Payroll at IU

Learning objectives

• Define deadlines associated with payroll processing,

• Review, update, and approve Kuali Time timesheets,

• Review, update, and approve Human Resource Management System, or HRMS, payroll vouchers,

• Initiate and submit HRMS adjustment vouchers, and

• Locate resources to assist you in payroll processing

How pay is calculatedStep 1

• Calculate employees’ gross pay.

Step 2• Deduct pre-tax benefits.

Step 3• Calculate taxes on taxable gross pay.

Step 4• Deduct after-tax benefits and deductions to arrive at net pay.

Step 5• Generate direct deposit file, pay advices, and paychecks.

Roles in payroll processing

Roles in payroll processing

• Employees (53,000+)• Record work hours and review pay advices for errors.

• Supervisors (6,500+)• Verify accuracy of hours recorded by employees.

• Payroll Processors (340+)• Ensure employee payments comply with university

policies and procedures.

• University Payroll (12)• Create and manage payroll policies and procedures.

numbers reflect individuals in that role as of 2018

Additional support

• IUPUI Payroll Office• Answers questions regarding payroll procedures on the

IUPUI campus

• Regional Central Payroll Offices• Answer questions about payroll procedures at the local

level

• Fiscal Officers and Fiscal Approvers• Responsible for financial integrity of departmental

accounts

University Payroll

Employees

Payroll Processors

Supervisors

Pay groups

• A classification that determines when an employee receives their regular, or on cycle, payment.

• Determine the type(s) of benefits an employee qualifies for.

• Two categories: non-exempt or exempt

Non-exempt employees

• Paid for hours worked during pay period.• Pay period consists of two consecutive weeks.• Subject to Fair Labor Standards Act (FLSA).• Paid overtime or accrue compensation time for

hours worked over 40 in one work week.• Track work hours in timekeeping system.• Pay groups: BW1, BWP, HRR, HRP, etc.

Exempt employees

• Receive same lump sum payment each pay period.• Pay period consists of one calendar month.• Do not record hours in a timekeeping system.• Do not receive overtime pay or accrue

compensation time.• Pay groups: A10, A12, S10, S12, etc.

The Payroll Lifecycle

On cycle payroll

• Regularly scheduled payments to employees.• Determined by pay group.• Different deadlines associated with non-exempt

and exempt pay groups.

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Non-exempt payroll lifecycle

Beginning of pay period

End of pay period


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End of pay period

Supervisor timesheet

approvals due midnight


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End of pay period



Payroll Processor timesheet

approvals due 3 p.m.

Kuali Time extract

• Occurs at 3 p.m. on Wednesday.• Kuali Time is locked by University Payroll.• No longer able to edit timesheets.

Kuali Time HRMStimekeeping data

What happens if a deadline is missed?

• Kuali Time “auto-approves” the timesheet.• Pushes timesheet forward in payroll process

Avoid auto-approvals!


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End of pay period



Job Pay Flag Cutoff at

5 p.m.


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End of pay period





Payroll Processor

HRMS vouchers due

4 p.m.


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End of pay period





Payroll Processor

HRMS vouchers due

4 p.m.

Close payroll


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End of pay period





Payroll Processor

HRMS vouchers due

4 p.m.

Close payroll Pay day

Exempt payroll lifecycle


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End of pay period


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End of pay period

HRMS Vouchers Available


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End of pay period


5 p.m.



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End of pay period


5 p.m.

Payroll Processor

HRMS vouchers due

4 p.m.



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End of pay period


5 p.m.

Payroll Processor

HRMS vouchers due

4 p.m.

Close payroll



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End of pay period


5 p.m.

Payroll Processor

HRMS vouchers due

4 p.m.

Close payroll

Pay day


Off cycle payroll

Off cycle payroll

• Any payment to an employee outside of their regularly scheduled payment.

• Initiated when Payroll Processors submit payroll corrections via adjustment vouchers.

• One off cycle payroll per week.


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Off cycle payroll lifecycle

Off cycle cutoff at 10:30 a.m.






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Off cycle pay day

Off cycle pay day

Off cycle pay day

Off cycle pay day

Pay run IDs

Pay run IDs

• Unique identifier for a payroll.• Standard naming convention.• Used to search for payroll information in HRMS.

B 035 102717

B = biweekly payrollM = monthly payrollO = off cycle payroll

B 035 102717

35th payroll of this year

B 035 102717

Check date: October 27, 2017

B 035 102717

Kuali Time

Kuali Time introduction

• IU’s preferred timekeeping system.• Used by non-exempt employees.• Tracks work hours and benefit time balances.• Communicates with HRMS to create, update, and

end job assignments.

