours per week. © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. 17

18. How Can ADP Help?  Increased Accuracy  Improved Decision Making  Enhance Employee Satisfaction  Accommodate Needs  Increased Productivity  Save Time and Money © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. 18

19. Summary  Payroll Terms and Concepts  Basic Payroll Processes  Compliance  How ADP Can Help © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. 19

20. Welcome!