Payroll Processes That Work

Zurich North America

Presented by:JoAnn AnnarellaJeff Johnson

Payroll Processes That Work

Presentation Outline• Zurich North America Overview• Timeline• Where We Started From• Where We Are Today• The Payroll Processing Checklist• Lessons Learned Recap• Future Goals• Contact Information

Payroll Processes That Work

Company Overview• 11,650 employees

• Third largest commercial insurer in the United States

• Over $10.9 billion in premiums

• U.S. Headquarters in Schaumburg, Illinois

Payroll Processes That Work

Zurich’sTimeline

Payroll Processes That Work

1998Initial Implementation begins1999Go-Live 3.1h ReleaseGo-Live Employee Self Service (myconnect)2000Additional Business Unit AddedAdditional Employee Self Service FunctionalityGo-Live 4.5b Release2001Re-Implement Organizational ManagementAdditional Business Units Added2002Added Canadian Business UnitGo-Live Manager Self Service

Payroll Processes That Work

July 1998

• Initial Implementation Begins

April 1999• Go-Live on SAP v3.1H

• 3500 Active Employees• 800 Retirees• 2000 Terminated Employees• Consultant Dependent

Payroll Processes That Work

Payroll Organizational Management

Master Data

TimeManagement

Benefits

Payroll Processes That Work

Payroll Processing Time - At Least Two Days-Why?

• Lost Payroll Resources• Attempted to mirror SAP to the legacy system (Cyborg)• RETRO - The Good, The Bad, and The Ugly • Processes - What processes?• Training - Where’s the training?• Consultants and Technical Support Ran Payroll• Inbound/Outbound process

Payroll Processes That Work

PayrollOrganizational Management

Master Data

TimeManagement

Benefits

November 1999Employee Self Service

“myconnect”

Payroll Processes That Work

November 1999•“myconnect” Original Functionality

• Benefits Enrollment Personal Information - Married/Single, Birthdate Bank Details Paid Time Off Summary Screen On-line Payroll Check Viewing

Payroll Processes That Work

January 2000

• Processed first year-end via custom programs• Converted Zurich business unit-additional 3000 active employees added to SAP HR

Payroll Processes That Work

February 2000

• Additional functionality added to “myconnect” (Zurich’s ESS)• Check Stub Display - More Details• Direct Deposit Enrollment• Address Change Functionality(locked records)• View Paid Time Off Accrual/Usage

Payroll Processes That Work

May 2000• Live on upgraded release 4.5B

October 2000 • CATS Pilot rolled out to a selected group for controlling purposes not Time Evaluation

Payroll Processes That Work

PayrollOrganizational Management

Master Data

TimeManagement

Benefits

November 1999Employee Self Service

“MyConnect”

July 2001OrganizationalManagement

Web Tool

Payroll Processes That Work

January, 2001

• Re-Implemented Organizational Management•Implemented Organizational Management Web Tool

• Converted Zurich Business unit-additional 1300 active employees added to SAP HR

Payroll Processes That Work

January 2002• Converted Zurich Canada business unit 500 active employees added to SAP HR

Payroll Processes That Work

PayrollOrganizational Management

Master Data

TimeManagement

Benefits

November 1999Employee Self Service

“myconnect”

February 2002Manager Self Service

“mygateway”

July 2001OrganizationalManagement

Web Tool

Payroll Processes That Work

Introduction of Managers Tool “mygateway”

• Employee Info• Awards@Work• Jobs@Zurich• Incentive Worksheet• Performance/Salary Review Worksheet• Employee Data Change Form Online• Zurich Web Sites

Payroll Processes That Work

Where are we today-Affects on Payroll Processing Time

• Employees have access to payroll information immediately via myconnect/ESS.• New programs put into place to extract payroll information more accurately and shorten payroll processing time. • Employee entries-Benefits, Address Changes, dependent information, emergency contact information• Improved Paid Time Off Calendar• Improved Check Stub--PDF

Payroll Processes That Work

• Manager Entry into SAP for Employee Awards• Over 10,000 employees paid through SAP• Experienced Staff- Payroll, Data Entry,

Organizational Management• Consultant Independent from Consultant Dependent.• Creation and use of the Payroll Checklist-- processing time now 4 hours.

