Human Resources and Payroll Demonstration Script

By June 21, 2015

1 Human Resource Processes
1.1 Classification and Posting
A department has a vacancy in a position where job responsibilities have changed. They need to determine whether to update the current position’s job description or to create a new position. The administrator requires the ability to access information on different job descriptions by entering key descriptive words to the system, which would then link to job descriptions to select applicable job classes. Once the appropriate job class is selected the administrator needs the ability to prepare a job description on-line. The administrator would log into the system to process a position posting form which identifies the type of position, position number, start and end dates, job requirements and skills, account(s) from which the employee will be paid and other relevant information. The system would automatically route the posting / job description for approval based on information entered on the posting/job description.
After the manager completes all required fields, he/she requires the option to automatically reflect (encumber) the anticipated cost of salary and benefits for this position in his/her department’s budget through an interface with the financial accounting system.
1.1.1 Demonstrate how software allows a manager to update the job description on-line including how the software allows the manager to access both internal databases and external systems to identify appropriate job classifications and descriptions. For example, a user should be able to enter attributes such as a position type, job description keywords, salary range, and classified positions. Once entered, the system generates a potential list of titles and job descriptions and routes as appropriate for approval.
1.1.2 Demonstrate the on-line posting process for a new position and how the system recognizes what type of position (e.g. faculty, staff will be filled) and the benefits associated with it. Show how the system automatically completes relevant data fields based on user input of department number. Also show how the organizational structure is modified to accept the new position and provides for the new reporting structure.
INTEGRATION POINT:
1.1.3 Demonstrate how the system:
• Optionally verifies the funding availability (i.e. using data from the financial accounting system.)
• Allows user, if desired, to automatically encumber salary and benefits for a specified period in the financial accounting system, etc.
• Deactivates an open but unfilled posting, including the impact on all affected databases such as the encumbrance of funds in the General Ledger.
1.1.4 Show how a user would specify a group or range of postings to review or print.
1.1.5 Demonstrate your software’s ability to automatically post approved openings via several methods to several locations including campus electronic bulletin boards, University’s Internet home page, and state job service centers.
1.1.6 Demonstrate ability to post and hire multiple employees from a single posting.
1.2 Position Control
A position control function will include the following tracking and other features:
• Status of employee positions (recruitment, hire, status changes, attrition, reduction in force)
• Authorization, budget availability, commitment
• Budget generation, projection, reporting.
1.2.1 Demonstrate how positions are created, maintained and changes tracked over time at various organizational levels, including incumbent and funding information.
1.2.2 Show how position control features may be partially implemented (in one department, not in another).
INTEGRATION POINT WITH BUDGET:
1.2.3 Demonstrate how position control encumbers wage and salary funds, reallocates budgets, lapses salary dollars to a reserve account and transfers back when an open position is filled for defined accounts, warns of over-commitment, and allows for projection of salary activity towards the end of the year and interacts with the new fiscal year roll over.
1.2.4 Show how multiple funding sources, expiration dates, and percentages are handled within all position control features.
1.2.5 Describe how position control system supports multiple temporary assignments. .
1.2.6 Demonstrate how to establish and maintain an unlimited number of job classes that will include the following attributes:
• Unlimited rates/steps within each class
• Rate ranges by job class
1.2.7 Demonstrate ability to override a class exemption on a position basis.
1.3 Applicant Processing
Applicant enters resume/professional information into a central database via Interactive Voice Response, Internet, Kiosk or by providing a hard copy which is automatically scanned by a central processing office. The system will provide help to users to accomplish this process, including informing the applicant of required qualifications/skills based on positions applied for.
The applicant could: 1) apply for a specific position(s) or request resume to be kept on file for appropriate vacancies; 2) search the system for open job positions; 3) present appropriate application online, which includes Affirmative Action/Diversity information; and 4) applicant’s preference for campus location. The system will inform the applicant of testing/search process involved for positions based on their indicated interests. In the case where there are state required examination processes, system will schedule, administer tests where possible, score exams, and notify applicants of their exam scores electronically and by generating a standard notification letter.
If applicant is a current employee, their information will be obtained from existing databases. The employee also has the option of providing resume/professional information for processing.
