Having payroll process documentation available can make a real difference during year-end.

It's that time again: year-end. If you find yourself wondering exactly how you processed year-end payroll last time, or hunting through your files to find last year's notes, you'll want to consider taking the opportunity to make a real difference by taking steps to document your payroll processes and procedures.

Payroll process documentation has real benefits

"There are so many good reasons to document your payroll processes," says Ginny Elkins, senior process consultant for Ceridian HRO. "You gain the ability to clearly identify opportunities to eliminate payroll activities that don't add value - which saves time. You increase quality and reduce errors by embracing consistent payroll processes - which saves money. And with the regulatory requirements from HIPAA, Sarbanes-Oxley and SAS70, documentation ensures you're ready if you're ever audited - which helps protect your organization."

Elkins sees real value in payroll process documentation. "One of the biggest benefits," she says, "is that you're providing assistance that really helps across the whole organization. After all, senior leadership at your company knows the benefit of documenting procedures 'end to end.' They appreciate having someone who can see the big picture. And you're building better relationships with other departments. Everyone gets real clarity about how employee payroll actions impact different parts of the organization."

"This is a great time of year to make documentation a reality," Elkins says. "With proper payroll process documentation, you can manage processes quantitatively, measure things such as error rates and process time, and reduce the time it takes to get new employees up-to-speed."

Types, levels and storage of payroll documentation

"When it comes to documenting your payroll processes," Elkins says, "make it easy on yourself. Something as simple as a desk manual can make a world of difference. Gather together standard operating procedures, formal policies, payroll system manuals and training manuals, so that everything's in the same place."

Consider segmenting your documentation into two levels: training and operational. "Different audiences need different things," Elkins says. "For new users who are learning your payroll processes, detail the 'click-by-click' steps. Once your audience can navigate the system, operational documentation can focus on the task steps that explain payroll auditing and validation points."

If you post your materials online on your organization's intranet, Elkins says, "Make sure that the materials you post are 'read-only' documents. And use version control to make sure you stay on top of the inevitable updates and changes."

Payroll process documentation planning

"Planning," Elkins says, "can be fun! Ask yourself, 'What is our goal?' You might find that you want to standardize processes, strengthen compliance and deliver cross-training more effectively. Many times, there's a desire to reduce dependency on key staff at a particularly busy time of the year. You know your organization best, so explore your goals. It's a great way to start."

Elkins believes there's real value in defining the scope of your initiative, because that helps you plan for your different audiences. "What needs to be documented?" she asks. "Internal payroll department processes? Cross-department processes for HR, Accounting/Finance, IT? Or all of these? Once you've set the scope, you know who you're writing for. Take some time to map out what level of detail this will require and whether the users have basic payroll or system knowledge. Think about the best approach to communicate with your audiences; should the documentation be end-to-end processes that cross departments? Answers to these questions will make it much easier to determine the level of detail and whether the documentation will be supported by system training manuals."

Writing style impacts payroll processing documentation success

"One of the most important considerations in documentation," Elkins says, "is to write as if you are speaking to the processor. Use bullets instead of paragraphs and short, concise action statements. Use click for a button or link, select for highlighting or choosing from a list, press for a keyboard action and enter for information that a user needs to provide instead of key or type. These small details can have a huge impact on success."

For example:

	Use	Instead of
	Select pay frequency.	You will need to choose the correct pay frequency.
	Validate the pay code.	Check that the pay code you have selected is correct.
	Select pay code type.	Key in the right pay code.
	Click Save.	To save your entry, click on the Save key.
	Start at the employee page.	From the employee page, start your entry.

Go forth with great payroll processing documentation

"Once your documentation is complete," Elkins says, "you're ready to roll. Remember, though, that this is a living document. Create a 'Control Board' to manage changes. Schedule periodic reviews and ongoing maintenance. Then go forth into the future with the kind of great documentation that strengthens compliance, builds better relationships with other departments and saves time and money - this year and every year."

Find out more about Ceridian's payroll solutions.

Call us at 1-800-PAYROLL or contact us online.

Adapted from the December 2007 issue of Ceridian Connection.