Payroll Processes That Work

THE CHECK LIST

Payroll Processes That Work

Day 1 --

• Three days before payroll is processed send “Timekeeper Broadcast Message” to read Timekeepers please make all time entries prior to 6pm CT (enter date)

Payroll Processes That Work

Day 2--• Complete inbound checklist• Locked employee audit• Schedule Payroll Simulation and Time Evaluation

• Time evaluation runs at 7:00 p.m. utilizing programs that access TVARV table to maintain dates.

Payroll simulation runs after the system is backed up at approximately 1:00 am

• Delete BSI Messages (Tax Factory)

Payroll Processes That Work

Day 3--• Complete time evaluation log • Complete payroll job log(Simulation)• Send broadcast message to read--

• Payroll will be processing all day (enter date) any changes to employee records will have an adverse affect on payroll results.• Schedule live payroll and time evaluation--• Time evaluation to run at 7 p.m.• Payroll to run after backups approximately 1 a.m.

Payroll Processes That Work

• Clear benefit BDC session• Release payroll

• NOTE: Only release payroll after time evaluation starts as time evaluation jobs use the control record to set variant parameters.

Payroll Processes That Work

Day 4--• Complete payroll job log (live payroll)• Complete time evaluation log • Payroll corrections• Complete executive pay audits• Complete payroll audits/log• Release payroll• Run Time Evaluation (Matchcode W)

Payroll Processes That Work

Audit Report• Unexplained Net Difference• Negative or Zero Tax• Net Pay greater than 90% of Gross Pay• Change in net pay of $5,000 or more from last payroll• Active/Exempt employees with no results• Employees with a claim• Net pay under $25• Over 40 hours of overtime for this pay period

Payroll Processes That Work

• Run Payroll -Matchcode W• Review payroll Matchcode W spools• Verify employees in correction status is zero

• Note: payroll can not be exited if there are any employees in correction status

• Verify IT0009 accuracy (Only P or T permitted)• Run PRE-DME

Payroll Processes That Work

• Complete part 1 of the Check/Direct Deposit Balance Log

• Complete Pre-DME section• Attach hard copies of each spool

• Run DME-Checks• Complete part 2 of the Check/Direct Deposit Balance Log

•Complete DME information•Attach hard copied of each spool

Payroll Processes That Work

• Run DME-Direct Deposits• Complete part 3 of the Check/Direct Deposit • Balance Log

• Complete DME information• Attach hard copies of each spool

Payroll Processes That Work

Pre-DME

DME - Checks

DME - Deposits

Payroll Processes That Work

Check / Direct Deposit Balance Log 4/15/03

Part 1 - Pre DME - RPCDTU0

ID Transfer w/o Transferserrors not perf.

US

UH 10554P 43 0

UM

Part 2 - DME Checks - RFFOUS_CPart 3 - DME Direct Deposits - ZFFOUS_T_ABN

Checks Direct Deposits Total number Total Amt Bal To

Number Amount Number Amount DD & Check DD & Check PreDME

US

UH 16 27,688.12 27 27,771.78 43 55,459.90 Yes

UM

RSPL

Total

Payroll Processes That Work

• Schedule outbound jobs• Print outbound reports• Complete part 4 of the Check/Direct Deposit • Balance Log

• Complete the ADP information• Attach hard copied of the spool • List employees with errors and add to post payroll processing

Payroll Processes That Work

• Complete remittance total balance log• Convert ADP check file and zip• Balance ADP check file (OTI) to DME totals• Complete part 5 of the Check/Direct Deposit • Balance Log

• Complete the OTI information • Note any exceptions and verify balancing before file transmittal

Payroll Processes That Work

Payroll Processes That Work

• Send CEHP to ADP• Process check/direct deposit pull list• Fax cover sheet/pull list to ADP• Attach ADP documentation• Program to complete HR/FI transfer • Exit payroll• Complete outbound check list• Assign post payroll processing