The system would match the open postings with qualified applicants in the database and route this list of candidates automatically along with the applicants’ resumes and other appropriate documentation to the administrator and/or other interested parties indicated on the posting. The system notifies applicants once they are selected for consideration for a position. The system will have the capability to generate standard reference, including educational and diploma, check letters, phone, fax, email and general contact lists. After selection is made, the administrator enters the selection which triggers a routing of the appointment to the user defined list for electronic approval. Administrators must enter information on candidates not selected and can enter general comments on any or all applicants. System would generate standard rejection letters to candidates not selected.
After the applicant is selected, the system would provide a letter of offer template for modification and routing for approval based on position and the user defined requirements. The system will know by position when to create the letter, prior to acceptance for faculty and post acceptance for staff. System will generate notification to applicant if a pre placement physical/drug test is required and automatically notify relevant departments of this requirement. In addition, if appropriate, the system will transmit the applicant’s data to appropriate agency for criminal checks.
Also, managers would have the ability to perform ad-hoc searches on the applicant database. The system will also provide data on underutilized categories both at department and position level.
Applicant Inquiry and Information Entry
1.3.1 Demonstrate the process for entering, storing and retrieving applicant data, including digitally imaged documents and or Optical Character Recognition (OCR), in your system. Describe the structure of your database in relation to this information, and any relationships with other database tables.
1.3.2 Demonstrate the applicant’s ability to identify units of the institution to which the application must not be distributed.
1.3.3 Show how your software supports applicant on-line inquiries for status of their application.
1.3.4 Demonstrate the ability to inquire about all open positions and positions closed in the last 3 months.
Referral and Screening
1.3.5 Show the process for matching applicant skills to position requirements/skills. Also show your software’s ability to screen applications to determine that selection requirements are met. This may include eliminating applicants who do not meet education, license requirements or training criteria, current employees on probation or former employees terminated for cause.
1.3.6 Demonstrate how your software rank orders applicants on specific user defined criteria (e.g., years of experience, examination scores, etc.).
1.3.7 Demonstrate ability for hiring officials to access the entire database of active applicants at any time and run a “trial pool” of applicants using potential screening criteria.
1.3.8 Demonstrate capability to generate standard letters and email centrally, at the department level, or both, at various points during the application process that may include request for letters of reference, notification of test schedule and letters of offer and acknowledgment.
Hiring
1.3.9 Demonstrate ability to permit electronic capturing of ad hoc comments (including reasons for selection and non-selection) and an on-line transaction history to track who did what and when.
1.3.10 Demonstrate ability to identify hired and canceled applicants to all units with active referrals.
Special Requirements
1.3.11 Demonstrate how an employee can be direct-hired without a posting and show the minimum data required to do so.
1.4 Maintenance of Employee Data
After an applicant is hired and final approval occurs, the system automatically changes status of applicant to employee, which automatically transfers all applicant data to employee database. Once the employee is hired the system automatically assigns an employee PIN number which the employee uses to access the system. The employee accesses the system to enter their personal data including address(es), marital status, taxes, I-9, ADA information, and bank deposit authorization. The system will automatically provide benefits eligibility information based on the employee’s position. Where required, this information will be routed to appropriate insurance and benefit carriers and financial institutions.
Whenever an employee’s personal data is modified, the employee and department is to receive a confirmation of the changes showing the effective date. Also, if any documents require the employee’s signature, the system generates hard-copies for employee signature.
1.4.1 Show how your system automatically transfers all applicant data to employee database after hiring as well as prompts for the addition of information not captured at the application stage (salary rate, account codes, etc.). In addition, show how the system permits updates to information that has changed since the application was first entered.
1.4.2 Show how your system can extract and update employee information from existing internal employee history databases for an applicant that is hired, but who was a former employee.
1.4.3 Demonstrate how your system allows employees to update address, benefits, and other required personnel forms applicable to the employee. This should include providing descriptions of benefit plans and ability to print or email required forms based on user definitions.
1.4.4 Demonstrate how employee history is established, changed and maintained for paid and unpaid appointments, including:
• tenure review dates,
• full-time salary rate, as well as actual FTE and dollar cost,
• tenure status,
• years in rank,
• years of employment on calendar, fiscal and grant year bases,
• employment start date,
• service time in current position,
• merit ratings,
• positions held and dates,
• leave/sabbaticals,
• probation,
• classification status,
• length of service,
• medical leave,
• funding,
• separation,
• etc.
