x4-1 Project One- Payroll Onboarding Presentation – Speaker Notes

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4-1 Project One: Payroll Onboarding Presentation – Speaker Notes Nicole Sheppard Southern New Hampshire University ACC 315 – Accounting Information Systems Ciro Castaldi May 28, 2023

Project One: Payroll Onboarding Process - Speakers Notes Introduction (Slide One) Hello everyone, my name is Nicole Sheppard. Recently I have taken on the role of the business analyst for the CFO here at Posey’s Pet Emporium and have done some analysis of the current payroll onboarding process. After my analysis, I am here to talk about transferring our company’s payroll onboarding process to a new automated system. I believe that there will be many improvements, and the company will benefit greatly from transitioning to the new AIS payroll onboarding process. Overview (Slide Two) According to the text by Savage et al., employee onboarding is the process of establishing new employees and integrating them into the company’s culture and systems by helping them quickly adapt to their positions and the company (2022). Through this process, the company gathers the necessary tools and information that will be needed for the employee to be successful within the organization. It is advisable to begin the onboarding process before the new hire begins their first day. This ensures that the paperwork is completed, that management is up to date on the new hire’s information, and that there are no delays during the employee’s start in the company. This also allows the company and management to have the new employee’s work environment ready for them, and any mentors that may be necessary in place. By having an automated onboarding payroll system in place, there will be certain steps that are covered to guarantee that every area is covered, all of the required paperwork is completed, and that every department is included in the employee’s transition into their new role

with the company. Each person in the company has specific responsibilities in place to make sure that each area of the payroll onboarding process has been completed smoothly and without errors. Illustration (Slide Three) As you can see from the illustration on slide three, the payroll accounting cycle has steps that are spread across multiple job functions. From start to finish is shown within the flow chart. The start of this starts with the Accounting Department Manager deciding to extend an offer to a candidate. From that step, the Accounting Department Manager notifies the Director of Human Resources that there is a candidate that they have extended the offer to, for an open position within the organization. Next, the Director of Human Resources extends an offer letter to the selected candidate for the job. After the candidate responds to the offer letter within a certain timeframe. If the candidate responds to the offer letter with no, the payroll accounting cycle has ended there. If the candidate answers yes to the letter, the Human Resources Manager receives the offer from the candidate, and sends the new hire a new-hire package and a start date. Process (Slide Four) Ask yourself, “How does the payroll onboarding process function within the accounting information system”. The payroll onboarding process within the accounting information systems involves a series of steps to properly set up and process employee payroll. It starts with hiring a new employee and ends with the process of their first payroll. The key steps involved in the onboarding process are: • Employee information collection: This is the first step in the process and includes the collection of information like the employee's full name, address, social security number,

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and tax withholding information. This information is used to set up the employee’s payroll record. • Payroll setup: Once the mandatory information of the employee is collected, it then needs to be entered into the accounting information system. This involves setting up the employee’s payroll record with their pay rate, pay schedule, and tax withholding information. • Tax form completion: Next, the employee must complete any required tax forms such as W-2, W-4, or state tax withholding forms. This information is then used to calculate the employee’s tax withholdings. • Direct deposit setup: This is only required if the employee has requested to have their paycheck directly deposited to their bank account. Their accounting information must be collected and entered into the accounting information system. • Payroll processing: After all of the necessary employee information has been collected and entered into the AIS, payroll can then be processed. This involves calculating the employee’s gross pay, deductions, and net pay. The AIS will also generate any necessary payroll reports. • Payment distribution: And finally, the employee’s paycheck needs to be distributed. This can be done either through direct depositing their paycheck to their bank account, or a physical check. The AIS will record the payment distribution and update the employee’s payroll record accordingly. Overall, the payroll onboarding process is designed to ensure that employee payroll is properly set up and processed in compliance with all relevant tax and labor laws. The process

helps by ensuring that all employees are paid accurately, and in a timely manner, and that their information is recorded properly and maintained within the AIS. Inputs and Outputs (Slide Five) The payroll onboarding process within an AIS generally involves inputs and outputs. The inputs include information like the employee's demographics. This includes the employee’s full name, social security number, date of birth, address, and start date. This also includes the employee’s hourly pay rate or wages, and the number of hours they worked within the payroll period. Both help to determine the amount the employee will be paid. The employee’s pay frequency and attendance are also major inputs, as well as any authorized deduction information which includes federal, state, and local taxes, which determine the employee’s tax withholdings. Outputs in the AIS include the employee’s payroll amount, or paycheck, which is the employee’s net pay after all deductions have been taken out. Other outputs include a direct deposit to a bank account, which is an electronic payment of the employee’s net pay to their bank account, or mailing a check to the employee. Employee reports and the distribution of pay stubs and tax information are also outputs in the AIS. These reports show the employee's position and status, the hours worked, their gross pay, all the added deductions, and their net pay. Key Transaction Cycles (Slide Six) There are key transactions throughout both manual processing and automated processing of payroll. The manual process of payroll is the process of paying each employee by completing the payroll run without any aid given by software. When manually processing payroll, employees must first keep track of the time that they clock in and clock out through timecards. At the end of the pay period, the supervisor must then approve the timesheet and attendance