Payroll Processes That Work

Payroll Processes That Work

Lessons Learned• Do not rely on consultants and technical resources to run payroll• Understand the affects of retro• Know your processes • Retain current payroll resources• Add optional functionality in steps• Train….Train….Train

Payroll Processes That Work

Future Improvements • FTP all vendor files• Paperless payroll process• Direct feed of salary changes-managers tool• Compensation Module• Organizational Chart Tool • Enterprise

Payroll Processes That Work

Payroll Processes That Work

Payroll Processes That Work

Zurich Canada---Payroll Checklist

Payroll Processes That Work

Zurich CanadaPayroll Master Checklist Payroll Period ___________

Day 1 Date: _________

Send "Timekeeper Broadcast Msg" email 1. Send email to USZ_ZTS_Basis the business day before the cycle begins.2. The Broadcast should read:

Currently not applicable Timekeepers please make all time entries prior to 6PM CT [enter date of Day 1].

3. The message should expire at night of above date.

Payroll Processes That Work

Day 2 Date: _________(8 business days prior to paydate)

Process Inbounds 1. TowersReceive 5 files from Towers from the web server

(Ron Guidice has been processing. There is a On PC, Click on the Start Button

data security issue with the server such that Click on Run

his ID is the only one with access to it) In the Run box type \\uszz1scweb39

Click OK Double click on the SAPdata folder Double click on the tperr folder Double click on the zipped file with the most recent date WinZip with open and list the five files. Set the extract directory to your c:\ drive Verify the All Files is selected and click the Extract button

Move files to SAP Server with ZPUPDOWN (execute transaction se38 in SAP) Ben.sap (variant - CANADA BEN.SAP) Bnf.sap (variant - CANADA BNF.SAP) Dep.sap (variant - CANADA DEP.SAP) Flxben.sap (variant - CANADA FLXBEN) Pension.sap (variant - CANADA PENSION)

2.Through the Lotus Notes Scheduling database request schedule HRCANIB to process immediately

3. Review output in spools.

4. Review reports and process resulting BDC sessions Print spool lists (transaction sm37) are in ZPSZPA*) Enter ZPIZAC* in the job name, * in the user nameProcess BDC sessions (transaction sm35)

Locked Employee Audit 1. In SAP, execute transaction SE162. Enter table name "PA0003"3. Enter the following parameters:

Table Name: PA0003 - then green checkPers. No. Locked: "X"Accounted To: "enter the pay period end date from 2 periods back" Double-click for selection options and choose >=

4. Note any exceptions on the cover sheet post payroll action items

Schedule Payroll Simulation and Time 1. Schedule the following through Lotus Notes Scheduling database:Please set up the following HR schedules to run this evening: HR Time Evaluation --HRCTEVL - 6:30 pm tonight

(Currently do not run sim - run real payroll Tonight after the backups (approx 1am):schedule name is HRCPRY) HR Payroll Simulation - HRCPYPS

(call scheduling at ext. 8055 or 1-800-643-5233 if problems occur )

Payroll Processes That Work

Day 3 Date: _________(7 business days prior to paydate)

Complete Time Evaluation Log 1. In SAP, execute transaction SM37(Pre-Simulation) 2. Enter the following parameters:

Job Name: "ZPSZPXCAT*"User Name: "BCHCTLM" or "*"Date: Applicable Date

3. If multiple jobs with the same name and date exist, enter times for an additional filter.4. Complete the Time Evaluation Log5. Correct errors / Run time evaluation for affected EE's

Complete Payroll Job Log 1. In SAP, execute transaction SM37(Simulation) 2. Enter to following parameters:

Job Name: "ZPSZPXC*"User Name: "BCHCTLM" or "*"Date: Applicable Date

3. If multiple jobs with the same name and date exist, enter times to further filter. 4. Complete the Payroll Job Log5. Correct errors / Run time evaluation for affected EE's

Send Broadcast Message email 1. Send email to USZ_ZTS_Basis the business day before Payroll runs.2. The Broadcast should read:

Currently not applicablePAYROLL will be processing all day [enter DOW] - any changes to employee records will have an adverse affect on Payroll results.

