in house v adp hcm

Processing Layer

Print checks / vouchers

and reports

Fold, stuff and seal checks

/ vouchers

Sort, package and

distribute

Deliver (courier / FedEX)

Tax table updates

Deposit – federal, state, &

local agencies

Filings – federal, state, &

local agencies

Amendments

Check signing / company

logos

Create / send bank files

(direct deposit / pay card)

Positive Pay

Check fraud prevention

Check reconciliation

Stop payments

Direct deposit reversals

SAS70 Type II Audits

Insulation from technology

obsolescence

System / Information

Security

Government / state

regulation updates

Disaster recovery /

business continuity

Emergency backup

procedures

Equipment purchase

IT hosting /

maintenance

Check production

equipment

Stuffing / sealing

equipment

Postage equipment

Check / paper stock

Data storage / security

Envelope stock

MICR Printer ink

Production Distribution

Banking Risk Management Other Expenses

Tax Filing

Capture / Maintain

Employee data

Input / Import

Payroll data

Verify / Audit

Payroll input

Process gross to net

calculations

Create on-demand /

off cycle checks

Ad hoc reports

Prioritize garnishments

Calculate garnishments

Process garnishment

payments

New Hire Reporting

(state compliance)

Create GL interface file

Load GL data for import to

financial system

Payroll Processing

W2 processing-distribution

Payroll Processing Layer

© Copyright 2014 ADP, Inc. Proprietary and Confidential Information

ADP = White

Client = Dark Gray

Payroll Processing Layer

Print checks / vouchers

and reports

Fold, stuff and seal checks

/ vouchers

Sort, package and

distribute

Deliver (courier / FedEX)

Tax table updates

Deposit – federal, state, &

local agencies

Filings – federal, state, &

local agencies

Amendments

Check signing / company

logos

Create / send bank files

(direct deposit / pay card)

Positive Pay

Check fraud prevention

Check reconciliation

Stop payments

Direct deposit reversals

SAS70 Type II Audits

Insulation from technology

obsolescence

System / Information

Security

Government / state

regulation updates

Disaster recovery /

business continuity

Emergency backup

procedures

Equipment purchase

IT hosting /

maintenance

Check production

equipment

Stuffing / sealing

equipment

Postage equipment

Check / paper stock

Data storage / security

Envelope stock

MICR Printer ink

Production Distribution

Banking Risk Management Other Expenses

Tax Filing

Capture / Maintain

Employee data

Input / Import

Payroll data

Verify / Audit

Payroll input

Process gross to net

calculations

Create on-demand /

off cycle checks

Ad hoc reports

Prioritize garnishments

Calculate garnishments

Process garnishment

payments

New Hire Reporting

(state compliance)

Create GL interface file

Load GL data for import to

financial system

Payroll Processing

W2 processing-distribution

Payroll Processing Layer - with ADP HCM

© Copyright 2014 ADP, Inc. Proprietary and Confidential Information © Copyright 2014 ADP, Inc. Proprietary and Confidential Information

Benefits Processing Layer

Provide documents, policies, forms, etc., to

employees

Direct access for employee and

managers (multi-lingual)

Track domestic and international employees

Retain history on employee transactions

Disseminate news and information to employees by business unit where

applicable

Distribute company directory of employees office phone and work

address

Employee and wage verification

Unemployment Compensation Management

Notify approvers of employee events and

transactions

Create business process workflow

Mass change of employee records

Tutorials and Training

Analytics & Dashboards

Ad hoc reporting

Collaboration with industry experts and

peers

Server Maintenance

Database Management

SSAE 16 SOC-1 Reports

Disaster Recovery

System security (physical, logical firewalls, intrusion detection) and password

access control

Federation (single sign on from company intranet to

HR/Self Service

HCM Integration

Compliance reports for OSHA, EEO-1, VETS-

100, etc.

