Payroll Integration User s Guide - Abbreviated Version

Payroll Integration User s Guide - Abbreviated Version This guide includes general instructions for the use of Employee Navigator s Payroll Integration product both for the client and for our partners. It is intended for use in conjunction with the Payroll providerspecific Appendix to this document. Both documents should be carefully reviewed. 1 P a g e

Abbreviated Client User Guide Section 1 Prefatory Information Employee Navigator has developed a Payroll Integration that allows you to share employee demographics and recurring deductions with your Payroll system and will allow your Payroll system to share employee demographics with Employee Navigator, all in real-time. Prior to going through the setup pieces of the integration, there are a few key points to note: Deduction codes that are tiered by coverage level If the Payroll system has deduction codes that are split by coverage level, then they will need to be consolidated in Payroll into one code per plan that includes a single, total amount. o An example would be LIFE, SLIFE and CLIFE codes for a Voluntary Life plan. We would need to choose one code and consolidate all coverage level amounts into that particular code within the Payroll system. Unsupported benefit deductions Currently, we do not support the following deductions to be synced with Payroll, and any changes or terminations to the deductions must be manually managed within the Payroll system: o Third Party Applications built through our Marketplace (Ex. of plan within Benefits tab) o Recurring Earnings o 401(k) o Universal Plans within Employee Navigator o Commuter Benefits New Hires who are initiated in Payroll once the group is Live When a new hire is entered into the Payroll system, the process for finding and completing them is as follows: o New Hire is entered into Payroll and feeds over to Employee Navigator. o From the group s Homepage in EN, click Incomplete Employees within the Status section and find the newly hired employee. o Click Re-Start Hire, and add the employee s Payroll Group and Class. Payroll Group and Class fields are not being exchanged within the integration* o Send out the Welcome Email if the specific employee is eligible to enroll in benefits. Compensation Requirements All compensation values must be configured in the Payroll system, as it will overwrite EN values since the API s direction of exchange for compensation is one-way, from Payroll to EN only. o We highly recommend that hourly employees have a Base Salary in payroll. o If an hourly employee is Part-Time, you must configure their expected Hours per Pay Period and Salary in Payroll to reach your expected Base Salary amount. It cannot be done in EN. o Commission-only employees can have a $0 amount for Annual Salary. *Refer to Payroll tab Integrated Fields to view which demographic fields are being exchanged for the integration. Your Payroll User Guide should have the corresponding field names that are being exchanged between Employee Navigator and Payroll as well. 2 P a g e

1.1 Setup Checklist Overview The checklist below, in order, summarizes items that need to be completed before the API can be switched from Audit Mode to On. Please utilize it as a reference as you begin to follow the corresponding steps covered in the guide on pages 4 through 8. Part One Set-up payroll group(s) in EN Confirm all employees are assigned to their appropriate payroll group Set-up payroll calendar in EN for each payroll group Pay dates must exactly match pay dates in Payroll System Add payroll deduction codes into EN. Be sure to address any codes in Payroll that are: Split up into multiple codes by coverage level Have multiple benefit plan types consolidated into one code Mark payroll group as required in HRIS Field Tracking Confirm benefit classes are setup appropriately to exclude non-eligible employees Part Two HR resolves discrepancies through the Employee Discrepancy Audit HR and Broker resolve discrepancies through the Deduction Discrepancy Audit HR provides missing required fields for any Incomplete Employees Group s homepage Incomplete Employees (within Status box) HR reaches out to EN to confirm that the Audit steps are complete EN contacts Payroll Provider to change API status from Audit to On 3 P a g e

