Payroll Practices. To outline the payment and payroll responsibilities throughout Covenant Health.

Transcription

1 Approved by: Payroll Practices Vice President & Chief Financial Officer Vice President & Chief Human Resources Officer Corporate Policy & Procedures Manual Number: IV-40 Date Approved December 15, 2015 January 8, 2016 Next Review (3 years from Effective Date) January 2019 Purpose To outline the payment and payroll responsibilities throughout Covenant Health. Policy Statement On designated pay days, Covenant Health employee pay will be deposited directly into bank accounts designated by the employees and other individuals who are paid through the payroll system. In extenuating circumstances manual pay cheques may be issued to individuals. Pay transaction information will be available on-line. All individuals paid through the payroll system and Covenant Health HR Shared Services Payroll Services will make reasonable efforts to prevent and address payroll errors. When applicable, potential discrepancies in compensation (overpayment or underpayment) will only be calculated and recovered for the twelve month period previous to the discovery of the error or as per the specific collective agreement. It is a shared responsibility of both Covenant Health and the employee to ensure the accuracy of compensation. Applicability This policy and procedure applies to all employees and other individuals who are paid by Covenant Health. Responsibility All individuals who are paid through the Covenant Health HR Shared Services Payroll Services are responsible to: a) verify the accuracy of their compensation - including hours worked, allowances, premiums, benefits, deductions, and rates of pay; b) contact their Manager to review any identified payroll exceptions or discrepancies. Refer to Appendix A - for responsibilities of Schedulers/Timekeepers and Time Approvers.

2 Procedure 1. Correcting Payroll Underpayments IV-40 Page 2 of Payroll information errors that are discovered will be corrected on the next scheduled pay day unless otherwise requested by the individual. 1.2 Corrections will be administered in accordance with the Employment Standards Code (Alberta) and the relevant collective agreement or other employment contract. 1.3 Upon written request from an individual who is paid through the payroll system to correct a payroll information error sooner than the next scheduled pay day, Covenant Health HR Shared Services Payroll Services will issue an off cycle payment. Such payment will be made as soon as reasonably possible. 2. Recovery of Payroll Overpayments 2.1 Upon discovery of an overpayment, Covenant Health HR Shared Services Payroll Services will advise the individual who is paid through the payroll system of the amount of the overpayment, and an explanation of how the amount was calculated. 2.2 An overpayment recovery from the earnings of an individual will be recouped in accordance with applicable collective agreements, applicable labour and case law, the Employment Standards Code (Alberta), Canada Revenue Agency guidelines, and any other employment contract. 2.3 Upon termination of the employment relationship, unresolved overpayments will be recovered from the individual's final pay in accordance with section Where the unresolved overpayment exceeds the amount of the final pay the individual will be contacted to discuss payment options. Should it become necessary, legal action may be taken to recover the overpayment. 3. Bank Payouts 3.1 An individual must request approval from his/her Manager for a bank payout. Bank payouts include hours in an employee s vacation bank, named holiday bank, and overtime/call back banks. 3.2 All approved requests will be processed in accordance with defined Covenant Health procedures. The Manager may approve or deny named holiday bank and overtime/call back bank requests. For vacation bank requests, the Manager must send the request details to the following for approval: o Upon written request, the Employee may be approved for vacation pay rather than vacation time with pay, for that portion of the

3 IV-40 Page 3 of 6 Employee s vacation entitlement that exceeds 15 days (prorated to their FTE) or the amount allowable as set out by the applicable collective agreement. Such requests shall be limited to twice per fiscal year. Refer to the Vacation Accrual and Utilization Policy, #II-125, for approval authorization 3.3 An approved payout request will be processed on the next scheduled pay date. 4. Termination When required, termination payments shall be processed as an off cycle payment. Definitions Covenant Health HR Shared Services Payroll Services means a shared service with Alberta Health Services (AHS). Manager/Management is an employee, or employee group who is in a position of leadership and has the responsibility of supervising employees. Off cycle payment means any compensation payments made outside the regularly scheduled payroll date. Overpayment means a compensation payment to individuals in excess of the intended or correct amount that can be measured in a dollar value including but not limited to wages/deductions, benefits, accruals, or premium underpayments which arise resulting from an administrative, processing or system error. Pay date means the date an individual is paid by the employer for a defined period of employment. Related Documents References Chronological Revision Date(s) Appendix A - Payroll Time Approvals Covenant Health Policies: Records Management, #III-55 Delegation of Authority for Human Resources Transactions - in development Delegation of Authority for Financial Commitments # IV-15 CompassionNet - e-people Quick Reference Guides Bank Payout Request Approving Bank Payout Requests Vacation Accural and Utilization Policy #II-125 Employment Standards Code (Alberta) N/A