Timekeeping options

Clock entry• Clock in to Kuali Time at

start of shift.• Clock out of Kuali Time at

end of shift.

Manual entry• Manually enter work hours

in Kuali Time at end of day.• Must enter work hours and

end of each work day per IU policy FIN-PAY-020.

Timesheet review and approval

Policy FIN-PAY-020

“…Approvers and Payroll Processors must review and approve all hours worked and attendance records of non-exempt staff before they are submitted for payment.”

Supervisors

• Verify accuracy of hours logged on timesheets

• Correct time blocks

Payroll Processors

• Verify earn code compliance with policy and procedures

• Add time blocks

Restricted earn codes

• Not available to employees or Supervisors.• Supervisor notifies Processor when restricted earn

code is required.• Must be added by Processor on timesheet approval

day.• Examples:

• INJ – injury time• SCB – schedule change bonus

Compliance resources

• University Payroll Standard Operating Procedures (PSOPs),

• University Policy website,• Master Earn Code List

In order to verify compliance refer to…• University Payroll Standard Operating Procedures

(PSOPs),• University Policy website,• Master Earn Code List and,• Your University Payroll clerk or your Central Payroll

Office.

Editing timesheets

Auto-approvals

• Occurs when timesheet approval deadline is missed• Kuali Time forces timesheet forward in the payroll

process.• Logs note to timesheet as user TKSYSTEM.

Warnings and errors in Kuali Time

Warnings in Kuali Time

Limit of hours

NEP/NEC calculation

32 RGH hours8 VAC hours

.5 NEC hoursAccrue: Paid:

Earn code specific

Leave accrual balance exceeded

SCK = 7.40 hoursCPT = 0.15 hoursVAC = 8.45 hoursTotal = 16.00 hours

SCK = 7.40 hoursCPT = 0.15 hoursVAC = 8.45 hours

Total = 16.00 hours

24-hour clock outs

24-hour clock outs

• Kuali Time will continue to track work hours for 24 hours.

• Once clocked in for 24 hours, Kuali Time clocks the employee out and logs a note.

24-hour clock outs

• 24-hour time blocks must be updated!• If not updated, result in employee overpayment.

• Overpayment must be collected from the employee• IU Policy FIN-PAY-050

• Correct via Missed Punch Document or by Supervisor or Payroll Processor.

Errors in Kuali Time

Expected hours not met

Hours charged to invalid assignment

Overlapping time blocks

Kuali Time extract

• Timesheets must be approved by 3:00 p.m. on Wednesday after the end of the pay period.

• At 3:00 p.m., University Payroll locks Kuali Time.• Timesheet data is extracted and transferred to

HRMS.

Time extract errors

• Timesheets containing errors will “drop” and require manual adjustments in HRMS.

• University Payroll…• Monitors the time extract for errors and,• Will contact you if manual adjustments are needed.

Extract errors are rare and University Payroll and your Central Payroll

Office are here to help!

Human Resource Management System

HRMS

• Every active employee has a payroll voucher.• Vouchers created based on job assignment

information.• Created and updated by HRMS eDocs

• Final review of employee hours and salary before payment

HRMS uses pop-up windows

Talk to your local IT professional for help with browser settings.

Hourly vouchers

Pay group DescriptionHRR Temporary without benefitsHRP Temporary with retirement benefitsHRW Temporary Workstudy

Updating and approving Hourly vouchers

If timesheets were approved in Kuali Time and no changes are needed…

…no additional review and approval is required in HRMS

Correct timesheets in Kuali Time

Updating Hourly vouchers

Updating Hourly vouchers example

On Thursday morning, Julie, an HRR temporary employee in Financial Management Services, told her Supervisor that she forgot to log 4 hours of work on the last Friday of the pay period.The Supervisor confirmed that the hours were worked, and notifies you of the correction.

Biweekly staff vouchers

Biweekly staff vouchers

Pay group DescriptionBW1 Biweekly staffBWP Biweekly professional staff

Expected hours - PTO hours = Total regular hours

40 - 16 = 24

Updating biweekly vouchers

Updating biweekly vouchers

• Updates must be made by 4:00 p.m. on Thursday• Changes should be rare

• Majority of changes should be made in Kuali Time

• Updating benefit hours used

Updating benefit hours used example

Amanda, a BWP employee in the School of Public Health, Bloomington, was absent 2 hours during the first week of the pay period. She used paid time off, earn code PTO, to cover her absence.Thursday morning, Amanda contacts you and tells you she wants to use sick time, earn code SCK, to cover the absence, since she missed work due to a doctor’s appointment.You contact Amanda’s Supervisor. She approves of the change.

