Expert: Shirley McAllister, CPP, PHR - 3/4/2009

Question
Hi Shirley,

I was hoping that you could help me out.  

We are a Canadian company based in Ottawa, Ontario and our US company located in California is essentially closing, however the structure of the organization is remaining the same.  

We are laying off 1/2 the US workforce (the current payroll staff is handling final payrolls/termination of benefits etc.) and we will be keeping approx. 13.5 people on payroll / benefits in the US spread over a few states such as Washington DC, California, Michigan etc.   

They currently have a generous pension of 15% AND they do have a 401K plan both of which will be my responsibility along with the administration of HR, payroll and benefits.

This is being handed over to me effective May 1/09 and I need to get prepared, but to be honest I am in need of some guidance on where to start.  As they are located in the US I have no way of accessing their current payroll nor their employee files.  

Can you think of any preliminary questions that I can ask of our US company to get prepared to take over the HR, payroll and benefits?  

I have the composed the following questions, but am sure there are more.

1.   Payroll provider?  It’s ADP
a.   Can you provide me with a contact name and telephone no.?  
b.   Do I need to be added as a point of contact to be able to speak to them and obtain information?  If yes, can I ask that you do that for me?  I won’t be contacting them until it is necessary for me to do so.
c.   Can you provide me with a pdf’d copy of ONE (1) of your last payroll registers from ADP?  Also, can you include a copy of all the reports provided by ADP?  I would like to familiarize myself with the payroll reports.

2.   Who are your benefits providers?  
a.   Can you provide me with a contact name and telephone no. for each.  
b.   Do I need to be added as a point of contact to be able to speak to them and obtain information?  If yes, can I ask that you do that for me?  I won’t be contacting them until it is necessary for me to do so.

3.   Who is MSI’s 401K provider?
a.   Can you provide me with their contact information?   
b.   Do I need to be added as a point of contact to be able to speak to them and obtain information?  If yes, can I ask that you do that for me?  I won’t be contacting them until it is necessary for me to do so.

4.   Pension plan
a.   Can you confirm which employees will remain on the plan after the layoffs have been completed?
b.   How are the pensions calculated?
c.   Can you provide me with their contact information?   
d.   Do I need to be added as a point of contact to be able to speak to them and obtain information?  If yes, can I ask that you do that for me?  I won’t be contacting them until it is necessary for me to do so.

5.   HR
a.   Can I get a copy of the template for your letter of employment and a copy of any other related new hire paperwork (HR, Payroll and benefits enrollment info.)
b.   Can I get a copy of ALL of your existing HR policies so that I may look over?  Please forward to me by email.

I can’t think  of any other questions to ask, but if you would provide me with some insight into what else I should know going into administering a US payroll I would appreciate it!

Thanks!
Kelly


Answer
A big job you have been handed. This is actually familiar to me. I am in the U.S. and I do the Canadian Payrolls through ADP in Canada.

It would depend on how the payroll office is handling payroll if they are doing it on the internet or have ADP software.  If they have ADP software you will need the interface on your computer or convert it to web based.

In the U.S. we have Federal tax, State Tax, Loca tax for some places, Fica tax , medicare tax, Suta tax and Futa tax.

Depending on whether ADP does the taxes for you or not and I would suggest you have them do your taxes you would have to remit and file tax forms for all of the above. You can contact ADP and have it set up so you can receive the reports over the internet. You have to go in and get them.

401K must be remitted as soon as the money is able to be separated from payroll. Usually within 5 days, I send mine the monday after payroll as my payroll is on Friday.

You definately need a copy of their employee handbook. This is essential.

If ADP is doing the taxes than you are okay there, but if they are not you will need all that information and you need to pay ADP to do it because it takes a while to figure out the forms. If they are not doing it and the company expects you to do the taxes we will become best buddies.  I can give you a private email if that happens.

My best suggestion would be this: The company send you down to California to learn the payroll process from the current payroll members before they leave.  You need to Contact the American Payroll Association buy a membership and find a good class or two on Calfornia payroll and on Multi state payroll. California payroll is like doing Quebec payroll in Canada to the rest of the U.S.

They do have a congress May 19-23 for 5 days and you could take all the classes at one time. You can find information on it on their website www.americanpayroll.org. or you may be able to find a class at the Canadian Payroll Association on canadians preparing US payroll. The US one would be better. You actuall have an exhibit hall where you can meet ADP and talk to them about things.

HR is different for California than the rest of the states also, they are almost a country within the states. Lots of rules in that state that do not exist in the other states.

Each state has it's own department of labor site and they all have different payroll rules. You need to familiarize the major federal legislation FLSA, FMLA, ADA,HIPPA, COBRA  among others and the new president is passing new ones every day.

There is a book by APA called the Payroll Source..you need that book.  Also SHRM (Society of Human Resources) is a good agency for U.S. HR.

My email is smcallister@aimintl.com. You are going to need some help. I do not have a payroll in California any longer, but I have studied their rules some. I am absolutely not an expert on California payroll, but I will help you find the information you need.

Shirley