luma request for proposal draft payroll requirements requirements... · 2019-10-01 ·...

LUMA REQUEST FOR PROPOSAL DRAFT PAYROLL REQUIREMENTS

This document contains draft requirements for the State of Idaho’s Enterprise Resource Planning (ERP) system Request for Proposal (RFP). It was compiled through the combined efforts of the Functional Teams, Information Services Group (ISG), and the Luma project team. When complete, the requirements will be provided to prospective vendors during the RFP process.

We request your assistance in reviewing the draft requirements and providing feedback to enable the project team to identify the most accurate and complete listing of requirements in order to enable the State of Idaho to identify and procure the best ERP software system. Thank you for your interest and participation.

The Payroll Requirements consists of 3 categories and 24 subcategories. For ease in reviewing:

• You may select any subcategory of interest from the table of contents• To go to page 1, hold down the shift and control button and push the up arrow• You may also find it easy to review by using the bookmarks

We invite you to attend one of the statewide workshops to provide feedback and ask questions or to send comments or questions to [email protected].

Thank you!

Luma Project Team

mailto:[email protected]

v1.0_07-17-18

Explanation of Requirements

The requirements are a list of proposed capabilities that the functional team members believe best represent the needs of Idaho agencies. Tremendous time and effort has been put into the draft requirements, but they may need to have items added, subtracted, or modified in order to best capture the needs of all Idaho State Agencies for the new Enterprise Resource Planning (ERP) system Request for Proposal (RFP).

Key principles for reviewing requirements:

1. The requirements are designed to be general in nature and explain what business activities needto be accomplished by the State of Idaho, but to stay away from the “how” of doing thosebusiness activities. The “how” of doing business activities will generally be defined by thesoftware system selected and the configuration capabilities.

2. Since ERP systems have matured over the years and have tremendous functionality, therequirements should avoid identifying general tasks for which all ERP systems have thatfunctionality. ISG, our consultants with experience in ERP implementation across dozens ofstates, will continue to guide us in this regard.

3. Requirements should capture unique business activities that are specific to the state of Idaho.4. Requirements should try to identify business activities that might help the evaluation committee

differentiate between software vendors (software vendors may approach the same processfrom a very different perspective).

5. Requirements should try to identify areas of functionality that may be difficult for softwarevendors to meet.

6. Requirements are not designed to be “mandatory” requirements. Vendors often respond torequirements with an explanation that their core software offering can meet the requirement orthey have a third party add-on that meets the requirement. The Evaluation Committee will usethe requirements as a qualitative measure when reviewing the software offerings.

Payroll Requirements Table of Contents Category

Leave Management

Subcategory

Inquiry and Reporting Leave Administration Leave Calculations and Payments Leave Requests/Authorizations Leave Sharing Leave Tracking Self-Service Workflow

Category Payroll

Subcategory

Annual Processing Audit and Controls Deductions and Withholdings Inquiry and Reporting Payroll Accounting Payroll Calculation Payroll Processing Self-Service Workflow

Category Time and Labor

Subcategory

Inquiry and Reporting Labor Distribution Resource Schedule Time Administration Time Approval Time Capture/Entry Workflow

Tracking # Category SubCategory Requirement: System provides the ability to: Comment

101Leave Management

Inquiry and Reporting

Calculate leave value, as of any point in time, to support GASB 34 reporting of leave liability and transfer the data to the GL module for posting the accrual transaction.

102Leave Management


Generate exception reports after time input that will capture leave events such as: comp time taken in the period, leave time taken in a period, leave payout, etc.

103Leave Management


Produce a report each pay period listing all employees' sick, annual, and other leave balances (Leave Balance Report).

104

Leave Management


Generate a report that details scheduled hours, time worked, leave usages, leave balances, etc., by hour or day within pay period for employees, unit level, division level, and state-wide.

105Leave Management


Generate a statistical leave analysis report by leave type, total hours used, average hours used, and the cost of leave used based on a specified time intervals.


201

Leave Management

Leave Administration

Have a variety of agency/state defined leave classifications such as annual leave, administrative leave, sick leave, including descriptions, business rules, and approval requirements.

202Leave Management


Support the use of unlimited number of leave types with or without balance accruals and associated business rules by state/agency.

203

Leave Management


Forward applicable leave balances to Public Employment Retirement System of Idaho (PERSI) upon retirement with the State for the conversion of service credits within the retirement system, and reduce the leave balance for the employee.

204Leave Management


Define which leave types are eligible for FMLA usage.