Updating job funding

Updating job funding example

Charlie, a BW1 employee, works in the Biology department on the Bloomington campus. He recently started working on a project involving a grant from the National Science Foundation. Half of his regular wages are now funded by the grant and the remaining half are funded by his department.

An HRMS eDoc has been initiated to update his job funding permanently, but was not finalized by the Job Pay Flag Cutoff. Because the cutoff was missed, we must update his job funding manually on the voucher.

Monthly staff vouchers

Exempt employees

• Do not receive overtime pay or accrue compensation time.

• Do not record hours in a timekeeping system.• Receive same lump sum payment each pay period.• Pay period consists of one calendar month.


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End of pay period


5 p.m.

Payroll Processor

HRMS vouchers due

4 p.m.

Close payroll

Pay day


Calculating monthly pay

S12 employee annual salary = $60,000

Monthly payment = annual salary ÷ number of paymentsMonthly payment = $60,000 ÷ 12Monthly payment = $5,000 per payment

Monthly voucher approval

• Monthly payroll vouchers must be manually approved every pay period

• Deadline: 4:00 p.m. on pending voucher cutoff day

• When possible, wait until pending voucher cutoff day to approve vouchers

• Ensures you are approving the most up-to-date version of each voucher

Updating monthly vouchers

Updating job funding example

You are a Payroll Processor in the School of Music on the Bloomington campus. John, an A10 employee, collaborated with staff from Speech & Hearing Sciences to help them complete their work on a grant. Your Fiscal Officer informs you that The School of Music and Speech & Hearing Sciences agreed to split John’s regular salary for the month.

This month, 75% of his salary will be paid by account 10-426-32, his regular job funding account in the School of Music, and the remaining 25% will be paid by the Speech & Hearing Sciences grant account, 44-335-14.

Reducing monthly pay

Reducing monthly pay example

You are the payroll processor in the African Studies department on the Bloomington campus. The benefit time administrator notifies you that Joanna, a S12 employee, missed two days of work this month and does not have benefit time available to cover the absences. The administrator requests Joanna’s current month’s pay be reduced by two work days.

You contact Joanna and her director and fill them in on the situation. Joanna is now aware that her payment will be reduced by two work days.

Introduction to adjustment vouchers

Adjustment vouchers

• Initiated by Payroll Processors in HRMS• Used to correct payments to employees from prior

pay periods• Can be included in on cycle or off cycle payroll

Off cycle payroll

Any payment to an employee outside of their regularly scheduled payment.


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Off cycle pay day

Off cycle pay day

Off cycle pay day

Off cycle pay day

Off cycle pay day

Types of adjustment vouchers

Three categories:• On cycle• Off cycle• On line

On cycle adjustment vouchers

• Processed during the employees next on cycle payroll

• Employee receives payment via regular payment method i.e. direct deposit

• No fee for on cycle adjustment vouchers

Off cycle adjustment vouchers

• Processed during off cycle payroll during the current work week

• Employee receives payment via regular payment method 1-2 business days after processing

• Fee of $55 per off cycle adjustment

On line adjustment vouchers

• Processed and paid the same day it is requested• Employee receives payment via paper check

• Check may be picked up by payee, Fiscal Officer, or Account Manager

• Check may not be picked up by Payroll Processor per IU policy FIN-PAY-010

• Pick up from Customer Service or Central Payroll Office

• Fee of $85 per on line adjustment

Adjustment voucher fees

• Charged to employee job funding account• Fees cannot be charged to grant accounts• Continuation account must be provided to accept

fee for adjustments associated with grant accounts

The Job Data resource

Before you start…

Collect the necessary information:1. Employee’s university ID number2. Employee’s job record number3. Job funding account number

Use the HRMS Job Data resource to find this information

Initiating an Adjustment Voucher

Adjustment voucher example

You work in Financial Management Services, a University Administration unit. It’s Monday and you receive an email from a Supervisor in your department. Bernard Lowe, a BW1 employee, was shorted 2 hours of overtime on February 23, 2018. The Supervisor requests that Bernard’s pay be corrected by the end of the week.