record of each employee. Once approved, the timesheet is then submitted to the payroll team for processing. The payroll team then must calculate each employee's deduction and benefits manually, and finally, the bookkeeper or payroll manager must ensure that each employee receives their pay. Automated payroll processing helps to improve employee satisfaction by reducing the amount of time on repetitive and manual processes while doing the payroll for the organization. Employees still clock in and out, but they do it on an automated system, which keeps exact records of the time they come in, go on break, and leave out. Supervisors still approve the time and attendance report in case someone did not clock out for their break or forgot to clock in when arriving or out when leaving. Once this is done, approval is automatically sent to payroll for processing where the computer does all the deductions and calculations, and the employee is paid. By using an AIS payroll teams are then free to focus their attention on more value-added tasks which helps in reducing workload and stress for the employees. Benefits (Slide Seven) There are many benefits that come with the transition into an automated information system. Such benefits include a reduction in payroll errors, accuracy and efficiency in processing new employees, having all onboarding steps completed in full, all paperwork is completed in a timely manner, and saving the organization time, money, and trees (paper)! Benefits Rationale (Slide Eight) Transitioning into an automated information system benefits each organization tremendously. By reducing the company’s payroll errors, it is possible to help the company’s overall employee happiness. Nobody likes when there are errors in their payroll because it can cause unnecessary

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frustration for the employees and the payroll team. When having to manually figure out every employee’s pay and deductions, it is easy to have some mistakes happen causing errors and unwanted frustration. The new automated system makes it possible to help correct errors faster and easier for the payroll team. Having an automated system means that a computer is keeping track of every employee's hours, pay rate, and deductions, and it automatically does all the calculations within minutes for each employee. This means payroll is done faster, more efficiently, and everyone can get paid without error. Having a new automated system ensures that each of the steps are completed in a timely manner and are accurate. This helps by saving time during the onboarding process of new employees, ensuring a smooth beginning for all including the employee, management, and HR department. Having to manually enter the information repetitively becomes redundant and can cause burnout for employees. This could in turn cause the company to lose some very valuable team members. Knowing that the information is always accurate and allowing the payroll team more time to do other things within the business, can really help with training new employees and the production within the company. Companies also now have the ability to save money, time, and trees with a new automated system. What company doesn’t want that? By becoming more environmental by saving trees the company helps their image. The time and money that they save can be put towards investments to grow the business and make it better. Drawbacks (Slide Nine) With all benefits, there always comes some drawbacks. With a new AIS, there are some drawbacks which include, training the employees to work the new system, less oversight of the

paperwork errors that are made, a reduction in human-to-human contact which causes less communication and relationship building between managers and employees and the possible threat of power outages, viruses, and fraud. Drawbacks Rationale (Slide Ten) When introducing a new system to current employees, there is the process of having to train them on how to use the new system or software. This costs the company time and money because the employees are being trained on the company’s time, and being paid while they are being trained. Hopefully, the money that is put into training will be saved with the switching to this new system and alter the losses the company will experience. In addition to the money and time that the company loses training their employees, there is also the large cost associated with installing the new system within all of the organization's stores. By losing human interaction between employees and employers there can be a tremendous strain on the turnover rate. This in the end will also cost the company more money. Having human-to-human interactions helps the employer feel the new hires’ attitudes and ethics towards the job and their work. Also, when employees do not feel that they can reach out about any issues or concerns that they have, they no longer feel comfortable working at the job, and many tend to quit. Communication and relationship building between an employer and employee is very important to a business. Establishing a repour and getting to know the company’s employees is essential to the success of both the business and the employees. Having this absence can make management seem unapproachable, which makes them seem less personable to the employees. Many people like to feel as if they have a family away from home when at work. Having more

personable relationships with the employees helps lower turnover rates, and boosts morale and work ethic. It is also necessary that employee data be verified and confirmed accurately. A drawback to the automated system is that the system does not realize if there is an error which can create problems for the employee or management. There also comes the added drawbacks of power outages, viruses within the system, and fraud. Having a system that relies solely on power and the internet, is prone to viruses, identity fraud, and not having backups if the system was not saved before the outage. This can cause major issues with our employees and our customers, which is why we should also look into spyware for our systems. Summary A-D (Slide Eleven) There are so many benefits to the automation of payroll onboarding, and every organization should invest in it. There are many tasks within payroll onboarding as well as many inputs and outputs. The processing of time and attendance, the benefited administration, and payroll and reporting ensure that all new hires’ demographics are received and entered in regard to their positions within the company. These processes are completed by the system accurately and in a timely manner. The information regarding their hours worked and the wages they are paid, and employment status updates are also contained within this system. Once the profile of the new hire is complete, management is able to efficiently and effectively train the employees, designate their workplace, and positive make certain that the employee is accepting of their work environment and culture in a positive manner.

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Summary E-H (Slide Twelve) Making the investment into an automated payroll onboarding system allows managers to process the new hires’ paperwork efficiently, approve time sheets in a timely manner, and monitor all employees' satisfaction within the workplace. Although it can improve efficiency, workflow, and business productivity, there are a few added drawbacks to the system. These included the breakdown of relationships between employees and management as well as the control over employee paperwork which comes with less accuracy in employee paperwork oversight. In addition, the company is losing valuable time and money when having to train all employees on this new system.

References (Slide Thirteen) Payroll Approval Process – Pros & Network Editions. (2020, December 4). Redcort. Retrieved from https://www.redcort.com/timeclock/support/kb/features/payroll- approval-process-pro-network Savage, A., Brannock, D., Foksinska, A. (2022). Wiley. Retrieved from https://wileyplus.vitalsource.com/reader/books/9781119744429/