As many healthcare organizations have begun to focus on how to manage labor expenses (with a goal to reduce) without reducing headcount, I have been asked to share some Healthcare Payroll PeopleSoft Best Practices recommendations and suggestion for PeopleSoft optimization.
The following “Healthcare PeopleSoft Payroll Best Practices Guide” is one of two that offers strategies to establish consistent pay processes, provide predictable results and ensure that payroll process improvements are on the right path to world-class business performance. More importantly, the ability to evaluate, develop and implement solutions based on best practices lowers risk. When Payroll best practices are applied holistically throughout the health system, all gain the ability to integrate key business drivers, which lead to sustainable performance improvements and cost savings.
I, or someone on my team, am available to discuss your specific needs and set you up for success.
Payroll Best Practices
|PeopleSoft Function||Questions and/or Considerations|
|Organizational Setup||Is the system set-up as vanilla and as simple as possible?Have defaults been set up to maximize the benefit and reduce the amount of repetitious or redundant data entered?
Does the healthcare entity have a process in place for using correction mode on tables versus adding an effective dated row? Is the process consistently followed?
A review and assessment of all the Payroll tables should be conducted. Inactivate any codes that are no longer needed and perform data cleanup to remove any demo data in the tables. Develop a business process procedure to ensure that tables are updated appropriately and timely to preserve data integrity within the system.
Review the following are being utilized:
|Installation Table||Are the appropriate products turned on?Which eApps are checked?
Are the NA Payroll options appropriately setup?
|Company||How are the healthcare entity’s companies defined?|
|Pay Groups||The payroll system relies on the information stored in the Company, Earnings, Special Accumulator, Shift, and Pay Group tables to determine how earnings are processed. How has the healthcare entity defined pay groups?Paycheck locations can be selected that work simultaneously with how the employees Pay Group had been set up on the Pay Group Table.|
|Tax Locations||Tax Locations determine the work states and localities that default to employee tax data. What methodology was used to determine the entries on the Tax Location Table?Are tax location codes configured to default from the entry of another value on the Job Data component or are tax location codes manually maintained on the Job Data component?
If default values have been configured, do they default from the Location Table or the Department Table? Are the default values serving the customer well, i.e., are the defaults appropriate a majority of the time?
|Employee Tax Data||Which department maintains employee tax data?Do the users in this department have a solid understanding of the functionality on the Employee Tax Data component?
Assess procedures for maintenance of employee tax data. Are practices defined governing when to use Correct History?
|Terminations||Evaluate practices for paying terminated employees. Do consistently applied practices exist, instructing payroll on severance payments, benefit deductions, and vacation payout?Is the Final Check feature in use? If not, are the procedures that govern payroll processing for terminated employees compatible with the Final Check feature?|
|Security||What procedures are used to provide security to the application? Is there a regular review to insure only current staff has access? How are new users added to the system?Do payroll users have access:
|Trouble-shooting Checklist||Does your healthcare entity have a troubleshooting procedure or checklist they follow?Determine the Impact of the Problem
Diagnose the Problem
Fix the Problem
Test the solution
|Updates and Fixes||Are fixes and patches reviewed and applied on a regular basis? Managing the application of updates and fixes procedures and strategy should include:
|Tax Updates||Tax updates are the primary vehicle for ensuring compliance with federal, state, and local governments with regard to tax calculation, withholding, remittance, and reporting. Maintaining currency with tax updates is vital for companies using NA Payroll. Is the application up to date with the latest tax updates?Assess procedures that surround the tax update process. Consider the following aspects:
|Query / Reporting||Do the right individuals have query access and are they adequately trained to know which tables to use and how to use effective dates and prompts?Are public queries maintained?
Is there a process in place to request a public query?
|Customizations||Are customizations justified and documented? Are training materials and help text available on-line, especially for customizations? This section provides you with a high-level analysis and overview of the healthcare entity’s customizations. Answer the following for each customization type in the subsections below:
Sierra-Cedar’s approach to PeopleSoft Payroll process improvement for a healthcare entity is to focus on business operational (that is the processes) “best practice” and what is required to take a health system from their current state to an optimized organization that fully utilizes their software investment. Sierra-Cedar does this through assessment and validation of the healthcare entity’s requirements as the first crucial step, e.g., focus on “strategic business objectives (reduce turn-over, provide key business matrix to business owners, optimize staffing, etc…).
Note: Information on standalone 9.2 features can be found in Peoplebooks, Oracle Cumulative Feature Overview tool, other blog posts and Oracle’s 9.2 site www.peoplesoft92.com.