ADA Tracking

File/display compliance reports

Manage employee policy

acknowledgements

Monitor impact of Health Care Reform on Human

Capital Management process

Integrating acquisitions into HCM system

Export files and spinoffs and divestures

Map and translate payroll journal entries

for new financial system

Management of system updates to HCM

Development or modification of 3rd party file feeds and interfaces

Notification to various departments of new hire

New hire orientation and training

New hire reporting (State Compliance)

I-9 Verification and monitoring of document

expiration

Submit 8850 form to SESA for Tax Credits

(WOTC)

Research Economic Incentives

(State/Federal)

On Boarding Direct Access HCM Tools IT Services Compliance Special Projects

Integrated and real time org charts

HRIS - In House


System upgrades and feature enhancements

Mobile access to HCM Applications

Digital Record Management

Set-up client defined production reports

Update regulatory changes to HCM

application

Compliance Knowledgebase


Provide documents, policies, forms, etc., to

employees

Direct access for employee and

managers (multi-lingual)

Track domestic and international employees

Retain history on employee transactions

Disseminate news and information to employees by business unit where

applicable

Distribute company directory of employees office phone and work

address

Employee and wage verification

Unemployment Compensation Management

Notify approvers of employee events and

transactions

Create business process workflow

Mass change of employee records

Tutorials and Training

Analytics & Dashboards

Ad hoc reporting

Collaboration with industry experts and

peers

Server Maintenance

Database Management

SSAE 16 SOC-1 Reports

Disaster Recovery

System security (physical, logical firewalls, intrusion detection) and password

access control

Federation (single sign on from company intranet to

HR/Self Service

HCM Integration

Compliance reports for OSHA, EEO-1, VETS-

100, etc.

ADA Tracking

File/display compliance reports

Manage employee policy

acknowledgements

Monitor impact of Health Care Reform on Human

Capital Management process

Integrating acquisitions into HCM system

Export files and spinoffs and divestures

Map and translate payroll journal entries

for new financial system

Management of system updates to HCM

Development or modification of 3rd party file feeds and interfaces

Notification to various departments of new hire

New hire orientation and training

New hire reporting (State Compliance)

I-9 Verification and monitoring of document

expiration

Submit 8850 form to SESA for Tax Credits

(WOTC)

Research Economic Incentives

(State/Federal)

On Boarding Direct Access HCM Tools IT Services Compliance Special Projects

Integrated and real time org charts

HRIS – with ADP HCM


System upgrades and feature enhancements

Mobile access to HCM Applications

Digital Record Management

Set-up client defined production reports

Update regulatory changes to HCM

application

Compliance Knowledgebase


Benefits Billing for Employees on

Leave without Pay

Benefits Strategy

Plan Fiduciary Responsibility

Plan Design & Rate Negotiations

Project Manage Annual Enrollment

Train Administrative Users

Process Evidence of Insurability

Collect Beneficiary Data

Produce Hardcopy Election

Confirmations

Notify Employees When Elections

Change

Notify Employees of Opportunities to

Enroll

Produce Enrollment Materials & Guides

Produce Communications

Campaign

Maintain Historical Confirmations

Process Returned Mail (USPS)

