How to Finally Write Those Payroll Procedures Presented on Monday, November 13, 2017

Transcription

1 How to Finally Write Those Payroll Procedures Presented on Monday, November 13,

2 2016 The Payroll Advisor 2

3 Housekeeping 3 Credit Questions Today s topic Speaker 2016 The Payroll Advisor

4 To earn RCH credit you must 4 Stay on the webinar, online for the full 60 minutes Be watching using your unique URL Certificates delivered by , to registered , by December 13 th 2016 The Payroll Advisor

5 Our Focus For Today 5 How to organize your procedure writing process for best results What steps to take to get this monumental task under control How to write procedures in hours instead of days and weeks How a well written procedure can help promote the importance of payroll in your company and increase understanding of the payroll function How to revise outdated policies How to draft uniform policies and procedures that support compliance with company policies, federal and state laws and regulations and sound fiduciary principles How to use the procedure writing process to streamline payroll processes and clean up bad habits that may have accumulated over time

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7 7 Why Have Procedures? Ensures that each task is done completely, accurately and in the same manner each time it is performed Allows for consistency when the task is performed by large departments Excellent for training new employees Great source, of course, for backup employees for small departments

8 Added Bonus 8 Documenting procedures forces you to look at how you are performing each process and helps in streamlining procedures and cleaning up bad habits that may have build up over the years

9 Plus 9 Assists new employees and especially new supervisors or managers in assessing and evaluating office procedures in a non-combative way Helps in training the department and cross training as each procedure is written

10 But How Should You Write Procedures? 10 Write for someone who has no payroll background Write in plain English Must be easy to follow Must be totally accurate down to last detail No step is too small to leave out DUH!

11 Easy to Say But 11 It is difficult since most people writing procedures have a vast knowledge of payroll or many years experience It is a very technical field covering wage and hour and tax law as well as computer requirements

12 Keep an Open Mind 12 The following suggestion may seem a bit silly but it is well tested and will work every time You need to keep an open mind! If you do it will help you write accurate and complete procedures And have a little fun as well

13 So What Is This Method? 13 Write your procedures as if you were writing for an alien from another planet!

14 No I am Absolutely Serious! 14 If you develop a person to write for and keep that person in mind while writing it helps keep you focused on keeping the procedures simple and in plain English

15 15 Why build someone? But Why An Alien? Why not just use a current staff member? Since most payroll professionals don t know any aliens first hand it is easier to develop the character Expertise of staff members can change over time If person leaves no guarantee new staff member will have the same attributes or experience. Forces you to establish the minimum norm for the department. Actually put it in writing

16 Here s My Alien 16 His name is Zot from the planet Zygot. He can read and write the English language as used in the U.S. He does not know any slang terms whatsoever such as IRS terms, DOL terms, payroll terms or company lingo

17 Who Is Your Alien? 17 Actually can be anything from a stuffed Panda to a Ninja Turtle Makes the work seem lighter Helps bond the group Everyone is in on creating it Symbol of who is working on procedures

18 Examples of Using Slang 18 He does not know any slang terms whatsoever such as IRS terms, DOL terms, payroll terms or company lingo Your company calls a new hire form EHF s. This is short for Employee Hire Form. Everyone in the company knows this term. However, a new person in training may not. That is why you cannot use it in procedures until you have first explained the term.

19 Using Payroll Terms and Jargon 19 He does not know any slang terms whatsoever such as IRS terms, DOL terms, payroll terms or company lingo You cannot use any term until it is explained No matter how simple or basic Do not assume the person using the procedures understands anything unless you tell them Forces you to keep things simple!

20 More Characteristics for Zot 20 Sounds strange but these characteristics will help you write better procedures Cannot go backwards when reading Cannot turn pages backward Can use a computer Can refer to a system s manual Can refer to a company policy manual

21 How Does This Affect Writing the Procedures? 21 If you keep him in mind, you cannot write any procedure and take short cuts by saying something like refer to page 13 on how to do this part, or Go back to step two. You must write out each part completely each time.

22 22 Can Use Other Manuals You can refer to your system s manual when required You can refer to company policy manuals when required No need to rewrite in the procedure manual Unless of course, you don t have these manuals! Then you must include the instructions as well.

23 23 Develop For Your Needs Should always have the attributes we just discussed After that can develop in any way that fits your department s needs If you never hire anyone without at least one year of payroll experience then give that knowledge to your alien Always the lowest level never the highest!

