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OnePurdue Initiative
Concepts ofConcurrent Employment
September 28, 2006
Presenters:
Amy Copas, Sue Davis and Sheryl Gick
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HR Concepts Overview
The presentations are strictly an overviewof new terminology and concepts.
The presentations do not replace formalclassroom training.
The presentations will not fully detail thenew business processes.
The presenters will focus strictly on thesession topic.
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Let’s Get Started
Today, our meeting has multiplepurposes.
1st, we’ll discuss the Concepts ofConcurrent Employment.
2nd, we’ll discuss a plan to minimize therisk associated with ConcurrentEmployment.
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What is ConcurrentEmployment?
From an employee perspective…• An employee is considered to be
concurrently employed whenever theemployee holds multiple assignmentsin the new system.
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Examples of ConcurrentEmployment in the NewSystem
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 non-paying positions (ex: 100% faculty position anda 0% courtesy position)
Employees holding a combination of benefits-eligible and non-benefits-eligible positions (ex:50% A/P and 50% limited term lecturer)
Employees holding a combination of regular andtemporary positions (ex: a 100% A/P positionand a temporary usher position)
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Examples of Non-ConcurrentEmployment in the NewSystem
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 employee’s master data• Processed with an attendance code in CATS.
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Examples of Non-ConcurrentEmployment in the NewSystem (cont.)
Employees with Overloads or OtherSpecial Payments• Processed on Infotype 14 (Create Recurring
Payments/Deductions) and Infotype 15(Additional Pays). Both infotypes allowindependent cost distribution.
Employees with AdministrativeAdjustments• Processed as a separate wage type on
Infotype 8 (Create Basic Pay).
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What is ConcurrentEmployment?
From a system perspective…• Concurrent employment processing is relatively
new to SAP.
• Until recently, SAP human resource modulesdid not support employees with multipleassignments.
• Higher education and health care customersrevealed the need for employees to holdmultiple assignments.
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Concurrent EmploymentFunctionality To accommodate organizations that allow
employees to hold multiple assignments, SAPimplemented the following:• In ERP 2004, SAP introduced new functionality enabling
employees with multiple assignments to be maintainedin the system.
• A new “Person ID” was established to uniquely identifythe person.
• Every assignment held by the employee is linked to theemployee’s Person ID.
• Each assignment held by the employee is given a uniquePersonnel Number (also known as PERNR).
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New Functionality
New infotype framework to enable datasharing between assignments (ex: name,address, SSN, etc.)
New infotype to capture the “main”personnel assignment• The main personnel assignment holds the
employee’s benefit information.• Employees logging into ESS to select benefit
plans during open enrollment will find theirbenefits data stored on their mainassignment.
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New Functionality (cont.)
A Concurrent Employment Benefitsworkbench was created.
For benefit processing purposes,personnel assignments belonging to thesame benefit area are grouped together.
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New Functionality (cont.)
A new Payroll schema was created forconcurrent employment processing.
The new schema “syncs” employee dataat specific payroll processing points.
Payroll data is synced for taxing andcheck-writing purposes.
Each employee receives only one checkand one W-2, even when holding multipleassignments.
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Challenges of ConcurrentEmployment
Implementing the SAP ConcurrentEmployment modules enables newfunctionality, such as one paycheck peremployee, one W-2 per employee, etc.
However, there are still many areas of thenew system that are not touched by theConcurrent Employment enhancements.
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Challenges of ConcurrentEmployment (cont.)
In the next few slides, we will quicklyreview key concepts from earliersessions.
We will then explore some of thechallenges that the organization will facerelated to concurrent employment.
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Quick Review of KeyConcepts from PreviousSessions
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 jobsand located in organizational units(departments).
Each position carries enterprise structurevalues. These values drive benefitdefaults, payroll area defaults and accrualcalculation rules.
Each position has a unique positionidentification number (can be compared totoday’s “budget item number”).
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Review of Assignments
Employees are assigned to positions aspart of the personnel actions.
An assignment is “an employee in aposition.”