Provide Decision Support Tools

Participant Call Center

Case Management

Non-English Speaking Support

Warm Transfer to other Vendors or

Carriers

Provide Contacts Information

Provide Plan Materials to Employees

Carrier Enrollments

Make Premium Payments to

Carriers

Process Emergency Enrollments

Carrier Data Reconciliation

Produce Carrier Invoices

Produce SOC 1 Reports

Produce Scheduled Reports

Maintain Data Warehouse for Ad

Hoc Reporting

Run Desired Ad Hoc Reports

Medicare Part D Reporting

Substantiate Dependent

Changes and Relationship

Verify Student / Disabled Status

Process QMCSO Dependents

Process Domestic Partner Affidavits

Drop Overage Dependents from

Coverage

Calculate & Maintain Eligibility

Schedule and run Payroll Deduction

File

Calculate Employee Cost of Coverage

Calculate Employer Cost of Coverage

Calculate ASO Fees

Calculate Chargebacks

Calculate Imputed Income for Life

Insurance

Calculate Imputed Income for

Domestic Partner Coverage

Disaster Recovery & Contingency

Planning

Maintain HIPAA Compliance

Maintain Section 125 Compliance

Run Scheduled Processes

Monitor Scheduled Processes for Completion

Maintain System Components

Update System Configuration as

Required

Deploy System Upgrades

Eligibility Determination

Employee Status Change Events

Family Status Change Events

New Hire and Annual Enrollment

Processing

Time Passing Events

Administrative Events

Identification of COBRA / HIPAA

Events

Maintain Election & Dependent/

Beneficiary Data

Collect PCP Data

Calculate Medicare Eligibility

Event / Election Processing

Administrative Tasks

Employee Communications

Employee Support &

Decision Making

Vendor Management

Reporting Dependent Processing

System Maintenance

& Compliance

Payroll Interface Processing

Corporate Messaging




Benefits Billing for Employees on

Leave without Pay

Benefits Strategy

Plan Fiduciary Responsibility

Plan Design & Rate Negotiations

Project Manage Annual Enrollment

Train Administrative Users

Process Evidence of Insurability

Collect Beneficiary Data

Produce Hardcopy Election

Confirmations

Notify Employees When Elections

Change

Notify Employees of Opportunities to

Enroll

Produce Enrollment Materials & Guides

Produce Communications

Campaign

Maintain Historical Confirmations

Process Returned Mail (USPS)

Provide Decision Support Tools

Participant Call Center

Case Management

Non-English Speaking Support

Warm Transfer to other Vendors or

Carriers

Provide Contacts Information

Provide Plan Materials to Employees

Carrier Enrollments

Make Premium Payments to

Carriers

Process Emergency Enrollments

Carrier Data Reconciliation

Produce Carrier Invoices

Produce SOC 1 Reports

Produce Scheduled Reports

Maintain Data Warehouse for Ad

Hoc Reporting

Run Desired Ad Hoc Reports

Medicare Part D Reporting

Substantiate Dependent

Changes and Relationship

Verify Student / Disabled Status

Process QMCSO Dependents

Process Domestic Partner Affidavits

Drop Overage Dependents from

Coverage

Calculate & Maintain Eligibility

Schedule and run Payroll Deduction

File

Calculate Employee Cost of Coverage

Calculate Employer Cost of Coverage

Calculate ASO Fees

Calculate Chargebacks

Calculate Imputed Income for Life

Insurance

Calculate Imputed Income for

Domestic Partner Coverage

Disaster Recovery & Contingency

Planning

Maintain HIPAA Compliance

Maintain Section 125 Compliance

Run Scheduled Processes

Monitor Scheduled Processes for Completion

Maintain System Components

Update System Configuration as

Required

Deploy System Upgrades

Eligibility Determination

Employee Status Change Events

Family Status Change Events

New Hire and Annual Enrollment

Processing

Time Passing Events

Administrative Events

Identification of COBRA / HIPAA

Events

Maintain Election & Dependent/

Beneficiary Data

Collect PCP Data

Calculate Medicare Eligibility

Event / Election Processing

Administrative Tasks

Employee Communications

Employee Support &

Decision Making

Vendor Management

Reporting Dependent Processing

System Maintenance

& Compliance

Payroll Interface Processing

Corporate Messaging

Benefits Processing Layer - with ADP HCM



Release Time Records to Payroll

Provide in/out punches on Pay Statements

Provide PTO balances on Pay Statements

Timecard Inquiries

PTO Inquiries

Employee Grievances

PTO Requests

Employee Self Service

Overtime Reporting

Labor Productivity

Regulatory Queries

Ad Hoc Reporting

SSAE 16 & SOC-1 Reports

Future Proofing Technology Investment

System/Information Security

Federal/State regulatory updates

Disaster recovery/business

continuity

Equipment/Hardware Purchase

IT Hosting/Maintenance

Software Updates

Data Storage Security

Capture/Maintain Employee Data

Record Time Entries

Attendance Tracking

Accruals Calculations

Time Exception Tracking

Verify/Audit Supervisors

Time Capture Payroll Processing Employee Support Reporting Risk Management Other Expenses