1.4.5 Demonstrate the ability to handle future-dated transactions and the process that will flag the transactions as active after the effective date has passed.
1.4.6 Show the ability to maintain multiple:
• values in data fields, including multiple appointments, with different end dates, with multiple payment distributions;
• date fields to administer benefit plans and legal requirements;
• addresses including full international addresses;
• effective dates for all types of employee actions, milestones, and eligibility attainments for all types and categories of employees, and logic including sabbatical, performance evaluations, and leaves, and
• end dates for various fund sources

Discuss the limitations of each of the above points.
1.4.7 Demonstrate the ability to reverse incorrect entries before and after they are applied (e.g., terminated employee in error, cancellation of hire, perform reversal on a specific date, entry suspend and resume capabilities, and approved status) and retroactively, automatically adjust any compensation and deduction for the period in error.
1.4.8 Demonstrate multiple position titles per employee, including but not limited to classification titles, working titles and administrative titles and functions (e.g. Vice-President, Dean, Chair, Fiscal Administrator, Manager, etc.) and discuss any system limitations.
1.4.9 Demonstrate how automated salary increases are accomplished based on anniversary dates or other user defined criteria and how details of various plans are created and stored.
1.4.10 Demonstrate ability to restrict number of hours worked in an employee calendar year and how easily it is over-ridden and show how to pay and track an employee who is paid with multiple pay records, generate automatic letters email to departments, and notify employees through earnings statements, with alert warnings for:
• students working more than 20 hours per week in the academic year;
• wage employees approaching 1500 hours or greater in the prior rolling year; and
• students and non-exempts working more than 40 hours of straight time in a week.
1.5 Compensation Management
The University uses a common annual review date for classified staff with merit ratings and an increase matrix that provides an acceptable range of salary increase percents.
INTEGRATION POINT:
1.5.1 Demonstrate how salary increases generated in budget work sheets feed the new fiscal year budgets, HR records, and payroll.
1.5.2 Demonstrate on-line how the system enables administrators from different business units access to the records of a single employee across units, make changes to the record (including changes of FTE, dollars paid, etc.), and seek appropriate approvals for the changes.
1.6 Non-Resident Alien Tax Processing
VU employs a variety of non-resident aliens including faculty, staff, students, NAFTA trainees, and fellowship/traineeship candidates (both degree and non-degree). Non-resident aliens are subject to special taxation and reporting rules and may be subject to provisions of a tax treaty.
Payments issued by VU including tuition and fee waivers, fellowships and scholarships, paid through Financial Aid or Accounts Payable are also subject to special taxation and reporting rules. The same applies to Independent Contractor payments.
Regardless of the office issuing a payment to a non-resident, the Human Resources system must track the individuals and incorporate any payment information into the monthly and year-end non-resident alien tax reporting and determination of residency status for tax purposes.
Currently VU is meeting these needs with an in-house system developed in 1994. We are in the process of migrating to an outside vendor product, WindStar, that is expected to be operational by July 1st, 1998. This system provides the subsequent features:
• Programmatically determines resident alien/non-resident alien tax status
• Maintains a visa history
• Analyzes tax treaties for applicable benefits and limitations
• Determine withholding requirements
• Produces and completes IRS withholding forms
• Creates audit reports
• Creates tax status report of tax residency status history
• Defines payroll requirements
Additionally the WindStar product will create the following forms and supply the related information when available:
• #1004 Exemption Certificate
• #1078 Certificate of U.S. Residence
• # 8233 Exemption from Withholding and Supporting Statement
• #8843 Statement for Exempt Individuals
• #W-4 Employee’s withholding certificate
• #W-7 Application for IRS I.T.I.N.
• #W-9 Taxpayers Identification Number Request
1.1 Describe how your system would handle the collection and monitoring of data for all students, employees and vendors including the ability to maintain tax treaty tables, with effective dates for all tax code changes:
• Student Status
• Foreign Nationals
1.7 Benefits Administration
The University offers health/dental, basic life, optional life, supplemental health, accidental death, retirement, tax deferred annuities (TDAs), flexible spending accounts, other optional insurance (e.g. Short term disability, Long term disability, long term care, COBRA) to active and retired employees at VU and other affiliate agencies. The primary health plan is self insured. The State also offers health, dental and life for which some employees at VU are eligible. Eligibility for VU and State is based on several factors such as job class, percent of time employed, type of leave, salaried vs. wage, appointment period, decreased hours with full benefits, and other insurance plan criteria.