Section 2 Integration Setup and Implementation The goal of this implementation process is to make sure that both systems have matching values for demographic and deduction data once the audits are completed. The implementation steps, in order are to: 1. Configure Payroll Settings 2. Configure Company Settings 3. Resolve Discrepancies through the Audits 4. Activate Payroll Sync and go Live 1. Configure Payroll Settings a. Setup Payroll Groups i. Confirm that the pay frequencies associated with your payroll groups match the pay frequencies assigned in the Payroll system. b. Setup Payroll Calendars i. Confirm that the pay calendar associated with each payroll group has the exact same pay dates as your Payroll system. ii. Make sure Payroll Calendars are setup for all necessary years (2017, 18, etc.) that are associated with any benefit plan dates in Employee Navigator. 1. (Ex.) Medical plan dates are from 12/1/17 through 11/30/18; make sure both 2017 and 2018 calendars are setup. c. Enter in deduction codes (see photo example below) i. Identify all codes in payroll that are associated with supported plans currently setup in Employee Navigator, and run a Deduction report in Payroll system. ii. Enter those codes into the Deduction Code section* of each payroll group for their corresponding benefit type. iii. Be sure to select the desired Transmission Option for each plan.* * To navigate to this section, click Payroll the desired Payroll Group name Deduction Codes (under Options). * See FAQs on Page 10. 4 P a g e

2. Configure Company Settings a. Verify the setting for New Hire enrollments. This cannot be set to Active. i. Benefits Settings Enrollment 1. Will be defaulted to Pending Until All Completed once placed into Audit Mode. b. Mark Payroll Group as a required field in HRIS tracking. i. Go to Settings HRIS Field Tracking Select Profile from the drop down. c. Assign Payroll Group(s) to all employees, if you have not already done so. d. Confirm that benefit classes are setup properly to exclude non-eligible employees, or employees who may not pay for benefits (i.e. Owners, etc.) Section 2.1 Resolving Discrepancies through the Audits You are now ready to confirm that the employee demographics and deductions match between the two systems. Employee Navigator has developed a tool that allows you to compare specific values between the two systems and, if there is a discrepancy, choose which value is correct and automatically update the incorrect system accordingly. The Audit process occurs in two distinct steps: The Employee Discrepancy Audit The Deduction Discrepancy Audit a. EN is the system of record for Deductions. Their direction of exchange is one-way, from EN to Payroll only. 1. Employee Discrepancy Audit Steps a. Generate a Demographic Report in your Payroll System per their instructions. b. Import the Demographic Report into Employee Navigator. i. To import: 1. Click on your Payroll tab in EN Employee Discrepancy Audit (under Integrated Payroll). 2. Click + Start New Import and follow steps to import file. 3. When you arrive at the Mapping stage, all fields will be pre-mapped for you. Do not alter these field mappings. c. Once report is imported and status reads as Complete, click on View Report to view the discrepancies. An example of what it might look like is below: 5 P a g e

d. There are four possible types of demographic discrepancies: i. Hire & Term Date 1. Two date discrepancies exist between both systems and; 2. You will need to manually adjust in the system where the dates are incorrect. 3. Once completed, you must import a new demographic file to resolve the hire/term discrepancies and push that employee into Needs Validation. ii. Missing from EN Employee is in Payroll, but not Employee Navigator 1. If employee was previously terminated and you wish to do so, you are able to block them from the integration. 2. If the employee needs to be added into Employee Navigator: a. You can Create the missing employee in Employee Navigator if they need to be in the system. b. Once created, employee can be found within the Incomplete Employees status on your Homepage, and you can click Re-start Hire. c. Add Payroll Group and Class to complete the Employee in the system. d. Send out the Welcome Email if necessary, if an employee is benefit-eligible, as the final step. iii. Missing from Payroll Employee is in Employee Navigator, but not Payroll 1. If Payroll accepts these records, you can push the employee over to that system. 2. If not, you must manually add them to Payroll and import a new Demographic Report into Employee Navigator, which will include the newly added employee(s). iv. Needs Validation Employee is in both systems, yet some integrated fields do not match between the two. The Audit value is the value in Payroll. 1. You must identify and select the correct value for all discrepant fields to sync an employee. 2. If a locked field is incorrect for an Audit Value, you must make a change in Payroll to correct it. a. Since the group is in Audit Mode, the correction will not exchange with EN just yet, and you will need to import a newly updated Demographic Report that includes the corrected value(s) to sync the employee.* 3. Once you have selected the correct value for each field, click Sync to send the selected data to the alternate system, and move on to the next employee. 4. This will effectively give the employee matching demographic data for each integrated field between Employee Navigator and Payroll. * EN Support Recommendation: Sync all employees who do not require manual adjustments in Payroll first. Then, make all adjustments needed in Payroll at once, so you will only need to pull one additional Demographic report from the Payroll system to re-import into EN and sync the remaining employees with their corrected values. 6 P a g e