Before you start…

Collect the necessary information:1. Employee’s university ID number2. Employee’s job record number3. Job funding account number

Adjustment voucher examples

Non-exempt employee shorted hours during two

different weeks

Example:You receive an email from Brian, a temporary employee in your department, who states that his paycheck was short by 8 hours. Brian checked his timesheet and found that 5 hours were missing on April 10 and 3 hours were missing on April 19.

You contact Brian’s supervisor and she confirms that Brian worked on these dates and that the hours were not included on his timesheet. The Supervisor requests that Brian’s missed pay be processed by the end of the week.

Brian’s employee ID number is 0001066886, his job record number is 0, and his job is funded by account 10-487-55.


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April 2018

5 missing work hours



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April 2018



Beginning of work week

Ending of work week

Correcting benefit time used

Example:You’re copied on an email conversation between Justin, a biweekly employee in your department, and his Supervisor. Justin states that he mistakenly used 5 hours of sick time, earn code SCK, to cover an absence on February 5. He meant to use vacation time, earn code VAC, to cover his time out of the office.

He has requested that his benefit time be corrected. The Supervisor responds to the email and requests Justin’s accruals be updated.

Justin’s employee ID number is 0001065614, his job record number is 1, and his job is funded by account 10-326-00.


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February 2018

5 SCK hours used

Beginning of work week

Ending of work week

Missed additional pay due to late eDoc

Example:Prof. Spears is a distinguished A10 faculty member in your department. She started teaching an extra class in January and is receiving an academic overload as payment. Due to vacancies in your department, the additional pay HRMS eDocwas not finalized until March 14.

Due to this delay, Prof. Spears did not receive her additional pay for the months of January and February. She wants her check today.

Her employee ID number is 0001278315 and her job record number is 0. Her academic overload is funded by grant account 40-297-50. Your Fiscal Officer agrees to have the payment processed today, and instructs you to charge the fee to your department’s continuation account, 23-297-89.

Reducing future pay due to overpayment

Important notes:

• This process applies to pay groups S10 and S12• Contact University Payroll for assistance reducing

payments to pay groups A10, A12, AS0, or AS2

• This process applies to overpayments collected in the same tax year they were paid

• Contact University Payroll for assistance collecting overpayments from previous tax years

• Any time employee wages are reduced, complete the Overpayment Acknowledgement & Wage Adjustment Authorization form.

Example:Emma is a S12 employee in your department. Your benefit time administrator contacts you and notifies you of an overpayment. Emma was absent 5 days in March and could only cover 4 days with benefit time. The administrator requests that Emma’s next payment be reduced by 1 day of work.

You speak to Emma. She is aware she was overpaid and agrees to have her next payment reduced. She completes the Overpayment Acknowledgement & Wage Adjustment Authorization form and you file the form in your department.

Emma’s employee ID number is 0002412109 and her job record number is 0. Her job is funded by two accounts: 10-208-00 and 23-208-00. Each account is responsible for 50% of the job funding.

Pulling it all together

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The payroll lifecycle

Beginning of BW pay period

Beginning of MO pay period


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MO HRMS vouchers available


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BW HRMS vouchers available


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Ending of BWpay period


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approval duemidnight


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Payroll Processor timesheet approval

due 3 p.m.

BW Job Pay Flag Cutoff at 5 p.m.


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due 3 p.m.


BW HRMS voucher due

4 p.m.


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due 3 p.m.


BW HRMS voucher due

4 p.m.

MO Job Pay Flag Cutoff at 5 p.m.


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approvals duemidnight

Payroll Processor timesheet approvals

due 3 p.m.


BW HRMS vouchers due

4 p.m.


MO HRMS vouchers due

4 p.m.

Close BW payroll


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due 3 p.m.



4 p.m.



4 p.m.

Close BW payroll Close MO

payroll


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due 3 p.m.



4 p.m.



4 p.m.


payroll

BW pay daypay period

1st-14th


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due 3 p.m.



4 p.m.



4 p.m.


payroll


1st-14th

MO pay daypay period

1st-31st

Ending of MO pay period


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due 3 p.m.



4 p.m.



4 p.m.


payroll


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MO pay daypay period

Ending of MO pay period

Off cycle cutoff10:30 a.m.





It’s okay to feel overwhelmed!

It’s okay to feel overwhelmed!

• Payroll is a complex, deadline driven process• Successful payroll takes employees, supervisors,

and payroll processors working together• University Payroll and your Central Payroll Office

are here to help!

You’ve got this!

Payroll at IU

Documents

Transcript of Payroll at IU