Blase Casillas, Sr. Director ADP Added Value Services May ... · Wage Payments - Risk Management - Sarbanes Oxley Unemployment Claims - UI Document - Receive claim & UI notices from

© Copyright 2015 ADP, LLC. Proprietary and Confidential Information. 1

Blase Casillas, Sr. Director

ADP Added Value Services

May 4, 2015

*

*Compliance Gap (n.)The disparity between your organization’s current HCM

capabilities and the complex, manual tasks and processes

required to comply with HCM-related laws.


http://youtu.be/2HQpS3KGCrM

http://youtu.be/2HQpS3KGCrM



Companies Need to Solve for HCM-Related Compliance

Believe HCM-related

compliance is critical to

their business

But their approach to

HCM-related compliance

is not strategic

Talent Management

Time & Attendance

Benefits Administration

Payroll

HR Administration

Employees

Federal & State Agencies

ACA Marketplaces

State Disbursement Units

Courts

EMPLOYEE &

LEGISLATIVE

REQUIREMENTS

Tax Credit Screening

Business Incentive Analysis

Applicant Screening

I-9 Completion/Verification

Alerts

Tax Filing

Tax Deposits - Funding

Year-End Filings/W2s

Amendments

Garnishment Administration

Notifications/Check Disbursements

Employment Verifications

Unemployment Claims

ACH ,Wires, Check Reconciliation

Stop-Pays/Voids, Manual Checks

Pay Disbursement

Pay Card Admin

ACA Eligibility Determination

Prepare Notice of Coverage

Send and Certify Notices

Respond to Exchange Notice

Appeal Management

Penalty Management

Effective Storage of Data

Communication to Staff

Employee Assistance

Manage Responses

Technology Management

File Management

Testing

Upgrades

Maintenance

Implementation

Integration/Federation to sites

Disaster Recovery

Technology Alone Can’t Fill the Gap


THE COMPLIANCE

GAP

Technology Not Fully Enabled

Manual • Non-Strategic • Complex

PEOPLE + PROCESSES

Talent Management

Time & Attendance


Payroll

HR Administration

Employees


ACA Marketplaces


Courts

EMPLOYEE &

LEGISLATIVE

REQUIREMENTS


TASKS

Dynamic Environment



PEOPLE + PROCESSES

Talent Management

Time & Attendance


Payroll

HR Administration

Employees


ACA Marketplaces


Courts

EMPLOYEE &

LEGISLATIVE

REQUIREMENTS


TASKS

Technology Alone Is Not Enough

PEOPLE + PROCESSES

COST | INEFFICIENCY | ORGANIZATIONAL RISK | EMPLOYEE FRUSTRATION

Talent Management

Time & Attendance


Payroll

HR Administration

Employees


ACA Marketplaces


Courts

EMPLOYEE &

LEGISLATIVE

REQUIREMENTS



TASKS


TASKS

257


35*Employment Tax - Tax Deposits - Set

up EFT payment with bank

Employment Tax - Tax Deposits -

Create EFT payment transmission as

required for federal and state


Initiate EFT payments

Employment Tax - Tax Deposits - Log

on to agency website for deposit

payment

Employment Tax - Tax Deposits - Print

& mail checks and coupons

Employment Tax - Agency Notice -

Disburse payment by check or EFT

Employment Tax - Amendment Filing -

Disburse payment by check or EFT

Wage Garnishments - Disbursement -

Coordinate payment with Accounts

Payable department


Process, print, stamp, & mail check

payments


Make payments via EFT as required by

state


Handle stop payments and check

reissues


Offer direct deposit capabilities for

private child support orders


Send reminders for un-cashed checks