Employee Contact Center

Time & Labor Processing – In House


Emergency backup procedures

DOL Inquiries Verify Audit Payroll

Archive/Store Time Data

FLSA Overtime Calculations

Import/Export Time Data


Release Time Records to Payroll

Provide in/out punches on Pay Statements

Provide PTO balances on Pay Statements

Timecard Inquiries

PTO Inquiries

Employee Grievances

PTO Requests

Employee Self Service

Overtime Reporting

Labor Productivity

Regulatory Queries

Ad Hoc Reporting

SSAE 16 & SOC-1 Reports

Future Proofing Technology Investment

System/Information Security

Federal/State regulatory updates

Disaster recovery/business

continuity

Equipment/Hardware Purchase

IT Hosting/Maintenance

Software Updates

Data Storage Security

Capture/Maintain Employee Data

Record Time Entries

Attendance Tracking

Accruals Calculations

Time Exception Tracking

Verify/Audit Supervisors

Time Capture Payroll Processing Employee Support Reporting Risk Management Other Expenses

Employee Contact Center

Time & Labor Processing – with ADP HCM


Emergency backup procedures

DOL Inquiries Verify Audit Payroll

Archive/Store Time Data

FLSA Overtime Calculations

Import/Export Time Data


Order/Manage drug test

Integrate hire data to HR

Integration with I-9 and eVerify services

Employee Competency Assessments

Maintain employee goals and ensure

alignment with organizational initiatives

Align incentives with specific goal achievement

Track interim manager feedback to employees

Create development plans to close competency

performance gaps

Employee identification of future roles

Talent searches across the organization for job

fits

Talent assessments including potential,

readiness, etc.

Nine box grid of employee talent

assessments (ex: potential and performance)

Create and maintain course catalog

Provide list of recommended and required learning to

employee

Support enrollments by employee, manager or

admin

Maintain learning script

Maintain schedules, training locations and

rosters for instructor led training

Create and approve job requisition

Job posting to (multiple) job boards

Branded Career Center (Portal) for internal and

external candidates

Screening of applicants, including tax credit

eligibility

Management/mine pool of applications

Search candidate database for new

openings

Talent Acquisition Talent Acquisition

(continued) Performance Management

Succession Planning Learning

Management

Maintain employee talent profile

Talent Managemet – In House


Management and deliver eLearning

(SCORM and AICC compliant

Track student feedback on training

Schedule interviews and track feedback

Create offer letters

Order background checks (criminal,

driving, disability, etc.)

Compensation Planning

Calculate employee merit increase

budget(s)

Provide matrix guidelines based on performance and/or

succession ratings with hard and soft allowances

Provide budgets top down or bottom up

withhold back options for the top down

method

Provide tools for managers to model

employee increases per budget and

organizational guidelines

Manage employee bonus and incentive awards (by business

unit)

Pay and reward high potentials to retain key

talent

Learning for managers on effective talent

management practices

Performance reviews capturing employee, manager and other

rater feedback

Calibration of performance review

ratings

Integrate performance ratings to compensation

planning

Calibration of talent assessments

Successor search and nomination

Analysis of bench depth and bench spread

Org chart with view of successors and

readiness House discussion forums, materials and other data repositories

associated with a course

Approval and authorization of

increases

Integrate new rates and bonus payments to

HRPayroll


Order/Manage drug test

Integrate hire data to HR

Integration with I-9 and eVerify services

Employee Competency Assessments

Maintain employee goals and ensure

alignment with organizational initiatives

Align incentives with specific goal achievement

Track interim manager feedback to employees

Create development plans to close competency

performance gaps

Employee identification of future roles

Talent searches across the organization for job

fits

Talent assessments including potential,

readiness, etc.