301

Leave Management

Leave Calculations and Payments

Define leave accrual calculation and usage rules based on combinations of variables, by leave type (with an override capability) based on flexible state/agency defined criteria.

302

Leave Management


Allow leave payments for leave earned but not taken (e.g., active military duty, other than an employee termination) based on flexible state defined criteria.

303

Leave Management


Capture employees working a designated State holiday to earn comp time based on state defined business rules.

304

Leave Management


Reinstate unused sick leave for appointments, reinstatement or re-employment of former employees (within 3 years of separation) who did not receive benefits at time of separation.

305

Leave Management


Capture employees working a designated State holiday to use the time off on an alternate work day(s).

306

Leave Management


Establish payments for specified employees that have reached the comp time maximum (thus reducing the comp time balance).

307

Leave Management


Project leave "run out" for any specified employees, including any additional accruals that will occur.

308

Leave Management


Trigger payment requests for specified employees who have accumulated an agency/state specified number of hours of comp time.


401

Leave Management

Leave Requests / Authorizations

Create online leave requests and route through appropriate approvals within agency/state defined leave request rules.

402

Leave Management


Present attendance pattern information to leave request reviewers based on business rules by agency.

403

Leave Management


Prohibit leave requests that are in excess of leave balance in the case of paid leave, or policy maximums in the case of unpaid leave. Leave thresholds are State/agency definable by type of leave (e.g., sick leave, FMLA maximums).

404Leave Management


Enforce State/agency defined leave usage rules at time entry.


501Leave Management

Leave Sharing Control, maintain and track the donation and use of leave based on state/agency-defined criteria.

502

Leave Management

Leave SharingAutomatically validate leave reported on timesheet against leave donation available once accrued balances are exhausted based on business rules that may vary by state/agency.

503

Leave Management

Leave SharingSupport authorized donation of vacation leave to be accepted as sick leave to another employee in the same or different agency based on state defined business rules.


601Leave Management

Leave Tracking Maintain history of all leave accounting actions.

602Leave Management

Leave Tracking Retain leave accounting balances for a specified time period from the date the employee separates from State employment.

603Leave Management

Leave Tracking Track FMLA (State and Federal) hours and eligibility by employee.

604Leave Management

Leave TrackingAlert employees entering time when usage of leave will take the balance below leave balance accrual threshold.

605Leave Management

Leave TrackingRestrict leave entered in timesheets to approved leave requests based on business rules that may vary by leave type, agency, or organization unit.

606

Leave Management

Leave Tracking

Track the accruals, limits, eligibility, usage, value, and payment of leave using leave types and leave reason codes (e.g. leave balances and calculations need to be controlled at a combination of leave type and leave reason). Reason types should be agency defined and only available for specified leave types.


701Leave Management

Self-Service Allow employees to view their leave balances and accrual rates, by leave type, including carry over balances.

702Leave Management

Self-Service Allow employees to view their leave usage by specified time period and leave type.

703Leave Management

Self-ServiceAllow employees to check on the status of all requests they submit.

704Leave Management

Self-ServiceAllow employees to request calculation of the value of comp time and annual leave balances based on current taxable wages and YTD withholdings.

705Leave Management

Self-ServiceSupport employee self-service for leave requests with immediate editing against business rules by agency, organization unit code, and work schedule.


801Leave Management

WorkflowCreate and maintain a multi-step approval/workflow for review and approval of all leave transactions.

802Leave Management

WorkflowCreate notifications to employees and agencies of leave that will be lost.


101

Payroll Annual Processing

Process W-2s, duplicate W-2s, W-2Cs and 1095s, including W-2s and 1095s for current and multiple past years, with the ability to print by agency/department by employee; and have ESS capability for employees to view, print, or reprint their W-2s and/or 1095s.

102Payroll

Annual Processing

Properly tax and issue final check and year end 1099 for deceased employees.

103Payroll

Annual Processing

Produce 1 W-2 and 1095 for employees that work for more than one agency.

104Payroll

Annual Processing

Correct 1095s and send updated files.


201

Payroll Audit and Controls

Produce a payroll proof list for each payroll with specified expected minimum and maximum hours and amounts by user-specified breakouts (agency, organizational unit, etc.).

202Payroll Audit and

ControlsProduce a payroll proof list for each payroll with validations at field level for online and batch input.

203Payroll

Audit and Controls

Certify the release of the payroll based on valid funds availability, with override capabilities.


301

Payroll Deductions and Withholdings

Calculate deductions and state contributions based on rules established in Benefits Administration.

