HIRE TO RETIRE SOLUTIONS FOR BUSINESS

Transcription

1 HIRE TO RETIRE SOLUTIONS FOR BUSINESS October 7, 2008

2 Today s Speaker: Jack Ducanis Vice President of Sales, BB&T Payroll Services Jack Ducanis has over 24 years experience in the payroll and employer services industry in a senior management capacity with two Fortune 500 organizations. In the past two years, Jack, as a member of BB&T s Payroll Services Corporation, has assisted BB&T in launching its Employer Services initiative. Jack has been involved in helping thousands of companies by overseeing the implementation of an Employer Services strategy designed to streamline their internal processes and integration of their employee benefit needs. 2

3 AGENDA Overview of Employer Services Rapid Movement to Integrated Employer Services Components of Employer Services Payroll and Tax Services Information Systems and Resources Retirement and 401(k) Services Workers Compensation Employee Benefits Employee Banking Closing Remarks Question and Answer 3

4 OVERVIEW OF EMPLOYER SERVICES What is the current market definition of Employer Services? A suite of products that meet an employer s core requirements to outsource their HR needs Payroll and Tax Services Employee Benefits Retirement 401(k) Services Workers Compensation Employee Banking Programs Information Systems & Resources Why is this important to your company? The value it brings to you for your employees, it helps create a more satisfied workforce, which in hand is a more productive workforce. The cost and time savings that it creates for you the company. In addition, consolidating multiple components of data for better decision making capability. 4

5 RAPID MOVEMENT TO INTEGRATED EMPLOYER SERVICES Our economy is now driven by knowledge and human capital. That capital is becoming harder to attract and retain. More than 25% of the U.S. working population will reach retirement age by 2010, resulting in a potential worker shortage.* (U.S. Bureau of Labor Statistics) In 2010, 10 million positions will not find suitable candidates.* Global demands are making it harder to compete for the best people a talent war is being realized. Attract Hire Train Motivate Service Retain.* Source: (U.S. Bureau of Labor Statistics) 5

6 RAPID MOVEMENT TO INTEGRATED EMPLOYER SERVICES An increased appreciation for the value of Human Capital Management has moved Human Resources from being administrative to strategic. The following charts illustrate the growth rate from 1985 to 2006 moving from 10% administrative to 90% strategic.* * Source: Internal Revenue Service 6

7 RAPID MOVEMENT TO INTEGRATED EMPLOYER SERVICES Technology has allowed increased function and integration. There is a growing demand among small to middle market businesses for fully integrated employer solutions from one single vendor. Data integration Web-based portal Reporting This reduces the amount of vendors they utilize. This provides their businesses more functionality and more convenience. The Internet is acting as the catalyst for companies to outsource and automate all areas of Human Capital Management. 7

8 WEBINAR AUDIENCE QUESTION #1 How many employees are in your company? Over 250 8

9 PAYROLL AND TAX SERVICES Why do companies outsource their payroll and tax processing? There are many reasons. Streamlines operations in order to increase employee productivity- employees can focus on other tasks Lowers internal costs Provides insulation from the IRS Creates a backup for all payroll information 9

10 PAYROLL AND TAX SERVICES Insulation from the IRS Average weekly payroll has 268 calculations, deposits, and filings (federal tax, state tax, FICA, state unemployment, federal unemployment).* All of the above must be exact; there is no 99% accurate payroll.* Over 40% of tax notices are due to mispostings by the IRS.* Employers must keep abreast of over 400 law changes annually to payroll related regulations.* * Source: Internal Revenue Service 10

11 PAYROLL AND TAX SERVICES Provides backup for all payroll information Provides backup for all payroll information Records must be kept for 7 years Fraud Protection/Risk Management Computer problems Employee attrition Disaster recovery 11

12 WEBINAR AUDIENCE QUESTION #2 How do you currently process your payroll? In-house manually In-house utilizing software Accountant Outside service bureau Other 12

13 INFORMATION SYSTEMS AND RESOURCES Comprehensive HR Information Systems will provide you access to information in order to monitor trends, examine details and improve results. Increases Management Reporting Personnel reporting Applicant tracking Performance reviews 13