2. Deduction Discrepancy Audit Steps a. Generate a Deduction Report in your Payroll System per their instructions. b. Import the Deduction Report into Employee Navigator. i. To import: 1. Click on your Payroll tab in EN Deduction Discrepancy Audit (under Integrated Payroll). 2. Click + Start New Import and follow steps to import file. 3. When you arrive at the Mapping stage, you will need to map the following fields to the proper column in the deduction file: a. Employee Payroll ID b. Deduction Code c. Pay Period Deduction Amount c. Once report is imported and status reads as Complete, click on View Report to view the discrepancies. d. There are eight possible types of discrepancies to resolve*: i. Deduction exists in both systems; is correct in EN 1. You can click Sync to Payroll to send deduction over to Payroll system.* ii. Deduction exists in both systems; is incorrect in EN 1. Deduction will need to be manually corrected in EN to match Payroll. iii. Deduction exists only in EN; is correct/incorrect 1. If correct, can be pushed to payroll through Sync to Payroll button. 2. If incorrect, needs to be corrected in EN and then synced to payroll. iv. Deduction exists only in Payroll and shows as Not In Sync; is correct/incorrect 1. If deduction should be in EN, needs to be manually added for the employee through their Modify Current Enrollments link. 2. If deduction should not be in payroll, it will need to be manually removed from payroll. v. Missing deduction code 1. If this status shows along with an amount over $0, then a plan is missing a deduction code within that employee s specific payroll group. 7 P a g e

vi. $0 amounts 1. Could be employer-paid plans or 100% contributions to plan coverage levels. Can be ignored; no need to send a $0 amount to payroll. vii. Duplicate Deduction 1. Can be ignored. viii. Employee Not Synced 1. The particular employee has no ID populated next to their name, and has not been synced through the Demographic audit. * After making any necessary adjustments or modifications to EN benefit amounts within plans or for specific employees, you must click within the Deduction Discrepancy Audit report to populate and view the correctly adjusted EN Deduction Amount. * When you sync deduction amounts from EN to Payroll, if necessary, then the amount transmitted to Payroll becomes that employee s new recurring benefit. This amount will be pulled from their paycheck the next time payroll is ran. Be sure that the amount you sync is correct. Section 3 Activate Live Payroll Sync and FAQs Once you have resolved all demographic and deduction discrepancies, please contact EN Payroll Support at Payroll@EmployeeNavigator.com to have them confirm. Frequently Asked Questions across both Audits Q: Why are some fields, like compensation, locked during the demographic discrepancy process? A: Fields that are locked during the discrepancy process reflect fields that payroll is the system of record for. For example, because payroll owns the compensation values in this integration, we will only allow you to select payroll s values for compensation when going through the discrepancy process. If you notice that Employee Navigator s value is correct, or the Audit value is incorrect, you will need to manually adjust that value in payroll and reimport the file to reflect the proper value within the demographic audit. Q: What if the employee s deduction amount is correct in payroll, but not in EN? A: If the deduction amount in payroll is correct, then a manual adjustment will need to be made in Employee Navigator. Employee Navigator is the system of record when it comes to deduction records, 8 P a g e

