OnePurdue Initiative

Concepts of Concurrent Employment

September 28, 2006 Presenters: Amy Copas, Sue Davis and Sheryl Gick

HR Concepts Overview
The presentations are strictly an overview of new terminology and concepts. The presentations do not replace formal classroom training. The presentations will not fully detail the new business processes. The presenters will focus strictly on the session topic.

Lets Get Started

Today, our meeting has multiple purposes. 1st, well discuss the Concepts of Concurrent Employment. 2nd, well discuss a plan to minimize the risk associated with Concurrent Employment.

What is Concurrent Employment? From an employee perspective

An employee is considered to be concurrently employed whenever the employee holds multiple assignments in the new system.

Examples of Concurrent Employment in the New System

Employees holding multiple paying positions (ex: 50% professor position in Dept A and a 50% professor position in Dept B) Employees holding multiple paying and nonpaying positions (ex: 100% faculty position and a 0% courtesy position) Employees holding a combination of benefitseligible and non-benefits-eligible positions (ex: 50% A/P and 50% limited term lecturer) Employees holding a combination of regular and temporary positions (ex: a 100% A/P position and a temporary usher position)

Examples of Non-Concurrent Employment in the New System

Employees with Call Back Pay
Processed with an attendance code in the Cross Application Time Sheet (CATS).

Employees with Unit Rates

Processed with an override wage type in CATS.

Employees with a Shift Differential

Part of an employees master data Processed with an attendance code in CATS.

Examples of Non-Concurrent Employment in the New System (cont.)

Employees with Overloads or Other Special Payments
Processed on Infotype 14 (Create Recurring Payments/Deductions) and Infotype 15 (Additional Pays). Both infotypes allow independent cost distribution.

Employees with Administrative Adjustments

Processed as a separate wage type on Infotype 8 (Create Basic Pay).
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What is Concurrent Employment? From a system perspective

Concurrent employment processing is relatively new to SAP. Until recently, SAP human resource modules did not support employees with multiple assignments. Higher education and health care customers revealed the need for employees to hold multiple assignments.

Concurrent Employment Functionality

To accommodate organizations that allow employees to hold multiple assignments, SAP implemented the following:
In ERP 2004, SAP introduced new functionality enabling employees with multiple assignments to be maintained in the system. A new Person ID was established to uniquely identify the person. Every assignment held by the employee is linked to the employees Person ID. Each assignment held by the employee is given a unique Personnel Number (also known as PERNR).

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New Functionality
New infotype framework to enable data sharing between assignments (ex: name, address, SSN, etc.) New infotype to capture the main personnel assignment
The main personnel assignment holds the employees benefit information. Employees logging into ESS to select benefit plans during open enrollment will find their benefits data stored on their main assignment.

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New Functionality

(cont.)

A Concurrent Employment Benefits workbench was created. For benefit processing purposes, personnel assignments belonging to the same benefit area are grouped together.

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New Functionality

(cont.)

A new Payroll schema was created for concurrent employment processing. The new schema syncs employee data at specific payroll processing points. Payroll data is synced for taxing and check-writing purposes. Each employee receives only one check and one W-2, even when holding multiple assignments.

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Challenges of Concurrent Employment

Implementing the SAP Concurrent Employment modules enables new functionality, such as one paycheck per employee, one W-2 per employee, etc. However, there are still many areas of the new system that are not touched by the Concurrent Employment enhancements.

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Challenges of Concurrent Employment (cont.)

In the next few slides, we will quickly review key concepts from earlier sessions. We will then explore some of the challenges that the organization will face related to concurrent employment.

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Quick Review of Key Concepts from Previous Sessions

Positions Assignments (Employee in Position) Enterprise Structure Values Capacity Utilization Level Payroll Areas Main Assignment

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Review of Positions
Positions are specific occurrences of jobs and located in organizational units (departments). Each position carries enterprise structure values. These values drive benefit defaults, payroll area defaults and accrual calculation rules. Each position has a unique position identification number (can be compared to todays budget item number).

