Complex Payroll Solutions

Today’s payroll processes are more complex than ever. Payroll managers are required to ensure the accuracy of each paycheck as well as guarantee the validity of multiple third party system inputs. Employees working around the clock are often spread over multiple states and international locations, with infinite pay ranges and deduction variables – hence, today’s payroll manager has assumed a combination of legal, supervisory, and counseling roles.

Another layer of complexity arises from the nature of work in certain industries. Manufacturing, airline, oil and gas, drilling, and healthcare concerns manage 24x7 workforces to keep up with product demand and/or service levels. Attracting, motivating, and retaining employees around the clock are daunting tasks, and certainly necessitate a focus on compensation structures. Variables include establishing shift differentials to motivate employees to work on weekends; setting multiple overtime rates; addressing special requirements for specific deductions; and ensuring conformance to union policies and compliance standards. It is easy to see why payroll has become such a critical and complex function!

Historical Approach
Approximately ten years ago, enterprise resource planning (ERP) systems introduced applications with specific modules to address and solve payroll issues. However, as HR environments matured, many companies moved to a best-of-breed approach by outsourcing benefits, training, and even payroll functions. Over time, interfacing these third party systems to the core ERP system increased the time and resources needed to process each payroll. Additionally, multiple systems made detailed reporting of various payroll elements more difficult.

• Holistic approach
• Focus on Business issues and processes
• Leverage technical expertise in Service Oriented Architecture (SOA)
• Worldwide payroll experience from multiple industries
• Partnering capabilities
• Project Methodology

Animato addresses complex payroll concerns holistically.  By setting up time and labor rules that account for shift differentials, interfaces from time recording systems and other third party systems to your payroll system, and checks and balances throughout the payroll cycle to ensure accuracy, Animato provides new ideas to improve payroll processes and, where applicable, to take advantage of system functionality that may not be currently in use.  Undoubtedly, overtime exceptions continue to pose one of the most burdensome and high-risk compliance challenges in businesses today.  Accurate reporting can ensure that you are mitigating this risk. At the end of the pay cycle, Animato ensures that all reports are delivered in a timely, accurate, and efficient manner by using SOA technology and BI capabilities. 

Benefits

• Effectiveness – Our clients have recognized process improvements in collecting payable time, reducing off-cycle checks for pay corrections, and improving forecasting capabilities.  They have better control of their ERP systems as payroll and overtime management processes become more accurate.  Moreover, they are in position to better forecast expenses that support proactive decision-making. 
• Cost savings – Our clients have reduced maintenance and administrative resource needs to track and manage overtime by up to 20%.
• Improved alignment of HR department and business goals – Animato reviews clients’ corporate and departmental strategies to ensure alignment of objectives, systems, and business processes.  Clients have changed business processes to ensure that departmental and corporate strategies are coordinated to meet common goals.  This has improved HR relationships with other executives and department leads.

Conclusion
Many companies today find themselves paying third party organizations to do work that should be covered under maintenance fees and service level agreements for the systems they purchased 5-10 years ago.  Other organizations find themselves over paying employees for overtime because time recording systems are inadequate, the process of collecting time is not meeting standards, or the proper checks and balances are not in place to ensure accuracy.  Problems in these areas could lead to lack of confidence from employees, increased expenses, inaccurate tax calculations, legal ramifications, or even to possible audit deficiencies. 

Although payroll is more complex today and will continue to be a challenge for HR, risks can easily be reduced with proper planning and review of payroll processes.  Animato stands ready to collaborate with your compensation team to ensure that payroll is accurate, regulatory and compliance rules are met, reporting is delivered in a timely manner, and that legal risks to the company and employees are mitigated.