Each assignment is given a uniquepersonnel number (also known asPERNR).
Enterprise structure values inherited fromthe position may be changed during theassignment process.
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Review of EnterpriseStructure Values for Purdue
Personnel Area: Defines campus location.
Personnel Subarea: Defines a position’seligibility for pay and benefits.
Employee Group: Creates groupings ofpositions that must be treated consistentlyfor pay, benefits, time and accruals.
Employee Subgroup: Defines a position’sexemption status, term of appointment andappropriate payroll area.
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Review of CapacityUtilization Level
Capacity Utilization Level (CUL) is storedon Infotype 0008, Create Basic Pay.
CUL is stored as part of an employee’sassignment information.
CUL is not stored on the position.
CUL is similar to today’s “FTE.”
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Review of Payroll Areas
Four valid payroll areas in the newsystem:• Biweekly
• Academic
• Fiscal
• Non-Pay
Payroll area determines payfrequency and processing.
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Review of Main Assignment
All employees will have a mainassignment.
The main assignment is where anemployee’s benefits are maintained
The main assignment drives updatesto personal, time, accruals andbenefits information via Employee Self-Service (ESS)
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Let’s look at examples…
We will review three examples ofconcurrent employment:• Professor with three assignments in three
organizational units (all pay eligible).
• Professor with two assignments in twoorganizational units (one pay eligible and onenon-pay eligible)
• Staff with two pay eligible assignments in twoorganizational 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 BasicMedical Sciences, fiscal-year appointment
• Assistant Professor @ .25 CUL in BiomedicalEngineering, fiscal-year appointment
He is paid a total of $100,000 for all ofhis assignments.
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Position Impact
The HR compensation analyst will need tocreate three positions:• Position 1 in Bindley Biosciences
• Position 2 in Basic Medical Sciences
• Position 3 in Biomedical Engineering
Each position will require careful creationof the personnel subarea to indicate thateach position is benefits eligible, eventhough two positions are less than .50CUL.
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Assignment Impacts
An identical payroll area must be set foreach assignment to ensure appropriatetaxation, paycheck generation and benefitcalculations.
In this case, the fiscal-year payroll areawould be defaulted for each assignment.No overrides would be required.
One assignment must be designated as themain assignment to ensure appropriatebenefit processing.
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Pay Impact
Each assignment will require a uniqueInfotype 0008, Basic Pay. The basic paywould 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 thateach assignment’s basic pay record beappropriately updated (three separateactions).
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Accrual Impacts
• Each assignment will accrue vacation, sickleave and other accrual balances separately.
• Any adjustment to accrual balances willrequire a separate entry for each assignment.
• If Dr. Brown updates the accrual adjustmentsvia Employee Self-Service, he may need toupdate each assignment record via aseparate ESS log in.
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Supervisory Relationships
Each of Dr. Brown’s positions will require aunique supervisory relationship to becreated and maintained.
Any financial or HR transactions initiatedthrough ESS or MSS may require that he loginto the appropriate assignment via theseparate ESS/MSS log-in to ensure accuratetransaction routing to the appropriateapprover.
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Dr. Brown Summary
Because he holds multiple payingassignments, Dr. Brown has an increasedrisk of experiencing errors with his pay,benefits or accruals.
Why? Any errors in enterprise structuredata or data defaulted from the enterprisestructure values could result in errors tohis pay, benefits and accrual calculations.
Since Dr. Brown’s job duties are verysimilar, it is desirable to eliminate hismultiple assignments.
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Example #2
Dr. Green has one paying assignment andone non-paying assignment:• Professor @ 100% CUL in Computer Science,
academic-year appointment• Courtesy Professor @ 0% CUL in Electrical and
Computer Engineering, academic-yearappointment
He is paid a total of $100,000 for all of hisassignments.
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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 isalready available in the ECE department,there is no need to create a secondposition.
Because the 100% CUL faculty position isalways benefits-eligible, the personnelsubarea creation is simplified.
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Position Impact (cont.)
