(T) Section 12 payroll systems and technology

Question 2

What is the main objective of any payroll system?

Answer 2

Provide for compliance with federal, state and local withholding, depositing and reporting requirements.

Question 3

What are other objectives of a payroll system?

Answer 3

• Issue timely and accurate paychecks, direct deposits and other disbursements- Maintain adequate records of all data and transactions- Prepare internal reports- Satisfy cost-saving objectives- Guarantee the security of the system

Question 4

What is Interfacing?

Answer 4

When multiple systems use an interface, important data is moved or copied to a center repository.-Data for multiple systems is sharedEx: TBA and PeopleSoft

Question 5

What are some of the internal and external systems that typically require a direct interface with payroll?

Answer 5

• Human Resources- Benefits- Time and Attendance- Tax Deposits

Question 6

What is Integration?

Answer 6

A system that provides a shared database for human resources, payroll and benefits information. This eliminates double data entry.

Question 7

What are reasons for Integration?

Answer 7

• Eliminates double data entry- Makes better use of available staff- Eliminates timing issues- Greatly reduces data discrepancies- Streamlining the payroll, HR and benefits functions- Complete data in one location- Reduces the time spent interfacing- Establishes a foundation for employee and/or manager self-service applications

Question 8

When the payroll team is looking for new Payroll hardware and software what alternatives do they typically consider?

Answer 8

• Service Provider (outsource the process)- In-house computer with custom-designed software- In-house computer with vendor-supplied software- A combination of the above

Question 9

What are the advantages to outsourcing the Payroll to service providers?

Answer 9

• Low fixed costs- No extra space or employees needed- New services can be added- Reduction in processing delays- Variable processing costs- Fewer research problems- Networking possibilities- Training and support

Question 10

What are the disadvantages to outsourcing the Payroll to service providers?

Answer 10

• Lack of control over security- Responsibility for filing errors- Unique needs create problems- No control over breakdowns

Question 11

What are the advantages to In-House Payroll systems?

Answer 11

• Control of the system- Convenient access- System security- Scheduling flexibility

Question 12

What are the disadvantages to In-House Payroll systems?

Answer 12

• Sufficient secure space needed- High fixed costs- Additional staffing- System may be working below capacity- Shelfware/not all aspects of software being used- Disaster recovery planning a must- Wrong computer may be chosen

Question 13

What process is taken to select a computerized payroll system?

Answer 13

1. Build a Project Team2. Analyze what the system needs to do3. Prepare a Request for Proposal (RFP)4. Select a System5. Implement the System6. Evaluate the System’s performance

Question 14

What are the steps for Implementing a system?

Answer 14

1. Prepare for implementation2. Train team members and the payroll staff3. Conduct a ‘gap’ analysis (determine if there are any gaps in functionality)4. Convert old data and add new data5. Test the new system - Parallel testing (the final test before going live6. System Conversion

Question 15

What controls are put in place for the automated payroll system?

Answer 15

Putting Controls into the Process- System Edits- Periodic data auditing and sampling- Batch Controls- Correction procedures- Balancing ReconciliationSystem Documentation- Process documentations- Step-by-step procedures

Question 16

What are system edits?

Answer 16

A warning or alert built into the system that checks for errors and either corrects the error or notifies the operator that something may be wrong.

Question 17

What personnel concerns are put in place for the automated payroll system?

Answer 17

• Segregation of Job Duties- Rotation of Job Assignments- Paychecks go only to employees- Conduct physical payouts

Question 18

What system security is put in place for the automated payroll system?

Answer 18

• Limit System Access- Secure files- Develop audit trails- Protect against computer viruses- Back up data and store it off site

Question 19

What physical plant issues are controlled for the automated payroll system?

Answer 19

• Climate-controlled rooms- Keep terminals from overheating- Do not store in cold area- Protect against power surges- Keep dirt out of components- Keep the humidity down- Check for adequate power

Question 20

What are the steps for Disaster Recovery?

Answer 20

Identify recovery time objectives.Identify critical resourcesDetermine if part of the process can be performed manuallyFind and secure interim office spaceArrange office equipment rentalFind suitable temporary housing for employeesKeep back up files off premisesKeep employee safety uppermost in any plansCommunicate the planUtilize electronic “vaulting” - keep an up-to-date copy of all systems software, and data in another location

Question 21

What are the benefits of automated time and attendance reporting?

Answer 21

Less time spent on processingFewer errorsDecreased costs

Question 22

What are ways in which employee self-service applications can be delivered and used by employees?

Answer 22

Personal computersKiosksInteractive Voice Response systemInternet and Intranets

Question 23

What are the benefits to Manager Self-Service?

Answer 23

This application allows managers to see data when they want to see it and how they want to see it, thereby cutting down the time needed to review and input information as well as make decisions.

Question 24

What steps should be taken to implement internet technology?

Answer 24

Build a project management teamSelect hardware and softwareEncourage use of the technologyAddress security concernsDevelop codes of conduct

Question 25

What is a Web-Enabled Application?

Answer 25

One that uses the internet as another means of accessing an organization’s data and the HRMS application itself.