302


Calculate tax amounts in compliance with any and all Federal, State and local taxes and any additional amounts as specified by employees.

303


Process other deductions including miscellaneous deductions, credit unions, state specified, charitable, and garnishment processing.

304Payroll

Deductions and Withholdings

Allow for state specified deduction priorities (consistent with legal requirements).

305Payroll


Convert leave balances and bonuses into deferred compensation contributions (with annual maximums applied) upon retirement based on State guidelines.

306Payroll


Establish catch-up period for deferred compensation contributions, based on employee age, years from retirement, and previous contributions eligibility based on plan regulations.

307

Payroll


Establish plan year contributions for pre-tax deductions for FSA / HRA /HSA for both medical and family care contributions; and recalculate remaining annual deductions based on contributions to date and the remaining scheduled pay periods in the plan year.

308Payroll


Support the deduction, processing, and tracking of pre and post tax contributions (including monitoring limits and providing information and payments to plan administrators).

309Payroll


Process garnishments / wage assignments to allow flexibility to process multiple garnishments per employee and assign state/Federal law defined priorities.

310Payroll


Establish garnishments that continue (carry forward) over multiple calendar years.


401Payroll Inquiry and

ReportingProduce and maintain a payroll register, deduction and earning report with drilldown capabilities.


ReportingProduce and maintain multiple standard payroll reports based on State/agency specified criteria.


ReportingProduce and maintain data files with month-to-date, quarter-to-date, and fiscal and/or calendar year-to-date totals.

404Payroll


Generate a leave report by leave pay type.

405Payroll


Maintain data files for month-to-date, quarter-to-date and year-to-date totals (Taxable Wages and Tax Withheld for State, Federal and Local fiscal and calendar year) by individual employee and source of funds.

406Payroll


Track and report State Active Duty (SAD) reserve cost by executive order, mission and unit number.


501

Payroll Payroll Accounting

Associate salaries, deductions, taxes, and pay types with a valid chart of account distribution; and calculate amounts split to multiple account distributions by percentage or time allocated in timekeeping, including distributions across agencies for employees working for multiple agencies.

502Payroll

Payroll Accounting

Calculate "overlays" (or burdened labor expense) for annual and sick leave, employer's portion of health insurance and payable leave time, based on a user provided percentage or flat amount.


601

Payroll Payroll Calculation

Calculate and verify overtime based on FLSA rules (multiple variables of the rules), State regulations and contracts, including holiday overtime, combining all hours in all positions and agencies with override capabilities.

602

Payroll Payroll Calculation

Calculate pay and per diem for National Guard State Active Duty personnel on a daily basis, at the equivalent of what they would earn while on Federal active duty.

603Payroll

Payroll Calculation

Process Idaho National Guard members while on State Active Duty (SAD) status, including state employees that are National Guard members called for state active duty.

604Payroll

Payroll Calculation

Track and calculate the federal active duty military rank rate and pay types (base pay, per diem, travel reimbursement, special duty pay, etc).

605Payroll

Payroll Calculation

Provide ability to relate tax types to pay types for SAD entitlements, for example: emergency pay (FIT, SIT only, no FICA), non-emergency base pay (FIT, SIT, FICA).

606Payroll Payroll

CalculationCalculate pay rates based on hourly, salaried, daily, or per diem, including weekly, bi-weekly, and monthly employees.

607Payroll

Payroll Calculation

Allow a position to be designated as primary, or by % of each position assignment, for determining benefit, leave, OT, and other calculation or allocations, when more than one position is used for a pay period.

608Payroll

Payroll Calculation

Allow an eligible employee to designate cash out of accumulated comp time when comp time maximums are reached based on an State/agency specified formula.

609Payroll

Payroll Calculation

Calculate comp payout for employees changing from Covered FLSA status to Exempt or Executive/Non-Covered FLSA status.

610Payroll

Payroll Calculation

Allow one employee to be paid in more than one position during a pay period.

611Payroll

Payroll Calculation

Set and change payroll rules on an ongoing basis for State defined periods that are implemented at the organization unit, job class, or individual employee appointment.

612Payroll

Payroll Calculation

Calculate and allocate paid leave in compliance with USDOL requirements.


701Payroll Payroll

ProcessingProcess weekly, biweekly, monthly, and supplemental (on demand) pay cycles.

702Payroll Payroll

ProcessingRun payroll for select groups of employees or processing events.

703Payroll Payroll

ProcessingProcess retroactive pay adjustments and update all payroll history and labor distributions.