Wage Payments - Production - Print

checks, vouchers to secured check

stock/ printers

Wage Payments - Production - Secured

Signatures

Wage Payments - Production - Burst,

Fold, Stuff, Seal

Wage Payments - Distribution - Sort for

Distribution

Wage Payments - Distribution - Stamp &

Mail Check Payments

Wage Payments - Distribution -

Packaging of shipments

Wage Payments - Distribution - Delivery

– Overnight

Wage Payments - Banking - Check File

Production for transmission

Wage Payments - Banking - Direct

Deposit to Employee Accounts

Wage Payments - Banking - Positive

Pay

Wage Payments - Banking - File

Transmission

Wage Payments - Banking - Check

Clearing

Wage Payments - Banking – Imaging

Wage Payments - Maintenance -

Reprints of lost/ damaged checks


Process Payroll Check Reversals

Wage Payments - Maintenance - Initiate

transaction funding for accounts


Equipment Purchase & Maintenance


Maintain Secure Check Stock,

Envelopes, MICR Ink/Toner

Wage Payments - Risk Management -

Secure Storage of Check Stock

Unemployment Claims - Benefit

Charges & Audits - Receive charge

statements and input in system

Unemployment Claims - Voluntary

Contributions - Employer makes timely

payment to state

ACA Compliance - Review - Remit

payment on behalf of each employee to

the IRS

35

*Typical tasks based on ADP internal analysis


Employment Tax - Research - Research

jurisdiction tax liability

Employment Tax - Research - Apply for

new EINs


EFT debit/credit


e-file registration


Update EFT setup for any federal or

state guideline changes

Employment Tax - Tax Deposits - Call

agencies for questions

Employment Tax - Tax Deposits - Track

frequency and compliance changes

Employment Tax - Reconciliation -

Research SUI rates

Employment Tax - Tax Filing - File form

941: Federal Income Tax, FICA,

Medicare

Employment Tax - Tax Filing - File

FUTA Form 940

Employment Tax - Tax Filing - File SIT &

SUI taxes

Employment Tax - Tax Filing - File local

taxes Including OPT/EMST/ LST

Employment Tax - Tax Filing - File

Multiple Worksite Reporting

Employment Tax - Tax Filing - Initiate e-

file tax filings

Employment Tax - Tax Filing - Print &

mail hardcopy tax filings

Employment Tax - Tax Filing - Create &

mail magnetic media filings

Employment Tax - Tax Filing - W2 filing

for employer

Employment Tax - Tax Filing - Track tax

type, # of notices, year or quarter

amount

Employment Tax - Year End - Create &

submit electronic W3


submit electronic state W2s


submit electronic local W2s

Employment Tax - Year End - Initiate E-

file annual tax filings

Employment Tax - Year End - Print &

mail hardcopy tax filings


mail magnetic media filings

Employment Tax - Year End - Print &

mail EE W2s

Employment Tax - Year End - Post W2s

online


Prepare letter & respond to agency

correct and/or pay


File Form 941C: Federal Income Tax,

FICA, Medicare

Employment Tax - Amendment Filing - File

amended FUTA Form 940


amended SIT & SUI forms


amended local forms


Issue W2C for employer copy

Wage Garnishments - Court Order

Evaluation - Contact agencies or courts

when orders are vague or illegible

Wage Garnishments - Notification -

Produce required answers &

interrogatories to the agencies, attorneys

and courts for various lien types.