24 What Would Your Alien Have? 24 Number of years in payroll CPP/FPC Certain Payroll Systems Certain Timekeeping Systems Other Computer Skills Other Skills

25 Actually Begin the Writing 25 Start after developing Your Zot as you need him Make a list? Or Dig right in? Whichever works for you Get the whole staff in on it Again great for training and cross training

26 Making a List 26 Some prefer to make a list of all the procedures they will need Then pick a procedures, any procedure and get started What procedures do you need? The list should include everything you do in the department, no matter how small

27 Remember Zot 27 Would he know it needed to be done or how to do it if you didn t write the procedure for it? This is your basic starting point Let s look at a basic procedure list. What three items would you include?

28 Sample Procedure List 28 How many picked these topics?

29 Or Just Dig Right In 29 Some prefer to just pick a topic they know they do need and just get started. Then as they write several procedures start the organizing. Either way will work, but you must eventually have a list done.

30 Don t Reinvent the Wheel 30 Have any old procedures lying around? They could be a good starting point. No matter how old Then go to performing the task. Make sure they still apply for the rules May have to update the writing style

31 31 Before Starting the Writing Gather all management policies, laws, rules and regulations as well accepted practices for each of the procedures first before beginning to write. Review the laws and policies first. May find noncompliance issues you didn t know existed.

32 Where to Start? Just pick a procedure and go It doesn t matter at this point what order they are done in Remember, each procedure is independent of each other so they can be written in any order, at any time Will be put together later in the manual

33 Getting It Down To Size 33 Procedures need to be manageable so keep it small No more than 10 distinct steps to each procedure (not including processing on system) If bigger, then split the procedure into two or more

34 Example 34 A good example is garnishments. You will need to break it down by type of garnishment first. Let s look at child support. You may want to break that down further by having a procedure that explains how to process a support order with arrears and one without.

35 Now Your List May Look Like 35 Now Garnishments on the previous list would look like this

36 36 Another Example Direct deposit is another example. You will want a procedure for setting up new direct deposits, one for changing an existing direct deposit, one for employees who have both checking and savings being direct deposited and one for canceling a direct deposit already in effect.

37 Now Your List May Look Like 37 Direct Deposit on our previous list would increase to these items

38 The Basics 38 The five basics elements of what is needed in a procedure include: Number Title Purpose When to use Steps Note: Screen prints, examples, samples all come after the basic procedure is completed some will need, some won t

39 39 Let s Do An Example Our procedure list includes auditing the Form W-4 when it is received by the payroll department Over the next slides we will review the five basic elements of a procedure and use the Auditing the Form W- 4 as an example demonstration for each element.

40 Number and Title 40 Helps when pulling together Numbering may need to wait until all are completed not cast in stone Company may have master numbering system Our Example: Procedure Number: A1107 Procedure Title: Form W-4 Auditing ZOT SPOT Make sure title is easy to use to identify the purpose

41 Purpose of Procedure 41 Need to know why the procedure is needed. What is its purpose? Helps define payroll department as well Maybe it isn t needed after all? Not uncommon to discover outdated or unneeded procedures during this process ZOT SPOT! Make sure purpose is clear

42 Purpose of Procedure 42 Our Example: To ensure accuracy of payroll data and to maintain compliance with all appropriate federal and state regulations, each Form W-4 received into the payroll department must be audited. The purpose of this audit is to verify that the form is completed properly by the employee and is in compliance with all IRS and state equivalent regulations.

43 When to Use the Procedure 43 When would someone in the payroll department need or be required to use this procedure? Our Example: This procedure is used whenever a Form W-4 is received by the payroll department. ZOT SPOT! Remember I am unfamiliar with your payroll department. I need to know how to apply the procedure so I use it correctly.

44 Exceptions? 44 Are there exceptions to the use of this procedure? If there are times when this procedure can t be used tell me now. Our Examples: Do not use this procedure to audit the state equivalent tax forms. See individual procedure for appropriate state and form. Do not use this procedure to audit Form W-4 for nonresident alien* employees. See procedure A1108. Make sure I know when NOT to use * Does this mean me??

