Payroll SOP 001: Payroll Processing

Purpose 

This document provides standard procedures for processing payroll utilizing the Avail Enterprise Transit Management Software (ETMS) Payroll (PR) module. Payroll Specialists are responsible for the timely collection, preparation, and completion of payroll data, recording time worked, confirming approval for overtime or paid time off, and calculating the appropriate deductions for payroll processing. Payroll Specialists also spend time on post-processing activities such as reconciliation and reporting for management.

Operational Impact and Metrics

Operational Impact: Relying on the Avail ETMS PR module to automate payroll processing helps to derive operational efficiency across the payroll cycle. Processing payroll is crucial since paying employees late or filing taxes incorrectly may result in penalties and interest on back taxes. Payroll that is unreliable can also negatively impact employee morale and tarnish a business’s reputation when a company’s financial integrity is questioned.
Metrics: Payroll metrics measure the payroll process and how well it is doing. There are no standard payroll processing metrics of performance. Many businesses use different payroll metrics; however, the most critical errors are data input errors, which result from instances of incorrect or missing data. It is important to measure these as data input errors increase the amount of time it takes to process payroll consequently jeopardizing the company’s ability to deliver timely compensation.

Frequency

Payroll schedules are a matter of preference; however, every employer needs to follow a payroll schedule whether it is weekly, bi-weekly, semimonthly, or monthly so employees know exactly when they can expect to get paid.

Roles and Responsibilities

Payroll Specialists are primarily responsible for the execution of processing payroll. Typically, agencies have a multilevel payroll approval matrix in place to facilitate payroll processing and approval; therefore, this procedure is applicable to any staff member responsible for payroll processing activities performed within the Avail ETMS PR module. The line-of-business manager or designee is responsible for the oversight of this procedure.

Procedure

This procedure describes the high-level steps for Payroll Specialists to follow when processing payroll in Avail’s ETMS Payroll (PR) module.

Payroll (PR)

1. Collect timesheet data and payroll information
2. Enter data into the database to process payroll
   • If applicable, update employee data
3. Calculate wages, benefits, deductions, taxes commissions, etc.
   • If applicable, modify deductions and/or taxes
   • If required, print or view deduction reports
4. Prepare and process paychecks and cash deposits
   • If applicable, create ACH file
   • Print checks
5. Maintain accurate records of payroll documentation and transactions
6. Prepare and distribute income statements
   • Print earning statements (or email earning statements)
7. Respond to payroll-related inquiries and resolve concerns
8. Perform account balance and payroll reconciliations
   • Run the Payroll Update
9. Prepare financial reports for accounting and auditing purposes
   • Monthly
     • Pay employee and employer portion of taxes
   • Quarterly
     • If applicable, pay benefit providers/vendors owed
   • Year-end/Annual

Supporting Documents

1. Note Guide – Payroll & Talent Mgmt
2. FNW_Payroll
3. PR – ACH Processing