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HomeMy WebLinkAbout(0005) IR 20-10510 - Time Sheet Requirement ChangesINFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10510 To the Mayor and Members of the City Council November 17, 2020 Page 1 of 4 i o � SUBJECT: TIMESHEET REQUIREMENT CHANGES r�rA rea Background: PeopleSoft Payroll was implemented in 2010 to standardize payroll processes and to enforce consistent application of payroll policies across the organization. The transition to PeopleSoft was challenging and some employee paychecks were initially shorted. Some Fair Labor Standards Act non-exempt employees who are paid hourly wages experienced financial difficulties due to payroll underpayments. Payroll rules were created in PeopleSoft to automatically identify and correct differences between reported time and standard schedule time to avoid underpayment and any associated negative financial impact on employees. In every pay period, there are scenarios where the automatic corrections are applied to an employee's pay. A review of pay periods from October 2019 to July 2020 found 122 employees whose time was corrected by the automatic rule. In most cases the automatic corrections are accurate with routine timekeeping reviews identifying and correcting instances where the automatic corrections are inaccurate. Unfortunately, one result is that automatic corrections have resulted in creating the opposing problem of some employees being overpaid when the automatic rule is triggered. Discussion: Automatic corrections can result in overpayments in four different scenarios: • an employee doesn't fill any information in the timesheet, • an employee enters information but does not `submit' the timesheet, • an employee works an alternate schedule different from the standard schedule, and • an employee separates from employment at the city but the electronic Personnel Action Requests is not entered before payroll processing. As outlined above, three of the four instances causing overpayments are a direct result of employees not properly documenting their time before payroll processing is completed. Attachment 1 provides an illustration of these scenarios. In these scenarios a non -numerical entry is made to the time sheet (a space or a blank) and the standard schedule indicates hours should have been worked. To be favorable to the employee and avoid an underpayment, the standard schedule hours are substituted into the timesheet. In most cases, the correction is warranted with timekeepers correcting instances where the correction is incorrect. Payroll exception reports are available to assist in reviewing and correcting these scenarios. Overpayments occur in cases where the reviews being done to catch employee's mistakes are inadequate. In order to reduce the potential for overpayments, Payroll staff will modify the payroll system to remove the automatic corrections when there is a mismatch between employee reported time and standard schedule time. When the change is made, the PeopleSoft Payroll system will only pay time reported by the employee. Attachment 1 illustrates how time will be processed after the changes are made. Employees who did not accurately record their hours in the time sheet will potentially be underpaid. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10510 To the Mayor and Members of the City Council November 17, 2020 Page 2of4 i o � SUBJECT: TIMESHEET REQUIREMENT CHANGES r�rA rea The changes are scheduled to be implemented in the first pay period of 2021. To minimize the potential for underpayments, Payroll staff will initiate a communications campaign to make employees aware of the changes and to emphasize accurate time recording in the time sheet. Payroll staff is adding two additional off -cycle payroll runs to quickly issue payments for employees who may be underpaid due to their errors in under -reporting hours. Please contact Jay Chapa, Deputy City Manager, if you have any questions. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS To the Mayor and Members of the City Council �ypRTE7�� 4 SUBJECT: TIMESHEET REQUIREMENT CHANGES r rn rera No. 20-10510 November 17, 2020 Page 3 of 4 Scenario #1: Employee does not fill in their Timesheet Scenario #1: Employee does not fill in their Timesheet Calendar Mon Tue Wed Thu Fri Calendar Sat Sun Mon Tue Wed Thu Fri Schedule k 00 0.00 8.00 8.00 8.00 8.00 8.00 Schedule 0.00 0,00 8.00 8.00 8.00 8.00 8.00 Timesheet Payable Time Blank I Blank Blank Blank Blank Blank I nlnnk Without the Reg -Zero Rule in Time & Labor 6006_�00 8.00 8.00 8.00 8.00 8.00 k Scenario #2: Employee reviews but does not submit their Timesheet Calendar Sun Mon Tue Wed Thu Fri Schedule Timesheet Payable Time k-00 0.00 8.00 8.00 8.00 8.00 8.00 Stank 810nk B.DD &01) 8.60 8.00 S. Without the Reg -Zero Rule in Time & Labor 0.00 0.00 8.00 8.00 8.00 8.00 8.00 Timesheet Payable Time Blank Blank Blank Blank Blank Blank Blank With the Reg -Zero Rule in Time & Labor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Scenario #2: Employee reviews but does not submit their Timesheet Calendar WOO Mon Tue I Wed I Thu I Fri Schedule Timesheet Payable Time 0.00 0.00 8.00 8.00 8.00 8.00 8.00 8ionk 8la 8.00 8.00 8.00 8.00 8.00 With the Reg -Zero Rule in Time & Labor 6.00 A 0.00 0.00 0.00 0.00 0.00 ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS To the Mayor and Members of the City Council 4 SUBJECT: TIMESHEET REQUIREMENT CHANGES r rn rera Scenario #3: Employee works an alternate schedule Calendar Sat Sun Mon Tue Wed Thu 7FH Schedule Timesheet Payable Time 0.00 0.00 8.00 8.00 8.00 8.00 8.00 Blank Bkink 10.00 10.00 10.00 10.00 1 Skink Without the Reg -Zero Rule in Time & Labor 66� 0.00 10.00 10.00 10.00 10.00 8.00 Scenario #4: Employee Terminates (late ePAR) and Timekeeper doesn't catch it. Calendar sat Sui Mon Tue Wed Thu Fri Schedule Timesheet Payable Time 0.00 0.00 8.00 8.00 8.00 8.00 8.00 Blank I Blank Skink Blank Blank Blank Blank Without the Reg -Zero Rule in Time & Labor 0.00 0.06 8.00 8.00 8.00 8.00 8.00 No. 20-10510 November 17, 2020 Page 4 of 4 Scenario #1 Employee works an alternate schedule Calendar Sat Sun Man Flue Wed Thu Fr Schedule 0.00 0.00 8.00 8.00 8.00 8.00 8.00 Timesheet Blank Blank lOADF10010.00 10.00 Blank Payable Time With the Reg -Zero Rule in Time & Labor 0.00 1 0.00 10.00 10.00 10.00 10.00 0.00 Scenario #4: Employee Terminates (late ePAR) and Timekeeper doesn't catch it. Calendar kat Sun Mai Tue Wed Thu Fri Schedule Timesheet 0.00 0.0o 8100 s,00 8.00 8,00 Payable Tlm,� S.00 Blank Blank Blank Blank Blank Blank Blank With the Reg -Zero Rule in Time & Labor 0.00 0.00 0.00 0.00 0.00 0.00 0-001 ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS