Semi-monthly payroll to hourly payroll
dupsyd
5 Posts
Hello,
I am BA that has just started working in an new organisation(Healthcare/Academic industry) I an currently engaged in a new payroll project that involves converting the semi-monthly payroll EE's to hourly and paying on a lag. My deliverable for this project is to come up with the requirements document.The ERP we are working with is Oracle. Has anyone ever worked on a project simiar to this? I need help and guidance with gathering the right requirements as well as identifying the gaps and risks involved with this type of conversion.
Your help is greatly appreciated !
Thanks,
Comments
Assuming the EE's statuses are not changing with the change in payroll frequency, the hourly times table will pretty much remain the same, again, assuming that it follows a "normal" standard of issue. I can offer that going backwards on pay tables is a lot easier than going forwards, so at least you have that in tow with the risk assessment. My questions are: Is it just the pay frequency that is changing? Is the software changing as well? What are the exemption criteria looking like? and What kind of "lag" are we talking about here (1 week, 2 weeks, etc)?
Cheers!
sreising
Hi sreising, thanks for your response. I have answered your questions below ...in bold.
My questions are:
Is it just the pay frequency that is changing? - Yes
Is the software changing as well? - No
What are the exemption criteria looking like? - I do not understand what you mean
and What kind of "lag" are we talking about here (1 week, 2 weeks, etc)? - 2 week-lag
Please advise on any area I need to particularly focus on, careful steps I need to take and partinent questions to ask the business users in this conversion project
Hi sreising, thanks for your response. I have answered your questions below ...in bold.
My questions are:
Is it just the pay frequency that is changing? - Yes
Is the software changing as well? - No
What are the exemption criteria looking like? - I do not understand what you mean
and What kind of "lag" are we talking about here (1 week, 2 weeks, etc)? - 2 week-lag
Please advise on any area I need to particularly focus on, careful steps I need to take and partinent questions to ask the business users in this conversion project
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The thing we are waiting to hear about is whether these employees are exempt or non-exempt. Their pay period being changed is of little to no HR value as long as the pay period is legal. However, wWhen you say "converting the semi-monthly payroll to hourly", we are confused because "semi-monthly" is a pay period and "hourly" generally refers to the manner of pay, which also typically reflects one's status as exempt or non exempt from the overtime and minimum wage provisions of the fair labor standards act.
Are these people you are converting exempt or non exempt?
To answer your question: the employees are currently non exempt and they will remain non exempt. What is being done is pulling all of the salaried employees that are being paid current on a semi monthly pay pariod to being paid hourly on a lag. I hope this answers your questions.
Thanks,
This is what I understand from your posts:
Is this all correct?
My apologies for not making my questions clear enough.
All employees are non-exempt and they will remain non-exempt: This is correct.
Some employees are salaried even though they are non-exempt. This is not correct,the non exempt employees are not salaried.
The question is what are the requirements for changing the payroll process for non-exempt salaried employees who are currently payed timely per pay period rather than in arrears. This is correct except for the fact that the non exempt EE's are not salaried.Thanks again.
My apologies for not making my questions clear enough.
All employees are non-exempt and they will remain non-exempt: This is correct.
Some employees are salaried even though they are non-exempt. This is not correct,the non exempt employees are not salaried.
The question is what are the requirements for changing the payroll process for non-exempt salaried employees who are currently payed timely per pay period rather than in arrears. This is correct except for the fact that the non exempt EE's are not salaried.Thanks again.
[/quote]
OK, so there is nothing here about anybody being salaried. Every employee affected is a non-salaried, non-exempt employee. So the only thing you're dealing with is going from to-the-day hourly pay to what I presume to be one pay period in arrears hourly pay. When you talk about requirements, are you concerned about process requirements or legal requirements or both? For the latter, we will need to know the states of all affected employees. I personally have no experinece with Oracle ERP but the process can be described in broad brush strokes and there are a few ways to go about this.