A work schedule must be selected for his100% CUL faculty position. The courtesyposition does not require a work schedulesince it is non-benefits-eligible and non-pay.
One position must be designated as themain assignment. The benefits-eligible/pay-eligible position would be the mainassignment.
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Assignment Impacts
An identical payroll area must be set foreach assignment.
In this case, both the professor assignment(academic-year) and the courtesy professorassignment (non-pay) will be set to theacademic-year payroll area.
The HR processor will need to consciouslyoverride the defaulted non-pay payroll areafor the courtesy professor assignment toensure that both assignments store anidentical payroll area.
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Pay Impact
Each assignment will require a uniqueInfotype 0008, Basic Pay. The basic paywould look like this:• 1st assignment @ 100% CUL, $100,000
• 2nd assignment @ 0% CUL, $0.00
Any salary changes will require only onebasic pay record to be updated.
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Accrual Impacts
• Only Dr. Green’s benefits-eligibleassignment will accrue vacation, sick leaveand other accrual balances.
• Any adjustments to balances will be enteredagainst the benefits-eligible assignmentonly.
• He will only need one ESS/MSS log-in if hewishes to update his sick leave or otheraccruals.
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Supervisory Relationships
Only Dr. Green’s paying position willrequire a unique supervisory relationshipto be created and maintained.
Any financial or HR transactions initiatedthrough ESS or MSS will require only oneESS/MSS log-in to ensure accuratetransaction routing to the appropriateapprover.
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Dr. Green Summary
Although Dr. Green is concurrentlyemployed, he is less likely to experienceerrors with his pay, benefits and accruals.
Why? All pay, benefits and accruals aredriven from the paying position only.
The non-paying position doesn’t impactpay, benefits or accruals.
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Example #3
Sally Smith holds a regular Administrative/Professional position and a temporaryusher 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 positionand $8.00/hour for the Usher position.
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Position Impact
HRS will need to create one position, theA/P position @ 100% CUL
The second position is a grouped position.Assuming that the temporary usherposition is already available in the Hall ofMusic, there is no need to create a secondposition.
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Position Impact (cont.)
Because the 100% CUL A/P position isalways benefits-eligible, the personnelsubarea creation is simplified.
A unique work schedule must be selectedfor each position to represent the normalhours/days worked for each of Sally’spositions.
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Assignment Impact
An identical payroll area must be set foreach assignment.
In this case, both the A/P assignment andthe temporary usher assignment will be setto the fiscal-year payroll area.
The HR processor will need to consciouslyoverride the defaulted payroll area for theusher assignment to ensure that bothassignments store an identical payroll area.
One assignment must be designated as themain assignment.
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Pay Impact
Each assignment will require a uniqueInfotype 0008, Basic Pay. The basic paywould look like this:• 1st assignment @ 100% CUL, $35,000
• 2nd assignment @ 0% CUL, $8.00/hour
A salary change to either assignment willrequire updating of the appropriate basicpay record.
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Accrual Impacts
• Only Sally’s benefits-eligible assignment willaccrue sick leave and other accrual balances.
• Any adjustments to balances will be enteredagainst 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 leavebalance adjustments for the A/P assignment.
• The second to report time worked for the hourlyassignment (assuming the department will allowher to report hours through ESS).
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Supervisory Relationships
Only Sally’s A/P position will require aunique supervisory relationship to becreated and maintained.
The hourly temporary position will nothave a supervisory relationship created inSAP. Instead, a time administrator willaudit time and attendance data for theposition.
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Sally’s Summary
Because Sally holds multiple payingassignments in varying payroll areas, she hasan increased risk of experiencing errors dueto conflicting enterprise structure values.
Since Sally holds very different positions withdifferent rates of pay, it is likely that she willneed to remain concurrently employed.
HR processors will need to exercise greatcare when processing Sally’s records.
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Discussion of Payroll Area
Each employee may be paid in only onepayroll area.
For employees holding positions normallypaid in different payroll areas, the HRprocessors must make a decision as towhich payroll area an employee will beassigned.
Following is the logic for the decision.
