How to Keep Your HCM Data in Tip Top Shape

Kelly Sprekelmeyer, Customer Service Manager, PlanSource HCM

Agenda

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What is HCM Data?

Potential Impact of Bad Data

Common Pitfalls of HCM Data

Your Data is Clean! Now What?

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The term HCM Data includes all data related to the

employee life-cycle, from recruiting to off-boarding

and every milestone in between.

Your HCM data must be constantly reviewed for

integrity and accuracy.

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The Potential Impact

of Bad Data

The Potential Impact of Bad DataEmployee Hired

SSN not verified

Employee PromotedJob Changes Incomplete

Supervisor Updates

RequiredUpdate Cost

Centers

Org ChartsGeneral Ledger &

AccountingAnalytics &

ReportingApprovals Access to Sensitive

Data

Access to

Restricted

Programs and Files

The Potential Impact of Bad Data

The Potential Impact of Bad Data

Employee PromotedJob Changes Incomplete

Supervisor Updates

RequiredUpdate Cost

Centers

Org ChartsGeneral Ledger &

AccountingAnalytics &

ReportingApprovals Access to Sensitive

Data

Access to

Restricted

Programs and Files

The Impact of HCM Data on Your Business

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Inaccurate or incomplete HCM data can negatively impact all aspects of your business:

Clean and accurate HCM data can increase payroll efficiency, decrease compliance issues, impact

employee retention, ensure proper security and influence company strategy.

Payroll Accuracy Compliance People Analytics Security Company Strategy

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Common Pitfalls of HCM Data

• Company Mergers and Acquisitions

• Corporate Structure Changes

• Employee Job Classifications

• Benefit Plan Compliance

• Sick Leave Compliance

• Tax Registrations and Configuration

• E-Verify and I-9 Compliance

Common Pitfalls of HCM Data

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Mergers and Acquisitions

• Companies often fail to involve HR and Payroll experts in the early phases of a merger or acquisition plan.

• Equifax Workforce Services

• American Payroll Association

• Society for Human Resource Management

• Employment/Tax Attorneys

• HCM/Payroll Vendor

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Mergers and Acquisitions

• Carry over of FICA, FUTA and SUTA wages

= savings up to $10,000+ per employee.

• Failure to reach out to state agencies can

result in fines for “SUTA” dumping, even if

unintentional.

• Moving wages to the correct FEIN due to

the wrong start date can require hundreds

of hours processing corrections.

PlanSource HCM customers have access to our

partner Equifax to provide consultation and

recommendations based upon your company’s

unique needs.

They can even handle paperwork with employment

and tax agencies. All of these services are offered at

a considerable savings compared to attorneys’ fees.

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Corporate Structure Changes

Company name changes

Relocation of corporate headquarters

Opening new or remote locations

Change in named officers

Change in company or corporation type

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Corporate Structure Changes

Submit changes to local, state and Federal agencies

Update HCM profiles with new company information

Create new work location profiles & taxes for affected employees

Notify payroll provider to obtain new Powers of Attorney

PlanSource HCM offer access to HR Answers Now – a comprehensive HR and Payroll knowledge database powered by Wolters Kluwer

• Under FLSA, employees must meet a job duties test to be classified as exempt from overtime.

• EEOC requires employees be properly classified for annual compliance reporting

• Workers Compensation insurance requires that employees are coded to the correct classification for

insurance purposes based upon their job duties

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PlanSource HCM houses these classifications at the Job Code level to help you remain compliant, and offers robust reporting features to meet your annual requirements.

Best Practice: Run reports within your HCM system to review and correct classification data at least annually, or after any major company restructure.

Employee Job Classifications

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Benefit Plans and Compliance

• Are your life events compliant?

• Are you reviewing and approving Evidence of Insurability submissions by your employees regularly?

• Are you monitoring employee hours, offers and coverage costs to ensure compliance with the Affordable Care Act?

• Do you know your eligibility drivers for your plans?

• Are your export files complete and being sent timely to carriers with enrollment and change data?

• Are your benefit deductions feeding into payroll accurately?

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PlanSource HCM offers a comprehensive HCM,

Payroll and Benefits solution offering:

• Single system of record for employee data

• Real-time API data feed of demographic data

• Real-time API data feed of benefit deduction

data

• ACA payroll data integration

• Industry-leading reporting features

• Dependent audits available

Leveraging a comprehensive HCM, Payroll and Ben Admin tool with a single data entry point helps keep your data

clean

Benefit Plans and Compliance

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Sick Leave Compliance

*Note this list of locations may not be inclusive and is meant to be demonstrative of the many variations each state and locality may have regarding sick leave. Please check with your local or state agencies for more guidance.

• If you have employees working in one of these

locations*, there are special rules regarding paid and/or

unpaid sick leave for your employees.

• Be sure to choose an HCM provider who can support the

various regulations

• PlanSource HCM provides all of the tools required to

keep your plans compliant

Do you operate in any states or cities with Sick Leave Laws?

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Sick Leave Compliance

Don’t underestimate the basic tools at

your disposal

• Research and bookmark organizations

who follow employment and labor law in

your state(s)

• Set up Google Alerts for articles pertaining

to paid sick leave laws

• Sign up for and read newsletters or alerts

from trusted payroll providers

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Tax Registrations and Configuration

Ask your current HCM vendor for more information on tools that may be at your disposal.

• Review and approve ALL employee address

changes and their potential tax impact

• Work locations should be defined as the

physical addresses where your employees

perform work.

• Register with every payroll tax agency where

your employees perform work.

• Ensure new hires are being reported to the

appropriate states

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Tax Registrations and Configuration

• PlanSource HCM offers a powerful geo-location

tool

– Verify addresses as they are entered

– Suggest taxes based upon verified address

– Reports show recommendations vs.

selection

• PlanSource HCM handles all New Hire

Reporting requirements for all states of operation

• Offers workflows to require Admin approval on

ANY employee changes made in the system

before taking effect.

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E-Verify and I-9 Compliance

• I-9 audits are performed by Immigration and

Customs Enforcement (ICE)

• The average penalty assessed to an employer

following an audit = $25k-$28k

• No space can be blank. It must be filled out with

N/A if it does not apply.

• Errors require a new form. Nothing can be

crossed out or corrected.

• The employer’s designee who signs the form must

see original forms of ID.

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E-Verify and I-9 Compliance

• E-Verify is a FREE internet-based system provided through the US Dept. of Labor that verifies identity and employment eligibility.

• Only 10% of all employers leverage this free tool today

• Only employers who use E-Verify can require an SSN on the I-9 Form

• Several sources indicate E-verify will be mandatory for ALL employers in the next 2-3 years

• PlanSource HCM customers using our integrated Applicant Tracking & OnBoarding have access to E-Verify as part of the online hiring process.

Your Data is Clean

Now What?

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Audits and Reporting Made Easy

Compliance Reporting Automated

• New Hire Reporting

• EEOC-1 Reporting

• VETS Reporting

• Worksite Reporting

• ACA Review and Filing

Required and Potential Audits are a Snap!

• 401(k) Discrimination Testing

• 401(k) Plan Audits

• I-9 Audits

• Workers’ Compensation Audits

• …and more!!

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Get Bells and Whistles for Your HCM Data

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• Talent Analytics: retention

and high performers

• Interactive org charts

• Total compensation

statements

• Real-time ACA

measurement & offer

automation

Data Quality Cycle

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Closing Video

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Q & A

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