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Review of Assignments
Employees are assigned to positions as part of the personnel actions. An assignment is an employee in a position. Each assignment is given a unique personnel number (also known as PERNR). Enterprise structure values inherited from the position may be changed during the assignment process.
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Review of Enterprise Structure Values for Purdue

Personnel Area: Defines campus location. Personnel Subarea: Defines a positions eligibility for pay and benefits. Employee Group: Creates groupings of positions that must be treated consistently for pay, benefits, time and accruals. Employee Subgroup: Defines a positions exemption status, term of appointment and appropriate payroll area.

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Review of Capacity Utilization Level

Capacity Utilization Level (CUL) is stored on Infotype 0008, Create Basic Pay. CUL is stored as part of an employees assignment information. CUL is not stored on the position. CUL is similar to todays FTE.

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Review of Payroll Areas Four valid payroll areas in the new system:
Biweekly Academic Fiscal Non-Pay

Payroll area determines pay frequency and processing.

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Review of Main Assignment

All employees will have a main assignment. The main assignment is where an employees benefits are maintained The main assignment drives updates to personal, time, accruals and benefits information via Employee SelfService (ESS)

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Lets look at examples

We will review three examples of concurrent employment:
Professor with three assignments in three organizational units (all pay eligible). Professor with two assignments in two organizational units (one pay eligible and one non-pay eligible) Staff with two pay eligible assignments in two organizational units in different payroll areas.

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Example #1
Dr. Brown has three paying assignments:
Assistant Professor @ .10 CUL in Bindley Bioscience Center, fiscal-year appointment Assistant Professor @ .65 CUL in Basic Medical Sciences, fiscal-year appointment Assistant Professor @ .25 CUL in Biomedical Engineering, fiscal-year appointment

He is paid a total of $100,000 for all of his assignments.

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Position Impact
The HR compensation analyst will need to create three positions:
Position 1 in Bindley Biosciences Position 2 in Basic Medical Sciences Position 3 in Biomedical Engineering

Each position will require careful creation of the personnel subarea to indicate that each position is benefits eligible, even though two positions are less than .50 CUL.

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Assignment Impacts
An identical payroll area must be set for each assignment to ensure appropriate taxation, paycheck generation and benefit calculations. In this case, the fiscal-year payroll area would be defaulted for each assignment. No overrides would be required. One assignment must be designated as the main assignment to ensure appropriate benefit processing.

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Pay Impact
Each assignment will require a unique Infotype 0008, Basic Pay. The basic pay would look like this:
1st assignment @ .10 CUL, $10,000 2nd assignment @ .65 CUL, $65,000 3rd assignment @ .25 CUL, $25,000

Future salary changes will require that each assignments basic pay record be appropriately updated (three separate actions).

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Accrual Impacts
Each assignment will accrue vacation, sick leave and other accrual balances separately. Any adjustment to accrual balances will require a separate entry for each assignment. If Dr. Brown updates the accrual adjustments via Employee Self-Service, he may need to update each assignment record via a separate ESS log in.

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Supervisory Relationships
Each of Dr. Browns positions will require a unique supervisory relationship to be created and maintained. Any financial or HR transactions initiated through ESS or MSS may require that he log into the appropriate assignment via the separate ESS/MSS log-in to ensure accurate transaction routing to the appropriate approver.

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Dr. Brown Summary

Because he holds multiple paying assignments, Dr. Brown has an increased risk of experiencing errors with his pay, benefits or accruals. Why? Any errors in enterprise structure data or data defaulted from the enterprise structure values could result in errors to his pay, benefits and accrual calculations. Since Dr. Browns job duties are very similar, it is desirable to eliminate his multiple assignments.
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Example #2
Dr. Green has one paying assignment and one non-paying assignment:
Professor @ 100% CUL in Computer Science, academic-year appointment Courtesy Professor @ 0% CUL in Electrical and Computer Engineering, academic-year appointment

He is paid a total of $100,000 for all of his assignments.

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Position Impact
HRS will need to create one position, the first professor position @ 100% CUL. The second position is a grouped position. Assuming that the courtesy position is already available in the ECE department, there is no need to create a second position. Because the 100% CUL faculty position is always benefits-eligible, the personnel subarea creation is simplified.
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Position Impact

(cont.)