Wage Garnishments - Notification - Utilize

state specific notification formats for

specific answers and interrogatories

Wage Garnishments - Phone Call

Handling - Respond to inquiries for writs of

garnishment, wage assignments &

bankruptcy withholding orders


Handling - Research, respond to and

manage judgment or default notices

Wage Payments - Risk Management -

Sarbanes Oxley

Unemployment Claims - UI Document -

Receive claim & UI notices from Address

of record

Unemployment Claims - Claim Research

& Protest – Formulate protest letter

Unemployment Claims - Claim

Research & Protest - Submit timely to

SUI agency and update system with

protest

Unemployment Claims - Determination

& Appeals - Receive & review

determination and documentation


& Appeals – File written appeal

Unemployment Claims - Hearing

Preparation & Representation – Receive

hearing notice


Preparation & Representation - Request

continuances / postponements


Preparation & Representation - Submit

documents to hearing officer


Preparation & Representation -

Represent client witness at hearing


Charges & Audits - Receive benefit

audits


Charges & Audits - Reply to state’s

request

Unemployment Claims - Tax Rate

Review - File protest of erroneous tax

rates

74

74*



148*Employment Tax - Research - Confirm

report totals match P/R system report

Employment Tax - Tax Deposits - Send

Payroll tax files to ADP


Manage frequency thresholds for each

agency


Manage zero Deposit/coupon rule


Create NACHA formatted EFT credit file


Confirm liabilities match P/R system

report


Review/balance variances

Employment Tax - Reconciliation - Post

GL tax ledger accounts


Relieve GL tax ledger accounts

Employment Tax - Year End -

Review/balance YTD variances

Employment Tax - Year End - Confirm

employee W2 options


Open/sort/prioritize mail


Image document


Research year/quarter amount


Research out-of-balance transactions


Decide on action correct and/or pay


Update & prepare corrections


Confirm/approve amendment

Employment Tax - Amendment Filing –

Image/store all documents

Wage Garnishments - Receipt -

Receive, Open and Sort garnishment

orders

Wage Garnishments - Receipt - Scan

withholding orders for record retention

Wage Garnishments - Receipt - File

withholding orders in folders


Retrieve orders from OCSE

electronically via

e-IWO


Evaluation - Read withholding orders

Wage Garnishments - Court Order I

Evaluation- Identify lien type


Evaluation - Identify if order is new

modified, or released


Evaluation - Identify if employee is

active or inactive


Evaluation - Identify federal and state

regulations


Evaluation - Legal department

interaction pertaining to withholding

order instructions, or negotiate

judgments or defaults


Evaluation - Data entry to pay systems


Notify employees that a withholding

order has been received


Notarize & Flash Signature notification

responses

Wage Garnishments - Calculation -

Prioritize lien by state rules


Calculate disposable income by state/

federal rules


Apply appropriate state rules if not

enough earnings


Make appropriate deductions


Attach required “Answer” forms with

payments for GA, OH & OK


Maintain list of payee destinations


Maintain historical payment data


Reconcile GL account and bank

statement


Handling - Respond to callers who did

not get their expected payment


Handling - Respond to payee change of

address requests


Handling - Respond to employee

inquiries


Handling - Respond to misplaced check

issues


Handling - Respond to request for child

support, student loan, & tax levy

responses

148


Why Your In-House Approach May Be Stressed


1,000’s of potential funding entities

Multiple funding platforms

Formats differ by entity

Timing is ever-changing

Penalties exist for non-compliance

No control over changes

Security concerns

Reconciling is difficult

Processing control

Nonstandard formats

Inconsistent processes

Varying frequencies

Constant regulatory change

Evolving technology requirements

New challenges like ACA

Decreased agency budgets/staff

Penalties

Negative employee impact

Manual paper processes

Lack of access to information

Redundancy

Disparate systems

Coordinating multiple data points

No backup or disaster plans

Multiple failure points

Limited resources

Reactive, not proactive

The Reality of Process Failure


Enable Microsoft Dynamics to Close the Gap


PEOPLE + PROCESSES

COST | INEFFICIENCY | ORGANIZATIONAL RISK | EMPLOYEE FRUSTRATION

Talent Management

Time & Attendance


Payroll

HR Administration

Employees


ACA Marketplaces


Courts

EMPLOYEE &

LEGISLATIVE

REQUIREMENTS


TASKS

Automated • Strategic • Simplified


Wage Payments - Banking - Check File

Production for transmission

Unemployment Claims - Voluntary

Contributions - Employer makes timely

payment to state

235

*Our representations reflect general definitions of

ADP’s responsibilities in delivering the services.