4 IV-40 Page 4 of 6 APPENDIX A PAYROLL TIME APPROVALS Timely review and approval of worked hours and absences of individuals who are paid through the payroll system ensures accurate and timely payroll processing. 1. Official Time Records The payroll system is the official time record of individual hours and compensation. Original time source documents, including but not limited to time sheets, Environment for Scheduling Personnel (ESP) Daily Flow Sheets, s, or other forms of documentation, are retained for seven years and then destroyed in a confidential manner. See Covenant Health Policy - Records Management (Record Retention and Disposition), #III Responsibilities 2.1 Individuals who are paid through the payroll system accurately report to their Schedulers/ Timekeepers their hours of work, absences, and other exceptions from scheduled time for each pay period in the manner prescribed by the applicable Manager/Time Approver. Managers/ Time Approvers must ensure the daily adjustments/exceptions to the master/working schedule are clearly documented, authorized as correct by the Manager or their designate and provided to the Scheduler/Timekeeper for entry into the system (e-people / ESP). The source documents must match and there must be written evidence of verification/approval. 2.2 Schedulers/Timekeepers a) complete the required training prior to being granted Scheduler/Timekeeper access; b) record an individual's reported time into the system prior to the time approval deadlines of each pay period; c) correct an individual's reported time, as directed by the applicable Time Approver; and d) provide the time source documents to the Time Approver after time is entered into the system. 2.3 Time Approvers a) complete the required training prior to being granted Time Approver access; b) review for accuracy an individual's time entered by the Scheduler/Timekeeper into the system; c) advise Schedulers/Timekeepers and individuals of necessary corrections to an individual's time; and d) approve an individual's time in the system (e-people /ESP), as applicable, no later than the time approval deadlines of each pay period, as outlined in the payroll schedule.

5 IV-40 Page 5 of HR Shared Services a) retain electronic official time records in accordance with Covenant Health policy #III-55, Records Management; and b) review Time Approver delegations at least annually. 2.5 Covenant Health HR Support/Staff Scheduling Services provide training and support for Schedulers/Timekeepers and Time Approvers to ensure that the time entry and approval process is clear and understood. 3. Delegation of Time Approver Authority 3.1 During an absence or for other administrative reasons, Time Approvers must ensure that a back-up Time Approver is assigned at all times to review and approve time on their behalf in accordance with 2.3. If an alternate back-up Time Approver is needed, the primary Time Approver must complete the PeopleSoft User Access Request form and document the delegation in the prescribed format (including the duration of the delegation) for accountability and audit purposes. 3.2 Delegates must have the same level of authority or above as the Time Approver in accordance with Covenant Health Policy, Delegation of Authority for Financial Commitments # IV-15 unless there are limited and exceptional circumstances. 4. Segregation of Duties 4.1 Individuals who are paid through the payroll system: a) shall not be both a Scheduler/Timekeeper and Time Approver b) cannot approve their own time. 4.2 In limited and exceptional circumstances where the Time Approver has to approve their own time, the original Time Approver reviews and signs-off the Reported Time Authorization Report for the time approved. In these circumstances the Reported Time Authorization Reports are retained for a period of two years. 5. Escalation Process for Unapproved Time System-generated reminders will be sent to Time Approvers who have not approved time in the system for more than one pay period. Escalation s will be sent to the Time Approver's Manager to ensure time is approved in a timely manner by the Time Approvers. DEFINITIONS Official time record means an individual's approved time on the electronic records of the Covenant Health payroll system (e-people). Pay period means the defined bi-weekly pay cycle according to Covenant Health's payroll schedule, for which individuals receive pay.

6 IV-40 Page 6 of 6 Scheduler/Timekeeper means an individual with assigned authority for tracking and reporting individuals' time within a defined area of his/her responsibilities. Time approval deadline means payroll cut-off of each pay period for submitting approved time for payroll processing. Time Approver means an individual with the assigned authority for approving time. Time Collection Device (TCD) group is a specific group of employee s set-up in a secure timekeeping model for the purposes of timekeeping, time approving, and granting security access levels. Scheduler/Timekeepers and Time Approvers will be provided specific TCD groups to enter and approve time for employees. Time source document means any document used to update, record, and track employee time worked, and may include time sheets, ESP Daily Flow Sheets, s, or other forms of documentation.