Nine box grid of employee talent

assessments (ex: potential and performance)

Create and maintain course catalog

Provide list of recommended and required learning to

employee

Support enrollments by employee, manager or

admin

Maintain learning script

Maintain schedules, training locations and

rosters for instructor led training

Create and approve job requisition

Job posting to (multiple) job boards

Branded Career Center (Portal) for internal and

external candidates

Screening of applicants, including tax credit

eligibility

Management/mine pool of applications

Search candidate database for new

openings

Talent Acquisition Talent Acquisition

(continued) Performance Management

Succession Planning Learning

Management

Maintain employee talent profile

Talent Management – with ADP HCM


Management and deliver eLearning

(SCORM and AICC compliant

Track student feedback on training

Schedule interviews and track feedback

Create offer letters

Order background checks (criminal,

driving, disability, etc.)

Compensation Planning

Calculate employee merit increase

budget(s)

Provide matrix guidelines based on performance and/or

succession ratings with hard and soft allowances

Provide budgets top down or bottom up

withhold back options for the top down

method

Provide tools for managers to model

employee increases per budget and

organizational guidelines

Manage employee bonus and incentive awards (by business

unit)

Pay and reward high potentials to retain key

talent

Learning for managers on effective talent

management practices

Performance reviews capturing employee, manager and other

rater feedback

Calibration of performance review

ratings

Integrate performance ratings to compensation

planning

Calibration of talent assessments

Successor search and nomination

Analysis of bench depth and bench spread

Org chart with view of successors and

readiness House discussion forums, materials and other data repositories

associated with a course

Approval and authorization of

increases

Integrate new rates and bonus payments to

HRPayroll

Hires new associate

Determine if associate is insurance eligible

and full-time

Prepares Notice of Coverage to be sent via email and first

class mail

Request an appeal from the appropriate one of 18 Exchanges

within the 90 day timeline

Research and access all Exchange notices, payroll system, benefit system and 1095cs to determine if penalty is

valid

Validate that the Notice of Coverage

meets DOL

Send Notice of Coverage via email and first class mail

Certify that Notice of Coverage was mailed

Access payroll system for regulatory testing

Access benefits system for regulatory

testing

Conduct regulatory testing on MEC for all

Exchange notices received

Conduct regulatory testing on minimum

value for all Exchange notices received

Conduct regulatory testing on affordability

for all Exchange notices received

Respond to any of the 18 Exchanges

Ensure you are within the specific Exchange

guidelines

Determine which Exchange notices are

subject to penalty

Determine if there is a need to take action to

mitigate risk of monthly accrual

of penalty

Request an appeal from the appropriate 1 of 18 Exchanges

Receive penalty resolution

Store all resolutions in document tracking system for future

reference

Prepare annual filings 1094/1095c

Send employees and IRS copies of 1094/1095c

Research validity of penalty by reviewing preliminary Exchange

notices (payroll, benefits, time)