A work schedule must be selected for his 100% CUL faculty position. The courtesy position does not require a work schedule since it is non-benefits-eligible and nonpay. One position must be designated as the main assignment. The benefits-eligible/ pay-eligible position would be the main assignment.

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Assignment Impacts
An identical payroll area must be set for each assignment. In this case, both the professor assignment (academic-year) and the courtesy professor assignment (non-pay) will be set to the academic-year payroll area. The HR processor will need to consciously override the defaulted non-pay payroll area for the courtesy professor assignment to ensure that both assignments store an identical payroll area.
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Pay Impact
Each assignment will require a unique Infotype 0008, Basic Pay. The basic pay would look like this:
1st assignment @ 100% CUL, $100,000 2nd assignment @ 0% CUL, $0.00

Any salary changes will require only one basic pay record to be updated.

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Accrual Impacts
Only Dr. Greens benefits-eligible assignment will accrue vacation, sick leave and other accrual balances. Any adjustments to balances will be entered against the benefits-eligible assignment only. He will only need one ESS/MSS log-in if he wishes to update his sick leave or other accruals.
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Supervisory Relationships
Only Dr. Greens paying position will require a unique supervisory relationship to be created and maintained. Any financial or HR transactions initiated through ESS or MSS will require only one ESS/MSS log-in to ensure accurate transaction routing to the appropriate approver.

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Dr. Green Summary

Although Dr. Green is concurrently employed, he is less likely to experience errors with his pay, benefits and accruals. Why? All pay, benefits and accruals are driven from the paying position only. The non-paying position doesnt impact pay, benefits or accruals.

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Example #3
Sally Smith holds a regular Administrative/ Professional position and a temporary usher position.
A/P @ 100% CUL in Liberal Arts, fiscal year exempt appointment Temporary usher @ 0% CUL in Hall of Music, biweekly non-exempt appointment

She is paid $35,000 for the A/P position and $8.00/hour for the Usher position.

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Position Impact
HRS will need to create one position, the A/P position @ 100% CUL The second position is a grouped position. Assuming that the temporary usher position is already available in the Hall of Music, there is no need to create a second position.

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Position Impact

(cont.)

Because the 100% CUL A/P position is always benefits-eligible, the personnel subarea creation is simplified. A unique work schedule must be selected for each position to represent the normal hours/days worked for each of Sallys positions.

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Assignment Impact
An identical payroll area must be set for each assignment. In this case, both the A/P assignment and the temporary usher assignment will be set to the fiscal-year payroll area. The HR processor will need to consciously override the defaulted payroll area for the usher assignment to ensure that both assignments store an identical payroll area. One assignment must be designated as the main assignment.
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Pay Impact
Each assignment will require a unique Infotype 0008, Basic Pay. The basic pay would look like this:
1st assignment @ 100% CUL, $35,000 2nd assignment @ 0% CUL, $8.00/hour

A salary change to either assignment will require updating of the appropriate basic pay record.

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Accrual Impacts
Only Sallys benefits-eligible assignment will accrue sick leave and other accrual balances. Any adjustments to balances will be entered against the benefits-eligible assignment only. Sally may need two ESS log-ins:
The first to initiate HR or financial transactions through SAP and to report vacation and sick leave balance adjustments for the A/P assignment. The second to report time worked for the hourly assignment (assuming the department will allow her to report hours through ESS).

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Supervisory Relationships
Only Sallys A/P position will require a unique supervisory relationship to be created and maintained. The hourly temporary position will not have a supervisory relationship created in SAP. Instead, a time administrator will audit time and attendance data for the position.

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Sallys Summary
Because Sally holds multiple paying assignments in varying payroll areas, she has an increased risk of experiencing errors due to conflicting enterprise structure values. Since Sally holds very different positions with different rates of pay, it is likely that she will need to remain concurrently employed. HR processors will need to exercise great care when processing Sallys records.