704Payroll Payroll

ProcessingRecover overpayments, including one time or installments.

705Payroll Payroll

ProcessingRun a "proof" payroll process for agencies to review before final payroll is processed.

706Payroll

Payroll Processing

Allow the ability to process dual status employees, which implies multiple classes, positions, funding sources and pay rates in the same pay cycle.

707Payroll

Payroll Processing

Process arrearages for deductions and taxes withheld.

708

Payroll

Payroll Processing

Recover overpayments (for example wage overpayments and travel advance funds not used that need to be reimbursed back to the agency) within specified period of time and in compliance with any specific State/agency polices or law.

709Payroll

Payroll Processing

Separately process payroll for non-State employee groups (e.g. inmates, students, etc.)

710Payroll

Payroll Processing

Track eligible hours to determine eligibility for benefits either due to eligibility requirements, or due to hours designated in a time frame (such as ACA lookback period).

711Payroll

Payroll Processing

Define dates for look back period and stability period for Affordable Care Act.


801Payroll Self-Service Allow employees to see remittance advice online, enter and change direct deposit

information, and request duplicate W-2s and/or 1095s.

802Payroll Self-Service Allow employees to model “what-if” net pay scenarios, including determining proper W-

4 and other tax withholdings.

803Payroll

Self-Service Allow employees to view the details (calculated amounts, balances, etc.) of all deductions (garnishments, flexible spending accounts, etc.) and pay calculations.


804Payroll Workflow Have payroll workflow capabilities, including the ability for approval and routing of

selected payroll events.


101Time and Labor


Produce a report that details scheduled hours, time worked, leave usages, leave balances, etc., on an hourly or daily basis for each pay period for every employee.

102

Time and Labor


Produce a report that provides total scheduled hours, time worked, total leave usages (per type) and total overtime hours by cost center, division, interdepartmental group, or agency.

103

Time and Labor


Produce exception reports after time input that will capture a variety of incidents such as: no time for active employee, excessive overtime, unapproved timesheets, leave in excess of 40 hours (or scheduled time), etc.

104

Time and Labor


Produce a leave value report by employee and allotment code of leave balances at the end of the fiscal and/or calendar year with the following information: leave balance in days or hours, hourly wage, hours times hourly wage, FICA, total leave value plus FICA. (all paid leave types), etc.


201

Time and Labor

Labor Distribution Adjust the distribution of the full cost of staff time and associated benefits and other costs, hours, and FTEs to organization units, appropriations/funds, projects, or programs, based on agency-defined business rules.

202Time and Labor

Labor Distribution Allocate labor expense and other payroll liabilities to the chart of accounts elements and other data fields.

203

Time and Labor

Labor Distribution Apply labor distribution rules based on agency-maintained effective dates, retaining historical views for human capital cost, hours, and FTEs rules and calculations by program, grant, work order, revenue source, appropriations/funds, organization and other parameters.

204Time and Labor

Labor Distribution Establish default coding templates for labor distribution based on business defaults.

205Time and Labor

Labor Distribution Make mass corrections/updates to groups of labor distribution transactions selected by key fields.

206Time and Labor

Labor Distribution Specify distribution percentages when multiple account distributions are charged (or the use of actual hours by account distributions).

207

Time and Labor

Labor Distribution Create and maintain multi-tiered and multiple labor distribution rules and calculation algorithms for human capital costs, hours, and FTEs with effective begin and end dates associated with the agency as a whole or particular programs, revenue sources, appropriations/funds, or grants, (e.g. supporting the distribution of labor costs to appropriations/funds within programs or projects).

208

Time and Labor

Labor Distribution Account for and distribute agency-defined non-labor costs based on hours worked (i.e., inmate labor, volunteers, etc.) and process appropriate accounting transactions (i.e., job costing, general ledger, journal entries, etc.).


301Time and Labor

Resource Schedule Allow each agency to create work shifts and work schedules of variable duration.

302Time and Labor

Resource Schedule Assign work schedules to individuals, employee groups, and employees of an agency and/or state-specified organization unit.

303Time and Labor

Resource Schedule Change scheduled beginning time and scheduled ending time on a daily basis based on actual time periods worked.

304

Time and Labor

Resource Schedule Define work and seasonal schedules by agency, organization unit or job class. (Work schedule = typical work days, such as 8 hours/day Monday - Friday or 10 hours/day Monday - Thursday, etc.)

305Time and Labor

Resource Schedule Edit work schedules against business rules that may vary by agency, organization code, or job class.