45 Then the Actual Steps 45 ONE MORE TIME No more than 10 or 11 full steps Don t fudge and combine 5 steps into one But you can and usually do have steps within one step Example: Step One Audit Sub-steps what to audit If you have more then break up the procedure Let s examine how to do the steps

46 Write It for the Customers as Well 46 Many times writing procedures includes explaining how to do it for your customers such as employees as well as payroll staff Can write both at the same time Basic English with no numbering etc. Explain exactly what you want them to do in simple steps Form W-4 is good example

47 Words to Paper 47 Never write a procedure from scratch while actually performing the task Just slows down your daily work Actually takes longer to write the procedures Don t do it even if you do multitask Causes you to skips steps Your mind works faster than your hand

48 But 48 Never write procedures strictly from memory either Leave out critical details that you always remember to do, when you are doing it If I can t write while doing it and I can t write from memory then what is left????

49 49 Combine the Two Write down the steps to the procedure you want to document Do strictly from memory Put down everything you can think of in the order you remember Don t leave anything out no matter how small a step Use easy, simple language Try using flow chart ZOT SPOT!

50 Combining the Two 50 Remember these are procedures not War and Peace don t keep working the wording at this point No researching or looking things up That s why you read it before starting the writing You have 20 minutes no more! Set an alarm if you have to!

51 51 Writer s Block These are not original works you can use other sources Example: for the purpose of the procedure for the Form W-4 use the one on the IRS website to get you started You can clean up and improve later You can get it off the internet Not a college paper do not have to annotate or cite no checking for plagiarism here Yes, you can use other people s procedures

52 52 Next Time You Perform the Task Take your procedures and try to use them Follow to the letter as you wrote them Don t add steps or do anything that is not written in the procedures Don t be surprised by what is left out or wrong -- it will happen Make the notations, update the procedures with your notes and then put it aside

53 53 Keep It Going Do the last step several times Remember writing procedures is not a quick process, especially when it gets to this point. Testing does take time But once you get one procedure done, it will begin to go quickly because you will begin to leave fewer things out the first time Always keep Zot in mind Do a review of the rules as you go along

54 54 When You Think You Are Ready Give your procedures to another person in payroll Let them perform the task using only the procedures They cannot add or subtract anything Both of you must agree they are accurate Settle ALL disputes first before moving on!

55 55 This is Where Disputes Will Arise Don t be surprised if the other person does the task differently This happens, especially in large departments Actually its one of the reasons for writing the procedures in the first place May need a third party mediator!

56 What If You Are Solo? 56 Give your procedures to your backup Try your boss! Another set of eyes is essential before casting the procedures in stone

57 Now For the Non-Payroll Test 57 When you are completely satisfied with your procedures, give them to a non-payroll person to read. Did you use any terms not explained? Are they easy to understand even to the lay person?

58 58 Not the End of the Process Now that the written procedures are complete you need to add the finishing touches for each procedure Add screen prints where needed Add samples and examples Add copies of forms where needed

59 Example 59 You have written the procedures for process a Form W-4 for your department. You should now include: 1. A copy of the form itself 2. Samples of how the form should be completed ZOT SPOT! Don t assume everyone knows what the form looks like in their memory

60 Putting It All Together 60 Once all the procedures on the list are written they need to go into a manual Number each one Order of processing is usually good Section for each procedure type may work best Table of contents is needed ZOT SPOT! Make the table of contents easy for anyone to find anything

61 Some Q and A That Always Comes Up 61 Long Hand or computer? always your choice Paper or electronic? I like both to accommodate all employee needs but make sure they don t make corrections on the paper Dating the pages? Date created and by whom, then date updated/reviewed and by whom Updating the procedures? minimum annually, that s why use forms How long will this take? Only Zot Knows!

62 62 A Few Tips to Speed it Up If you have a playground to use on your system, use that to test procedures that require a time frame to use such as quarter-end or year-end If not, write the steps for those time frame procedures ahead of schedule and have them ready to go when the time comes Build in the time to employee s normal day if possible rather than catch as catch can Create Procedure Day Try flowcharting the procedures first

63 Are There Any Questions? 63

64 How Can Ascentis Help Me? 64 Ascentis Payroll and Employee Self Service includes: W-2 and W-4 forms that can be downloaded with sample employee data and used for completed sample forms when writing payroll procedures. Since employee data is never purged from the system, you have a wealth of data to use for example purposes. Payroll and ESS administrators can view and download employee and employer W-2 forms with form totals based on the employee sort you choose at year end. Employees and ESS administrators can view and download employee Federal W-4 forms.

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