Slide 1 FastFacts Feature Presentation August 16, 2011 We are using audio during this session, so please dial in to our conference line… Phone number:

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FastFactsFeature Presentation

August 16, 2011

We are using audio during this session, so please dial in to our conference line…

Phone number: 888-651-5908 Participant code: 182500

© 2011 The Johns Hopkins University. All rights reserved.

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Today’s Topic

We’ll be taking a look at…

OVERPAYMENTS

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Today’s PresenterCynthia Addison Manager, HR Shared Services

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Session Segments

PresentationCynthia will address the impacts of overpayments.During Cynthia’s presentation, your phone will be muted.

Q&AAfter the presentation, we’ll hold a Q&A session. We’ll open up the phone lines, and you’ll be able to ask questions. Cynthia will answer as many of your questions as time allows.

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Contact Us

If you would like to submit a question during the presentation or if you’re having technical difficulties, you can email us at: [email protected] can also send us an instant message!

GoogleTalk – [email protected] Instant Messenger – HopkinsFastFactsMSN – [email protected]

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How To View Full Screen

Click Here

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Survey

SurveyAt the end of this FastFacts session, we’ll ask you to complete a short survey. Your honest comments will help us to enhance and improve future FastFacts sessions.

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Overpayments

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Agenda

How an overpayment is causedImpacts of overpaymentsProcessing of retroactive ISRs (Terminations, Hours Changes, and LOAs)Impact of moving from a fellowship to a wage positionDefining an overpayment advance Methods for collecting overpaymentsNew changes going forward

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How Is an Overpayment Caused?

Retro ISR processingForgetting or not being informed of terminations/leaves of absences

Be sure to run your check registers to identify if an individual is receiving paychecks in error. The location of the report is – Human Resources – Payroll Admin - Check / Direct Deposit Register

Retro benefit election formsDeletion of an action or recordData entry errors

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Impacts of Overpayments

Hardship for employeeBenefit issues (health care coverage, deduction of benefit dollars)Organization may lose moneyLoss of time that is invested in resolving and reconciling overpaymentsBehind the scenes - multitude of areas could be impacted

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Retroactive Terminations

What to consider before you initiate the ISR:

Effective dateAny pay/benefits owedMoving into a new positionAny future dated actions on employee’s recordSupplemental pay and/or hours submitted after termination date

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Retro Termination Example Termination Date: 9/1/2010

Future Dated Action: 9/8/2010

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Transaction Code: “CADO” Role Needed:

ZRHR_PT_TIMEENTRY or ZRHR_PT_TIME_ADMIN_DISPLAY (view only)

CADO - Time Sheet: Display Data

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CADO ResultsNo Hours after Termination Date

Hours after Termination Date

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Retroactive Hours Changes

What to Consider:

Position Maintain/PAC ISR vs. Hours Change ISRHours changing for salaried employees should have a new semi monthly rate

Semi rate ÷ by current hours × the new hours = new semi pay

Retro change in work schedule rule (example on right)

Example Retro Work Schedule Rule

Change

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Retroactive LOAsWhat to consider before you initiate the ISR:

TimelinessGreater than 5 consecutive days

Less than 5 days - Reduction in payException: Employee on STD, LTD, or receiving worker’s comp

LOA with or without paySTDWorkers compLTD100% pay (only utilized for faculty/students)Working while receiving disability

Work w/Divisional HR for new w/pay %Extending leave with/without pay

Email to extend an LOA without pay (S1, B1, W1)Email to extend LOA with pay (Hourly employees)

New ISR to extend LOA with pay (S1 Salaried employees)Type of Leave Change - New ISR required

Return from LOA

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Fellowship to Wage (Current Year)

Terminating Fellowship Starting Wage Position

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Fellowship to Wage ~ Payroll Result

Fellowship conversion guidelines: http://ssc.jhmi.edu/bin/o/g/fellowship_recipient_conversion_guidelines.pdf

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What Is an Overpayment Advance

An advance on earnings when the individual has a loss of earnings due to a retroactive change that lowers or decreases salaryEntered to prevent an individual from having a zero check or a greatly reduced paycheck until payment arrangement can be madeConsidered earnings and individual is taxed on these earnings

If possible, it’s best to repay these advances in the current year to ensure W2 earnings are accurate

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Methods for Collecting Overpayments

Department arranges for payroll deduction (active employees)Collect the amount overpaid directly from the employee via personal check or money order made payable to JHU/JHHS (active/terminated employees) – the checks need to be sent to payroll for depositRequest PRSS to proceed with attempting to collect salary overpayment by sending a letter to the employee and/or to the collection agency

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BW Overpayment ReportsThere are two BW Overpayment Reports available –

Report Title: Finance Overpayment Report-Report Location: JH-Report Library/Human Resources/Finance

Admin/Finance Overpayment ReportThe Finance Overpayment Report is the best report to run when you have terminated employees that were overpaid and hired in another department. Your department will be able to monitor the repayments using this report.Report Title: Payroll Overpayment Report

-Report Location: JH-Report Library/Human Resources/Payroll Admin/Payroll Overpayment ReportThe basic Payroll Overpayment Report will show the person Id, employee number and name, payment date, overpayment advance and overpayment advance fellowship, repayments, and balances.

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New Changes Going Forward New Changes Going Forward

System will be locked down - no changes to master data can be made prior to 01/01/2010

This date will keep moving forward every 18 to 30 monthsSlightly different dates based on first date of pay period (W1/B1)Minimize the retroactive periodHave to be more diligent in getting ISRs processed timelyAlso applies to financial entries – grant changes, etc.

Departments working with supervisors and faculty members to increase timely notification of terminations and leaves

Departments working with HR/PRSS will help to decrease overpayments

Email Overpayment Alerts

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Resource Websites

Salary Overpayment Assistance Located on the HR/PRSS Website

Fellowship to Wage GuidelinesChanging from Fellowship to Wage (vice versa)

Human ResourcesJHU Tax Office

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Today we talked about the causes and impacts of overpaymentsPlease review again at your leisure to be sure you fully understand the causes and what can be done to prevent overpaymentsTimely notification and processing of ISRs will greatly reduce overpaymentsReview BW Reports regularly Work with your departmental administrators and Divisional HR to help identify and resolve overpaymentsWork with employees and PRSS to recoup monies lost to overpayments

SummarySummary

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We’re going to open the phone lines now!There will be a slight pause, and then a recorded voice will provide instructions on how to ask questions over this conference call line.We’ll be answering questions in the order that we receive them.We’ll also be answering the questions that were emailed to us during the presentation.If there’s a question that we can’t answer, we’ll do some research after this session, and then email the answer to all participants.

Q&A

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Thank You!

Thank you for participating!We would love to hear from you.

Are there certain topics that you would like us to cover in future FastFacts sessions?Would you like to be a FastFacts presenter?Please email us at: [email protected]

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Survey

Before we close, please take the time to complete a short survey.Your feedback will help us as we plan future FastFacts sessions.Click this link to access the survey… http://connect.johnshopkins.edu/fastfactssurvey/

Thanks again!