meaning that we will not take a deduction value from payroll. Please contact your broker if you run into this issue, as an incorrect deduction amount in EN could potentially be due to incorrect plan rates or costs, incorrectly enrolled coverage levels, or updated plan rates due to specific plan settings. Once a value is synced to Payroll, it will replace the previous deduction amount and become current. Q: What if I have commission-only employees who receive neither an hourly rate nor a base salary? A: You can still sync an employee through the Employee Discrepancy Audit with $0.00 populated for their hourly rate and salary fields within the Audit value section. With these types of employees, since their salary-based benefits are estimated off prior earnings, Employee Navigator has the Annual Benefit Salary field within the employee s Compensation tab. Here you can enter in the prior earnings amount that the system will look to when calculating salary-based benefit amounts. Q: Why would I want to an employee record from the integration? A: Below is a list of potential reasons you may want to block a record either during the Employee Discrepancy Audit or Deduction Discrepancy Audit During the Employee Discrepancy Audit o Employee shows within Missing from EN and you do not want the record to ever be created in Employee Navigator. Previously terminated employee that will never be re-hired. An employee you do not wish to track in EN such as an Intern. o Employee shows within Missing from Payroll or Needs Validation and you do not wish to exchange their data between the systems. During the Deduction Discrepancy Audit o Employee will have differing deduction amounts between EN and Payroll because: Of a previously negotiated rate agreement for the employee that cannot be accounted for in EN. Employee has a unique setup of their election amounts that you do not wish to account for in EN. o You can block an employee s deductions by going to Employee s Profile Apps Manage. Q: If fields are locked in Employee Navigator, can I still update them via the import tool? A: No. If the fields are locked in EN ( a Payroll ID populated for them. ), then they will be locked in the import for any employee that has The import tool will ignore values for locked fields. Q: Can you handle both Pre and Post-tax deduction codes for the same plan? A: Only if the employee is a 2% shareholder of an S-Corp, or a direct lineal descendant of an S-Corp shareholder. The particular employee must have the Statutory Class (within their Employment tab) set to either 2% shareholder of an S Corporation, or Direct lineal descendant to a S-Corp shareholder. This will allow EN to send the post-tax deduction codes for these types of employees. 9 P a g e

Q: Company owners or executives do not pay for benefits; how should we handle that? A: You should work with your broker to setup a benefit class for which benefits are 100% company paid to reflect the $0 cost for that segment of employees. *Q: Why would I want a plan set to Never Send to payroll? A: Users often have Company-paid plans with no employee cost, or plans that are unsupported within the integration, and we want to prevent the system from attempting to send deductions for these plans. Although there may not be a deduction code entered in for these plans, if Never Send is not selected, Employee Navigator will still attempt a transmission. This transmission will fail as expected, and can muddle up the user s payroll transmission dashboard. *Q: Why would I want a plan set to Don t Send $0 to payroll? A: Let s say you have a plan where Employee Only coverage is covered by the employer at 100%; however, for the Employee + Spouse coverage the employer only covers 50%. Employee Only coverage would give employees a $0 deduction, which does not need to be transmitted to payroll. Employee + Spouse coverage would give them a true deduction cost that we would want transmitted over to the payroll system. This setting allows for Employee Navigator to only transmit deduction amounts for the plan if they are greater than $0. 10 P a g e

Multi-EIN Groups Only Section 4 Setting Up and Managing Subscriber Groups The Subscriber Group allows for multiple connections to be made under one Employee Navigator company umbrella. If you have multiple EINs, you will be able to connect each unique Company ID in payroll to a corresponding subscriber group that you have created in EN. This is how Employee Navigator will be able to distinguish which EIN demographic data is coming from, or which EIN an employee s deductions need to be sent to. Note: You must create your Subscriber Groups prior to making your Partner Selection for the payroll product. Please follow the exact steps below to Create, Assign and Manage Subscriber Groups within EN: 1. Creating a Subscriber Group a. To create a subscriber group in a company, go to Settings Subscriber Groups. b. Click Add Subscriber Group +, and add the desired name for each of your subscriber groups. c. After your subscriber groups have been added, then you will want to use our Bulk Assign tool to assign your employees to the group. 2. Assigning Subscriber Groups a. We have created a bulk assign tool to allow you to easily assign Subscriber Groups to your employees. To access the bulk assign tool after your Subscriber Groups have been established, go to Company Settings Subscriber Groups, and click into a subscriber group. b. To assign employees to the group, click c. You are then able to assign employees to their unique Subscriber Group(s) using either the Basic or Advanced Options (by Business Unit, Division, etc.) 11 P a g e