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Payroll Area Decision
If an employee holds a non-exempt andbenefits-eligible position with any exemptposition (either benefits or non-benefitseligible), the employee will be set to thebiweekly payroll area.
The previously exempt position will beconsidered non-exempt with an hourlyrate. Time reporting will be required.(Ex: 50% clerical position and teaching acourse: Zero employees impacted atlatest conversion.)
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Payroll Area Decision
If an employee holds an exempt position(either benefits- or non-benefits-eligible) witha non-exempt and non-benefits-eligibleposition, the payroll area will be set to eitherthe fiscal- or academic-year payroll area asappropriate.
The earnings for both positions will be paidon the monthly payroll. For example:• Graduate student assignment with an under-
graduate student assignment (~ 600 staffimpacted)
• A/P or faculty assignment with a temporaryassignment (~ 100 staff impacted)
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Payroll Area Decision
If an employee holds multiple exemptpositions paid in both the academic-yearand fiscal-year payroll areas, theemployee will be set to the academic-yearpayroll area. (Ex: Graduate student withan academic-year appointment in Dept Aand a fiscal-year appointment in Dept B.)
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Payroll Area Decision
Human Resource Services will work closelywith OnePurdue’s Change ManagementTeam to communicate payroll area changesto impacted employees.
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Summary
The organization will face multiplechallenges related to concurrentemployment:• Extra steps will be added to processes.
• Post audits will be necessary to ensureaccuracy of data.
• Pay, benefits and accruals will be negativelyimpacted if all aspects of concurrentemployment are not appropriately addressed.
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Summary (cont.)
Employees will face multiple challengesrelated to concurrent employment:• The ability to update certain information
through ESS/MSS may be impacted due toincompatibility with concurrent employment.
• Multiple log-ins may be required for ESS/MSS.• Accrual balances will be stored separately for
each position, requiring separate updates tobalances.
• Pay, benefits and accruals will be negativelyimpacted if all aspects of concurrentemployment are not appropriately addressed.
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Minimizing Risks Associatedwith Concurrent Employment
The OnePurdue HR team acknowledgesthat the organization can not completelyeliminate concurrent employment.
The organization can strive to minimizerisks associated with concurrentemployment.
The HR team has devised strategies forminimizing concurrent employment atPurdue.
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Minimizing Risks Associatedwith 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 insecondary departments to reflect relationship.
• Distribute salary in PAIS or on IT 0027; createCost Distribution to multiple organizationalunits; or send funding to the departmentholding the position.
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Minimizing Risks Associatedwith Concurrent Employment(cont.)
The OnePurdue HR team, working incoordination with HRS, Payroll, Costing,the Provost Business Office and thedirector of business managers, iscurrently documenting processes formerging concurrent assignmentswhenever possible.
Some positions may be merged prior togo-live, while others may be merged aftergo-live.
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Minimizing Risks Associatedwith Concurrent Employment(cont.)
Initial review will focus on faculty, A/Pand clerical/service positions.
Review will not include graduate orundergraduate student positions at thistime.
Review will not include courtesy or othernon-pay positions at this time.
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Reporting Impacts
A new field, Interdepartmental ExpenseFTE, will be calculated in the BusinessWarehouse.
This new field will display “Pay FTE” andwill be calculated from payroll results.
The new budget system will alsoaccommodate FTE tracking forinterdepartmental staff.
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Example ofInterdepartmental FTE
Review Interdepartmental FTE Handout
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Other Personnel Costs: SalaryPlanning & Distribution Layout(Columns A - I)
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Other Personnel Costs: SalaryPlanning & Distribution Layout(Columns J - Q)
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Next Steps
Meetings will be scheduled with businessstaff to outline the process for mergingassignments.
Details to follow!
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To learn more…
Click to the following URL:http://www.purdue.edu/onepurdue/resources/onepurdue_hr_concepts_education_datalinks.shtml
There you will find:• Links to the Concepts presentations and
documentation about payroll area and mainassignment decisions.
• An evaluation form for the concepts session.We appreciate your feedback!
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Questions?