In our current fiscal environment districts must work to streamline their organizations. It is critical that we evaluate technology and services to

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2 In our current fiscal environment districts must work to streamline their organizations. It is critical that we evaluate technology and services to supplement our needs in an era of growing responsibilities and less staff.

3 What are the concerns? Time, labor and resource intensive process. 1. Involves the Applicant, Human Resources, Payroll, Administration, and the Board. 2. Advertising and recruiting. 3. Sufficient pool of substitutes to meet district needs. 4. All past and present substitute records must be kept on file in the Human Resources office. 5. Use of resources such as paper, toner, fax machine, copying machine, etc. 6. Healthcare Reform

4 What is the Process to Fill a Substitute Position? Evaluate how much time staff is expending on filling an absence. Who is involved in the process? What resources are used in the process? Ask Yourself: Is this an efficient use of time and resources?

5 For Example - SCASD has 600 full time teachers and an approximate absentee rate of 9%. SCASD uses: On average, 54 teacher substitutes per day or 9,720 teacher substitutes per year Last year, we hired 312 substitutes. This includes 232 teacher substitutes and 80 support staff substitutes. How much time does this take and how many staff members are involved in this process? This information does not include the hours needed for paraprofessionals, food service, maintenance or transportation.

6 Cost Analysis: What the District is currently spending on hiring and maintaining substitutes Hard Costs Administration Management Time Payroll, Taxes, Social Security, Workers Comp, Unemployment, PSERS Advertising, Recruiting, Screening, Background Checks, Storage Space, Equipment, Support Staff, Paperwork Over seeing job requirements, planning, performance Training, Orientation, Processing, Phone Calls, Scheduling

7 What Subcontracting Does A subcontractor will take care of all the: Recruiting Interviewing Advertising Training And be responsible for each substitutes : Worker s Compensation Liability Insurance Unemployment Tax Claims State Audits Record Keeping Background Checks Financial Reports Two of the most important benefits are time and money!

8 How a Subcontractor Will Help More efficient way to find substitutes for teachers, paraprofessionals, and support staff. Building principals and secretaries will no longer need to spend time to find daily substitutes. All substitute hiring, clearances, paperwork and payroll information will be done by subcontractors, allowing for efficiencies for staff and the ability to focus on other responsibilities. Substitutes will not accrue seniority in the District, nor length of service credit for the purpose of tenure under Public School Code of Substitutes will not obtain status of a participant in any pension program, including but not limited to PSERS. Potential savings of taxes and monetary penalties surrounding the Patient Protection and Affordable Care Act, referencing the 30 hours as full-time provision.

9 A Subcontractor Will: Free the District from any and all employer income taxes or other employer liabilities such as Worker s Compensation. Ensure the compliance of its substitute teachers with all state, federal or local tax requirements. Abide by all State and Federal laws and regulations applicable to the employment of substitute teachers. Provide liability insurance against malpractice or improper actions taken by substitute teachers. Free the District from the responsibility for ongoing monitoring of the 30 hours for compliance with Health Reform.

10 A Subcontractor Will Maintain: All Requisite Payroll Services All Employer Taxes All Unemployment Compensation Insurance All Workers Compensation Insurance

11 With A Subcontractor, the District Can: Reject any substitute teacher provided to cover an absence if the substitute does not adequately perform duties required. Hire and employ any long-term substitute or use the subcontractor to provide this service.

12 What Impact Will PPACA have: To be considered affordable, the employee s share of the premium for the employer s lowest cost self-only coverage cannot exceed 9.5% of the employee s adjusted household income for the taxable year. HOW WILL YOU DETERMINE THIS? If an employee purchases subsidized coverage on the Health Care Exchange this triggers a no coverage penalty of $2,000 x #FT Employees 30 (For example at SCASD this would mean $2,000 x 1, OR $2000 x 1270 = $2,540,000) If insurance is unaffordable, the penalty is $3,000 x # employees on the Health Care Exchange.

13 Summary of Considerations Example: Hard Cost Factors Daily Rate: $90.00 Social Security: $ 5.58 Medicare: $ 1.31 Workers Comp: $ 0.43 PSERS: $15.24 $ Other Considerations All advertising, recruiting, interviewing and processing new hire paperwork will be handled by the subcontractor. Risk Avoidance Liability, WC, UC and PSERS Reimbursements for Physicals, Clearances, Testing Discipline of substitutes (building level and district level) Orientation of substitutes Reduction of staff overtime Free the District of PPACA penalties.

14 QUESTIONS