3. Primary Subscriber Groups a. When dealing with multiple subscriber groups, a primary subscriber group needs to be selected. The first subscriber group that is assigned to an employee will be marked as their primary. i. Ex. John Reese s Apps section of his Profile tab reflects his Primary subscriber group, S2235, with a green check mark. b. Note: Payroll deductions will be sent from EN only to the Primary subscriber group. Compensation updates and hire/term dates will only be enforced on an employee s primary subscriber group. c. If an employee is assigned to multiple subscriber groups, demographic updates will be sent to all subscriber groups except for compensation updates, hire, and term dates. d. Compensation changes will only be taken from an employee s primary subscriber group. e. Hire and term dates will only be taken from an employee's primary subscriber group. 4. Subscriber Groups and the Discrepancy Process a. Since you are working with different subscriber groups you will need import a demographic and a deduction file per subscriber group. b. If there is a discrepancy with an employee's hire date, and they are assigned to multiple subscriber groups, we will give the user the option to keep the employee s current EN hire date the same for eligibility purposes upon selecting the correct date from Payroll. i. This will be the Preserve Hire Date pop-up window you will see. 12 P a g e

ii. Example An employee has a hire date discrepancy during the Employee Discrepancy Audit for their primary subscriber group. 1. Hire Date Value in EN is 5/1/2016 2. Hire Date Value in Payroll is 5/15/2017 3. If you select the payroll Hire Date, when you click the Sync button Employee Navigator will prompt you with a message allowing you to either: a. Click Yes to preserve the Hire Date in EN for eligibility purposes, and, leave the Payroll hire date in the Payroll system, or; b. Click No to have the payroll hire date overwrite what is in EN. Section 5 Switching Primary Subscriber Groups for an Employee If you have a current employee who you are moving to a new EIN in payroll to become their Primary EIN for compensation and deductions, you must follow these exact steps, in order, to successfully change their Primary subscriber group in EN and add them to their new EIN in payroll. Step 1. You must assign their new subscriber group in Employee Navigator first. a. Within the employee s Apps section of their Profile tab, you will need to Assign the new subscriber group. b. This will add it as an additional subscriber group under the Integrations portion of the Apps section. The new group will be missing the Identifier, and will only have a check mark for Demographics: Step 2. Then, go elect the new subscriber group as the Primary under Profile Employment a. From the employee s Employment section in EN, check off the box for the newly added subscriber group within the Payroll Integrations section, and Save. 13 P a g e

Step 3. Upon saving, you will be prompted with the Preserve Hire Date? question. a. If you elect, Yes, then EN will keep the current hire date in our system, and ignore the incoming hire date upon the first incoming Demographic update from the new subscriber group in Payroll. b. If you elect, No, then EN will accept the incoming hire date on the first incoming Demographic update from the new subscriber group in Payroll, and overwrite the hire date currently in our system. Step 4. The new Primary will now reflect as shown below within the Apps section. Step 5. a. The identifier, also known as the employee s payroll ID, will still be absent (Example, S2234 above) because it has not exchanged into Employee Navigator from the new EIN in Payroll just yet. Lastly, you will go into your Payroll system and hire the employee in their new EIN. a. This new demographic information, including the identifier, will exchange into Employee Navigator and update in our system for the employee. 14 P a g e