Every eligible employee has the option of selecting premium-only plans and spending accounts.
Retirement plans are determined by the employee eligibility. Plans are administered by different agencies in and outside VU.
Benefits Administrators perform market and trend analysis, data modeling for benefits and retirement plans, and cost planning. These Administrators will use employee information in a shared data base and import other market information outside VU to produce various analysis reports and/or queries to better assist in the design, implementation and administration of benefits plans.
Establishing and Maintaining Benefits Information
Once every year VU changes some or all of the benefits plans. This change is done for the next year, while processing for this year continues.
1.7.1 Demonstrate how the following benefit plan information is established and maintained:
• Plan date and year per benefit
• Plan Eligibility requirements
• Plan Carrier
• Plan Cost per employee / employer
• Plan Cost per dependent
• Plan Employee / Employer contribution
• Plan Hours worked
• Plan Coverage level and type
• How third-party administrator supplied information is incorporated
The premiums for benefits can be paid in several ways. The employee or the employer may pay the entire amount or the costs may be shared by both. The premium may be a flat amount based on a rate table, % of certain components of pay, or it may vary by employee based on an annual goal amount. The employee paid premiums may be pre or post tax deductions.
1.7.2 Demonstrate establishing the premium structure for a benefit that is pretax with the employee and employer each paying a share based on the level of coverage selected (i.e. health insurance).
1.7.3 Demonstrate the ability to make a mass change to the benefits.
1.7.4 Demonstrate how the following employee information is established and maintained:
• Employee birth date
• Employee age
• Employee salary
• Employee sex
• Employee months worked (i.e. 9, 10, 11, month employee)
• Benefits salary to include base and supplemental salary
• Employee plan eligibility date
• Employee initial set enrollment date
• Employee rolling enrollment date
• Employee declined date
• Employee prior notification date
• Spouse name
• Spouse gender
• Spouse SSN
• Spouse birth date
• Spouse benefit plan
• Spouse Primary Care Provider (PCP)
• Coverage start and end dates
• Premium start and end dates
• Benefits historical data
• Identification of department-paid employee benefits
• Provider PCP & OB/GYN PCP
• Date retired
• Health Care Credits for retirees

• 12 or more iterations of the following:

• Child(ren) name
• Child(ren) PCP
• Child(ren) birth date



• 3 or more iterations of the following:

• Beneficiary name for life insurance (multiple plans)
• Beneficiary name for 403(b), 457, 401(a) plans
• Beneficiary detailed information (e.g. address, phone).

1.7.5 An employee’s eligibility for benefits may change as the employee changes positions and/or status. Demonstrate what would happen if an employee changes positions that makes them eligible for a different benefit plan (i.e. retirement, life insurance, etc.).
1.7.6 If both spouses are state employees, they are eligible for reduced health insurance premiums. Demonstrate how the separation of one spouse employee will automatically trigger the change in eligibility for the other employee.
1.7.7 Demonstrate how types of leave affect benefit continuation or redistribution of employee/employer costs.
1.7.8 Demonstrate the ability to escrow premiums for (summer) months for employees (faculty) who are paid over nine months.
1.7.9 Demonstrate the automatic feed to payroll for benefit deductions (both employee and employer).
Employees have 60 days after a qualifying event to change retirement plans or health insurance coverage.
1.7.10 Demonstrate how the selection of a change in health coverage, which is 60 days retroactive, is reflected in the benefits system.
1.7.11 Show the ability to support COBRA benefits, including the tracking of dates and generation of initial letter. Indicate how the data from COBRA will be automatically transferred to third party health administrator.
1.7.12 Demonstrate how the retroactive change in health coverage premiums is passed to payroll for a retroactive change in health care plans.
1.8 Benefits Interactive Voice System with Web Accessibility
1.8.1 Demonstrate how employees access the Interactive Voice Response system IVR and Web to enroll during open enrollment, make a change and/or view benefits at any time during the year.