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Discussion of Payroll Area

Each employee may be paid in only one payroll area. For employees holding positions normally paid in different payroll areas, the HR processors must make a decision as to which payroll area an employee will be assigned. Following is the logic for the decision.

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Payroll Area Decision

If an employee holds a non-exempt and benefits-eligible position with any exempt position (either benefits or non-benefits eligible), the employee will be set to the biweekly payroll area. The previously exempt position will be considered non-exempt with an hourly rate. Time reporting will be required. (Ex: 50% clerical position and teaching a course: Zero employees impacted at latest conversion.)
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Payroll Area Decision

If an employee holds an exempt position (either benefits- or non-benefits-eligible) with a non-exempt and non-benefits-eligible position, the payroll area will be set to either the fiscal- or academic-year payroll area as appropriate. The earnings for both positions will be paid on the monthly payroll. For example:
Graduate student assignment with an undergraduate student assignment (~ 600 staff impacted) A/P or faculty assignment with a temporary assignment (~ 100 staff impacted)
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Payroll Area Decision

If an employee holds multiple exempt positions paid in both the academic-year and fiscal-year payroll areas, the employee will be set to the academic-year payroll area. (Ex: Graduate student with an academic-year appointment in Dept A and a fiscal-year appointment in Dept B.)

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Payroll Area Decision

Human Resource Services will work closely with OnePurdues Change Management Team to communicate payroll area changes to impacted employees.

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Summary
The organization will face multiple challenges related to concurrent employment:
Extra steps will be added to processes. Post audits will be necessary to ensure accuracy of data. Pay, benefits and accruals will be negatively impacted if all aspects of concurrent employment are not appropriately addressed.

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Summary

(cont.)

Employees will face multiple challenges related to concurrent employment:

The ability to update certain information through ESS/MSS may be impacted due to incompatibility with concurrent employment. Multiple log-ins may be required for ESS/MSS. Accrual balances will be stored separately for each position, requiring separate updates to balances. Pay, benefits and accruals will be negatively impacted if all aspects of concurrent employment are not appropriately addressed.

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Minimizing Risks Associated with Concurrent Employment

The OnePurdue HR team acknowledges that the organization can not completely eliminate concurrent employment. The organization can strive to minimize risks associated with concurrent employment. The HR team has devised strategies for minimizing concurrent employment at Purdue.
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Minimizing Risks Associated with Concurrent Employment

(cont.)

Strategies to minimize risk include:

Where feasible, establish all CUL and pay in one position/one department. If appropriate, establish a no-pay position in secondary departments to reflect relationship. Distribute salary in PAIS or on IT 0027; create Cost Distribution to multiple organizational units; or send funding to the department holding the position.

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Minimizing Risks Associated with Concurrent Employment

(cont.)

The OnePurdue HR team, working in coordination with HRS, Payroll, Costing, the Provost Business Office and the director of business managers, is currently documenting processes for merging concurrent assignments whenever possible. Some positions may be merged prior to go-live, while others may be merged after go-live.

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Minimizing Risks Associated with Concurrent Employment

(cont.)

Initial review will focus on faculty, A/P and clerical/service positions. Review will not include graduate or undergraduate student positions at this time. Review will not include courtesy or other non-pay positions at this time.

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Reporting Impacts
A new field, Interdepartmental Expense FTE, will be calculated in the Business Warehouse. This new field will display Pay FTE and will be calculated from payroll results. The new budget system will also accommodate FTE tracking for interdepartmental staff.

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Example of Interdepartmental FTE

Review Interdepartmental FTE Handout

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Other Personnel Costs: Salary Planning & Distribution Layout

(Columns A - I)

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Other Personnel Costs: Salary Planning & Distribution Layout

(Columns J - Q)

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Next Steps
Meetings will be scheduled with business staff to outline the process for merging assignments. Details to follow!

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To learn more
Click to the following URL:
http://www.purdue.edu/onepurdue/resources/on epurdue_hr_concepts_education_datalinks.shtml

There you will find:

Links to the Concepts presentations and documentation about payroll area and main assignment decisions. An evaluation form for the concepts session. We appreciate your feedback!

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Questions?

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