*



Preparation & Representation -

Represent client witness at hearing

ACA Compliance - Penalty Remittance -

Exchange sends preliminary notice to

employer

ACA Compliance - Response - Sends

notice to employer and employee within

90 days of appeal being accepted or

dismissed

ACA Compliance - Annual Filings - IRS

sends final amount of penalty to

employer after IRS penalty

reconciliation deadline

ACA Compliance - Review - Sends

communication on penalty resolution

remittance

ACA Compliance - Request - Sends

timely receipt of appeal request

ACA Compliance - Request - Sends

notification to employer and employee

of appeal being accepted or dismissed

within 90 days

ACA Compliance - Penalty Remittance

– Exchange sends preliminary notice to

employer

ACA Compliance - Communication -

Sends timely acknowledgement of

appeal receipt

ACA Compliance - Communication -

Sends notification to employer of

penalty being valid or sends notice of

dismissal if penalty is invalid/dismissed

within 90 days of appeal

1074

*




Employment Tax - Research - Confirm

report totals match P/R system report

Employment Tax - Tax Deposits - Send

Payroll tax files to ADP


Confirm liabilities match P/R system

report

Employment Tax - Reconciliation - Post

GL tax ledger accounts


Relieve GL tax ledger accounts

Employment Tax - Year End -

Review/balance YTD variances

Employment Tax - Year End - Confirm

employee W2 options


Open/sort/prioritize mail


Research out-of-balance transactions


Decide on action correct and/or pay


Update & prepare corrections


Confirm/approve amendment


Receive, Open and Sort garnishment

orders

Wage Garnishments - Receipt - Scan

withholding orders for record retention

Wage Garnishments - Receipt - File

withholding orders in folders


Prioritize lien by state rules


Calculate disposable income by state/

federal rules


Apply appropriate state rules if not

enough earnings


Make appropriate deductions

Unemployment Claims - Consultation

Training & Education - Managers

complete & file separation

documentation


Research & Protest - Obtain separation

info needed for response or protest


Research & Protest - Contact managers

to discuss potential protest


& Appeals - Contact manager to discuss

appeal


& Appeals - Determine witnesses


Preparation & Representation - Review

testimony & prepare witnesses

Unemployment Claims - Reports -

Create claims management reports

Unemployment Claims - Reports -

Distribute to client company locations

Employment Verification - Third Party

Requests - Provide authorization for

income request

Employment Verification - Third Party

Requests - Provide authorization for

employment request

Employment Verification - Employer

Process - Provide updated employment

and income data

Tax Credits - Production - Obtain

necessary back-up or proof (ID, etc.)

Tax Credits - Production - Gather Data

(applicant & hiring location information)

Tax Credits - Calculation - Apply credit

to appropriate tax return

ACA Compliance - New Hire - Hires

new associate

ACA Compliance - New Hire - Inputs

associate info into payroll, time &

benefits systems

ACA Compliance - New Hire -

Determine if associate is insurance

eligible and full-time

ACA Compliance - New Hire - Receives

Notice of Coverage via email and first

class mail within 14 days of hire date

ACA Compliance - Penalty Remittance -

Employee goes to 1 of 18 State or

Federal Exchanges

ACA Compliance - Response -

Determine if action is needed to mitigate

risk of monthly accrual of penalty

ACA Compliance - Annual Filings -

Reconciles annual Exchange reports

(1094/1095c), health insurer reports

(1094/ 1095c) and taxpayer tax returns

ACA Compliance - Response -

Employee goes to 1 of 18 State or

Federal Exchanges for coverage and

are granted a premium tax credit

41148

*



A marine transportation company was concerned about growing legislative

complexities and challenges maintaining a compliant electronic wage payment

process. Following a comprehensive analysis, it implemented ADP

SmartCompliance® to close gaps in legislative compliance capabilities. The

company also achieved substantial cost reduction and efficiency gains and

were able to redeploy staff previously engaged in manual compliance activities

into more strategic roles.

Client Story: Transportation


How ADP Helps Enable Your Business Strategy


Leverage tenured experts

across the legislative landscape

Benefit from 1,000+ associates

focused on HCM-related

compliance requirements

Utilize over 60 years

experience in compliance-

related infrastructure

Benefit from our annual

investment of over $600M in

process improvement

Extend functionality of

existing technology

Benefit by losing the burden,

not the visibility

Next Steps: Assess Your Compliance Gap


Discussion &

Discovery

Present

Business Case

Proposal

Executives

2 Hour

Practitioners

1 Hour per area*

Focus

ACA, payroll tax, pay disbursement,

garnishments, unemployment claims,

employment verification, hiring process

Time Investment

Business Case Document


Thank you.


ADP, the ADP logo, ADP SmartCompliance and ALINE Card by ADP are registered trademarks of ADP, LLC.

All other marks are the property of their respective owners. Copyright © 2015 ADP, LLC. All rights reserved.

Documents

Blase Casillas, Sr. Director ADP Added Value Services May ... · Wage Payments - Risk Management - Sarbanes Oxley Unemployment Claims - UI Document - Receive claim & UI notices from