During open enrollment for coverage to begin January 1 of the next year, an employee adds a new dependent that is also eligible to be covered for this year.
1.8.2 Demonstrate how next year and this year changes are processed so they apply to the correct year.
1.8.3 Show how the IVR can be used by employees to change personal information and show how confirmation of these changes can be delivered via Messenger Mail, email, or automated fax.
1.9 Tax -deferred Annuities
VU offers 403(b) annuities, commonly referred to as TDAs, to its employees.
1.9.1 Demonstrate the calculation of the maximum exclusion allowance (MEA) for optional TDAs, including the maximums for optional special elections and the 15 year special alternative.
1.9.2 Show how the following are established and maintained:
• Multiple dates of hire plans
• Multiple eligibility and vesting for different retirement plans
• Separate compensation accumulators for each retirement plan
• Hours of service and service amounts for each retirement plan for each employee
• Summary accumulators for retirement plans and TDAs by employee and by category (e.g. one retirement plan in one pay cycle).
• Summary accumulators of all TDAs for each employee.
• Separate accumulators of each flex item for each employee
• Summary of all flexed items for each employee
• TDA option
• TDA type
• MEA amount
• SRA date
• 15-year date
1.10 Deductions
Deductions to an employee’s pay can be established by fringe benefit activity, by another entity (i.e. parking fees, intramural fees) and by the employee (i.e. charitable contributions such as the United Giving, credit unions).
1.10.1 Discuss any differences in the creation, input, and maintenance of these different types of deductions.
1.10.2 Demonstrate and set up and maintain deductions, including the following range of functionality:
• Unique taxation definitions (e.g. 403(b), flex spending accounts, health insurance)
• Flat-dollar amounts, including simultaneous multiple checks (e.g. parking & transportation)
• Capability to establish a declining balance deduction and a specific amount each month that automatically stops when the balance is zero (e.g. tuition payment plan, intramural fees, United Giving).
• Calculate deductions based on specific earnings types
• Limit deductions to segregated groups of employees (e.g. educational leave, faculty house staff, classified staff)
• One-time deductions or one-time overrides to deductions
• Status-code related deductions and stoppages
• Ability to switch annualized deductions from a 9 to a 12 month pay period with adjustments for prepayments
• Ability to define a provider to a specific deduction type
1.10.3 Demonstrate capabilities to establish start/stop dates for deductions (e.g. United Way, Flex), to establish ceilings for deductions and have the system automatically stop the deduction when it is reached (e.g. garnishments), and to set up a deduction with appropriate future effective dating (e.g. new health insurance plan year).
Employees have 60 days after a qualifying event retroactive to the start date of that qualifying event to decide on a health insurance plan, and 90 days to decide on a retirement plan.
1.10.4 Show how retroactive deductions to salary are handled including both additional deduction amounts and refunds and show how employee balances and ledger are automatically adjusted
1.10.5 Schedule deductions by frequency & pay cycle (i.e. every second bi-weekly). Show how to split deductions unequally between pay periods (e.g. if employee’s pay is less than the total deductions or to process insurance deductions in advance of a leave without pay and issue billing when deduction cannot be processed). Override the frequency on an employee basis.
An employee is on Leave Without Pay, but has elected to continue their health insurance coverage.
1.10.6 Demonstrate the system’s flexibility for placing deductions in arrears or recycling, including:
• “Automatic” arrears for insufficient pay (reduced hours) or no pay
• Take arrears amounts in next pay cycle, and the cancellation of arrears upon “catch-up”
• Ability to select which deductions are put into arrears and how those are handled for full, partial or no arrears applicability.
1.10.7 Show how the system handles deductions that are prepaid.
VU has been notified a few days before pay day that a garnishment is to be withheld from an employee’s pay check and that a new net pay amount needs to be established and disbursed.
1.10.8 Show how to handle garnishments, wage assignments, tax levies, or child support and be able to re-prioritize the pre-determined deduction priorities:
• Prioritization of deductions
• Calculation of correct amount to “back into” required net pay
• Enter limit or ceiling amounts
• Simultaneous multiple garnishments
• Effective date functionality
• Percentage of disposable income or net pay needs to be definable
• Retention of garnishment/wage assignment history
• Handling of administrative fees