306Time and Labor

Resource Schedule Assign staff to various work times and job functions on the established work schedule for the applicable agency, organization unit, program, or project.

307

Time and Labor

Resource Schedule Establish agency, organization unit, program based and other work schedules with effective beginning and end dates and requirements for coverage of particular job functions and staffing levels.

308

Time and Labor

Resource Schedule Generate holiday schedules, on an as needed, State/agency defined basis, and automatically update eligible employee time and attendance records where applicable.

309Time and Labor

Resource Schedule Generate unlimited default schedules and work hours for exception based employees based on agency defined profiles.


401Time and Labor

Time Administration

Allow employees and employee groups to be processed based on positive or exception time entry.

402Time and Labor

Time Administration

Allow for the processing of time from two different calendar or fiscal years at the same time.

403

Time and Labor

Time Administration

Make mass changes for a single employee or group of employees within an interval of time and make any necessary corresponding adjustments to employee records, leave or pay balances.


501

Time and Labor

Time Approval Allow agencies, organizations, units, programs, grants and supervisors to "lock" timesheets submitted for review and approval to prevent further update by employees; conversely, continue to allow updates and require re-approval.

502Time and Labor

Time Approval Configure a flexible time approval process by agency, organization unit, program, grant, position, and employee.

503Time and Labor

Time Approval Have tracking and supervisor notification and reporting of employees who are in early/late, out early/late based on defined thresholds.


601

Time and Labor

Time Capture / Entry

Allow employees to enter multiple time records for a 24-hour period (e.g., multiple in/out records), including varying periods of time worked, projects and account distributions worked within a given shift, definable by State/agency.

602

Time and Labor


Create flexible time capture including use of work schedules, default account distributions, entry of units as well as hours, or use of various methods of time entry (web entry, mobile device, etc.).

603

Time and Labor


Automatically determine holiday hours for eligible hourly employees based on hours worked in calendar month, master calendar, and/or hours available for work based on state/ agency defined business rules (e.g., prorate holiday hours based on hours worked).

604

Time and Labor


Automatically generate pay adjustment transactions when necessary based on retroactive data entered (e.g., hours entered result in overtime in a prior pay period).

605Time and Labor


Capture time for permanent, temporary, part-time, full-time, seasonal employees and other non-employee types (e.g., volunteers, contractors).

606Time and Labor


Apply default employee profile and schedule information during the timekeeping function.

607Time and Labor


Calculate a shift differential amount based on hours worked during certain shifts based on agency/state defined parameters.

608Time and Labor


Generate default hours for exception-based employees based on agency/state defined profiles (e.g., work schedules, employment status).

609

Time and Labor


Input changes and corrections to time and hours types and other time capture information both during and after payroll reporting periods (retroactive corrections) based on time-based business rules and editing.

610

Time and Labor


Allow employees to charge time to a Cost Center other than their home Agency or Cost Center (with interactive edit) based on options by agency, department, account distributions etc.

611

Time and Labor


Allow employees to charge time to a specific program or project and specify the type of work performed (e.g., activity), with the ability to see the description on the timesheet.

612Time and Labor


Allow entry of units as well as hours.

613Time and Labor


Allow for a comment area on the time sheet that includes date, time of entry, and user id.

614

Time and Labor


Calculate/verify overtime hour eligibility based on State defined rules to include combined rates of overtime for employees who have time tied to more than one appointment which may be in more than one Agency.

615Time and Labor


Collect statistical data from employees as part of the time capture process.

616Time and Labor


Default projects and activities available for a particular employee.

617Time and Labor


Define maximum number of hours by pay code by agency, job classification, employment status (full time, part time), workgroup, etc.

618

Time and Labor


Designate default ("home") accounting information to be used on time entries where no additional information is specified on the timesheet, including positions which are spread across multiple account distributions.

619

Time and Labor


Allow employees to protest time entry if employee disagrees with time entered for them, but have the time entered continue to process and retroactively correct the entry if the protest is successful.


701Time and Labor

Workflow Automatically generate and route exception reports from time processing to designated staff for review and action, providing email and other alerts.

702Time and Labor

Workflow Allow for supervisory delegates to be assigned for approval of time sheets.

703Time and Labor

Workflow Create online overtime requests and route through appropriate approvals within State/agency defined rules.

704Time and Labor

Workflow Route time sheets for additional approval when overtime pay and / or shift differential is used.

luma request for proposal draft payroll requirements requirements... · 2019-10-01 ·...

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