3. The message should expire at midnight of Day 3.

Schedule Live Payroll and Time 1. Schedule the following through Lotus Notes Scheduling database:Please set up the following HR schedules to run this evening: HR Time Evaluation - HRTCEVL - 6:30 pm tonightTonight after the backups (approx 1am): HR US Payroll - HRCPRY(call scheduling at ext. 8055 or 1-800-643-5233 if problems occur)

Note: Only release payroll after Time Evaluation starts. The time evaluationjobs use the control record to set variant parameters.

Release Payroll - CA 1. From the SAP main menu, select:a. Human Resources > Payroll Accounting > America > Canada

CA b. Payroll Accounting > Release Payrollc. Enter the appropriate payroll aread. Select "Yes" to release the payroll area

Payroll Processes That Work

Day4 Date: _________(6 business days prior to paydate)

Complete Payroll Job Log 1. In SAP, execute transaction SM37(Live Payroll) 2. Enter to following parameters:

Job Name: "ZPSZPXCA*"User Name: "BCHCTLM" or "*"Date: Applicable Date

3. If multiple jobs with the same name and date exist, enter times to further filter. 4. Complete the Payroll Job Log--START WITH TOP OF LOG TO VERIFY JOB

DOES NOT READ "TEST RUN (NO UPDATE)" AND THE NUMBER RANGES 5. Correct errors / Run time evaluation for affected EE's6. NOTE: Employees with message "PERSONNEL NUMBER CAN NOT BE

LOCKED" does not put employee in correction status on IT3. Must Look at employee and go to IT3 and put in CORRECTION status.

Complete Time Evaluation Log 1. In SAP, execute transaction SM37(Pre-Live Payroll) 2. Enter the following parameters:

Job Name: "ZPSZPXCAT*"User Name: "BCHCTLM" or "*"Date: Applicable Date

3. If multiple jobs with the same name and date exist, enter times to further filter. 4. Complete the Time Evaluation Log5. Correct errors / Run time evaluation for affected EE's

Payroll Corrections 1. From the SAP main menu:a. Human Resources > Payroll Accounting > America > Canada

CA b. Payroll Accounting > Correctionsc. Enter the appropriate payroll area in dialog box (CA)d. Select "Yes" to Make Corrections

3. Communicate to HR Service Center / Payroll

Release Payroll - CA 1. From the SAP main menu, select:a. Human Resources > Payroll Accounting > America > Canada

CA b. Payroll Accounting > Release Payrollc. Enter the appropriate payroll area in dialog box (CA)d. Select "Yes" to release the payroll area

Run Time Evaluation (Matchcode W) 1. From the SAP main menu:a. Human Resources > Time Management > Administration

CA b. Time Evaluation > Time Accountingc. Enter the following parameters:

Click "Selections from" and Choose Personnel Number and Payroll Area -Green check Evaluation Schema: /C04 Evaluation Up To: enter the last day in the payroll period From "Search help" select " W" --put "X" in payroll correction field

d. Program > Execute in Backgrounde. Click "save" icon (diskette).f. Click "immediate"g. Click "save" icon (diskette).h. Review spools for errors, correct and rerun as necessary.

Run Payroll (Matchcode W) 1. From the SAP main menu:a. Human Resources > Payroll Accounting > America > Canada

CA b. Payroll Accounting > Start Payrollc. Enter the following parameters:

Payroll Area: enter the appropriate payroll area (CA) for both "Payroll Period" and "Selection" Personnel Number: enter ranges if splitting into smaller groups Schema: /K00

Payroll Processes That Work

QUESTIONS????

Payroll Processes That Work

Contact Information

Jeff Johnson - SAP Project Manager jeff.johnson@zurichna.com 847-605-4366 JoAnn Annarella - SAP Specialist joann.annarella@zurichna.com 847-605-3442

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