14 INFORMATION SYSTEMS AND RESOURCES Pre-hire and post-termination services Fact: More than 75% of illicit drug users age 18 and older are employed full or part time. That s approximately 16% of the working population* Solution: Comprehensive pre-hiring background screening and drug testing. Fact: Employee turnover costs U.S. businesses $11 billion annually.** Solution: Best practices to improve retention and boost your reputation as an employer. Fact: 68% of plaintiffs in wrongful termination trials were victorious, with an average award over $650,000.*** Solution: Best practices in termination to help limit your company s liability * Source: Government s Annual Household Survey on Drug Abuse in America ** Source: Bureau of National Affairs *** Source: The Rand Institute for Civil Justice 14

15 INFORMATION SYSTEMS AND RESOURCES Automated Time and Attendance There can be problems with manual time and attendance Manual Data entry error Automated Diminished paycheck errors that need to be addressed Human error associated with manual calculation of payroll costs employers between 1% and 8% of the gross payroll.* Cheating by employees Unauthorized overtime Inability to determine true labor costs Potential violation of several state and federal laws Dramatic decrease in time cheating by employees Fair and uniform application of overtime authorizations Accurate data on employee productivity Ensure compliance with all state and federal regulations * Source: ADI 15

16 RETIREMENT AND 401(K) SERVICES In the last 30 years, the retirement landscape has changed dramatically. People are living longer and for most workers, a 401(k) has become the primary vehicle for retirement savings. The major benefit to offering quality 401(k) plan benefits is that they help build loyalty among current employees, and attract talented and experienced prospective employees. A quality provider will offer: Bundled retirement plan solutions that will fit your needs Exceptional customer service Fiduciary support and trustee services Personalized participant communications Quality investment choices Seamless integration with your payroll provider 16

17 WORKERS COMPENSATION Workers compensation is a critical part of your company s outlay. There are tools available to help reduce the effects on your bottom line. Stay in control of cash flow Save time Avoid overpayment of workers compensation 17

18 EMPLOYEE BENEFITS As heath care costs continue, there has been a growing emphasis among employers on how to manage their benefit plans. Consumerism: Provides innovative solutions to help combat the effects of rising health care costs to you. Wellness programs IRS Section 125 programs (FSA, HSA programs) Technology: Online tools to help automate the benefits cycle. Online benefit website and employee enrollment Communication: Resources including: Customized enrollment guides and employee benefits booklets 18

19 EMPLOYEE BENEFITS IRS Section 125 Plans (FSA/HSA) IRS Section 125 plans allow employees to use pre-tax dollars to help pay the cost of insurance and other benefits. Because of their tax advantages, these popular plans are closely regulated. These plans include: Premium-Only plans Employees use pre-tax dollars to pay a portion of premiums for group medical and dental insurance or pay the full premium for voluntary plans such as dental, accidental death and cancer insurance. Flexible Spending Accounts (FSAs) Employees designate a portion of their pre-tax salary to set up a fund to cover out-ofpocket health and dependent care expenses. Health Savings Account (HSAs) Employees covered only by a High Deductible Health Plan set up a fund to pay for qualified medical expenses tax free. 19

20 FLEXIBLE SPENDING ACCOUNTS 20

21 EMPLOYEE BANKING In an employee banking program, company employees are eligible for exclusive banking benefits, including bonus deposit rates, discounts on loans, and more. These programs enhance company benefit packages, increase employee moral, productivity and retention, and if contingent upon direct deposit of payroll, reduce administrative costs and save employers time and money. Direct deposit: 98% of all companies offer direct deposit to their employees* 65% of all employees receive direct deposit* Payroll Cards: Approximately 56 million Americans do not have a checking account* These consumers pay approximately $1.5 million annually in check cashing fees* * Source: American Payroll Association 21

22 WEBINAR AUDIENCE QUESTION #3 How many providers do you currently use to deliver Employer Services? or more 22

23 VALUE OF EMPLOYER SERVICES Why is this important to your company? Benefits for Employers Reduced turnover Streamlined HR processes Reduced administrative costs Increased productivity Reduce exposure to fraud and regulatory issues Benefits for Employees Timely receipt of paycheck Reduces lost time Better access to personal information Work for a company investing in the employee 23

24 CONCLUSION Thank you for participating today! Please contact BB&T Payroll Services at: BBT.com\payrollservices or visit your local BB&T Financial Center You will receive a short webinar evaluation via . Your feedback is important to us Member FDIC. Only deposit products are FDIC insured. 24