Reconcile all employee W2s,

Exchange notices and 1094c

Document all penalties to be paid for each

employee

Remit payment on behalf of each

employee to the IRS

Track and monitor penalty payment

receipts in tracking system

Update status in tracking system

Employee goes to 1 of 18 State or Federal

Exchanges for coverage and are

granted a premium tax credit

Receive penalty appeal resolution

Determine that Exchange notices are NOT subject to penalty

based on previous regulatory testing

Employee Penalty

Management Response

Annual Filings

Review Response Request Communication

Prepare for appeal by collecting all data from payroll system, benefit

system, Exchange notices and 1094cs to

support the penalty appeal

Send appeal of new penalty notice to IRS

Document resolution for every employee in

document tracking system

Receives Notice of Coverage within 14

days of hire date

Employee goes to 1 of 18 State or

Federal Exchanges

Sends notice to employer and

employee within 90 days of appeal being

accepted or dismissed

Reconcile annual Exchange reports

(1094/1095c), health insurer reports

(1094/1095c) and taxpayer tax returns

IRS sends final amount of penalty to employer after IRS

penalty reconciliation deadline

Exchange sends preliminary notice to

employer

Send timely receipt of appeal request

Sends communication on penalty resolution

remittance Send timely acknowledgement of appeal receipt

Exchange sends marketplace notice to

employer

EM

PL

OY

ER

E

MP

LO

YE

E

EX

CH

AN

GE

IR

S

Send notification to employer and

employee of appeal being accepted or

dismissed within 90 days

Send notification to employer of penalty being valid or sends notice of dismissal if

penalty is invalid/dismissed within 90 days of

appeal

Your ACA Responsibilities


Hires new associate

Determine if associate is insurance eligible

and full-time

Prepares Notice of Coverage to be sent via email and first

class mail

Request an appeal from the appropriate one of 18 Exchanges

within the 90 day timeline

Research and access all Exchange notices, payroll system, benefit system and 1095cs to determine if penalty is

valid

Validate that the Notice of Coverage

meets DOL

Send Notice of Coverage via email and first class mail

Certify that Notice of Coverage was mailed

Access payroll system for regulatory testing

Access benefits system for regulatory

testing

Conduct regulatory testing on MEC for all

Exchange notices received

Conduct regulatory testing on minimum

value for all Exchange notices received

Conduct regulatory testing on affordability

for all Exchange notices received

Respond to any of the 18 Exchanges

Ensure you are within the specific Exchange

guidelines

Determine which Exchange notices are

subject to penalty

If escalated, determine if there is a need to

take action to mitigate risk of monthly accrual

of penalty

Request an appeal from the appropriate 1 of 18 Exchanges

Receive penalty resolution

Store all resolutions in document tracking system for future

reference

Prepare annual filings 1094/1095c

Send employees and IRS copies of 1094/1095c

Research validity of penalty by reviewing preliminary Exchange

notices (payroll, benefits, time)

Reconcile all employee W2s,

Exchange notices and 1094c

Document all penalties to be paid for each

employee

Remit payment on behalf of each

employee to the IRS

Track and monitor penalty payment

receipts in tracking system

Update status in tracking system

Employer receives notice from State or Federal Exchanges. Send Marketplace

Notice to ADP

Receive penalty appeal resolution

Determine that Exchange notices are NOT subject to penalty

based on previous regulatory testing

Employee Penalty

Management Response

Annual Filings

Review Response Request Communication

Prepare for appeal by collecting all data from payroll system, benefit

system, Exchange notices and 1094cs to

support the penalty appeal

Send appeal of new penalty notice to IRS

Document resolution for every employee in

document tracking system

Receives Notice of Coverage within 14

days of hire date

Employee goes to 1 of 18 State or

Federal Exchanges

Sends notice to employer and

employee within 90 days of appeal being

accepted or dismissed

Reconcile annual Exchange reports

(1094/1095c), health insurer reports

(1094/1095c) and taxpayer tax returns

IRS sends final amount of penalty to employer after IRS

penalty reconciliation deadline

Exchange sends preliminary notice to

employer

Send timely receipt of appeal request

Sends communication on penalty resolution

remittance

Send timely acknowledgement of appeal receipt

Exchange sends marketplace notice to

employer

EM

PL

OY

ER

E

MP

LO

YE

E

EX

CH

AN

GE

IR

S

Send notification to employer and

employee of appeal being accepted or

dismissed within 90 days

Send notification to employer of penalty being valid or sends notice of dismissal if

penalty is invalid/dismissed within 90 days of

appeal

Your ACA Responsibilities with ADP


in house v adp hcm

Documents