Human Resources Information System (HRIS) Market Assessment

1. Human Resources Information System (HRIS) Market Assessment

2. Technology in Support of Employer’s Responsibility

3. ACA – Affordable Care Act HCM – Human Capital Management

4. Data Elements Required for ACA Compliance • Name • Company/Division • Location • Employment Status • Pay Frequency • Benefits Status • Hours Worked • Scheduled Hours • Pay Rate • W2 Wages

5. Data Elements Required for ACA Compliance • Birth Date • Hire Date • Rehire Date • Employment Status • Full-time/Part-time/Seasonal Indicator • Benefits Eligibility Date • Dependent Age • Coverage Begin Date • Waive Reasons • Plus many others we don’t yet know…

6. Data Elements Required for ACA ComplianceVarying Degrees of Automation Integrated and Unified Solutions are Preferred

7. Industry Approaches • Traditional Providers - most all traditional providers have some degree of ACA reporting, tracking, compliance • Payroll/HCM Companies – ADP, Paychex, Paylocity, Paycor, Paycom, Ceridian, Ultimate… • Benefit Administration Companies – BeneTrac, PlanSource, Benefitfocus, BenefitsConnect, SelectSource… • Similar approaches, different flavors. • Payroll/HCM Solutions Consistently Yield Best Result • ACA Compliance Companies – arriving on the scene • Equifax, Worxtime...

8. Industry Approaches • Static Reports • Point in Time & Effective Date Reporting • Limited Projection Capabilities (financial and liability) • Dashboard Capabilities (varying degrees of depth/success) • Vast Majority of Providers

9. Industry Approaches • Dynamic Reporting/Modeling • Projection Capabilities (with real-time alerts) • Dashboard Capabilities • Ability to Adjust Schedules (TBD) • Primarily Standalone/Vertical ACA Compliance Tools

10. Determining Full-time Employees • Leverages Payroll (basic demographic) and Time Data • Critically Important for Variable Hour Workforces • Static and Dynamic Reporting Capabilities • Incorporates All Measurement Periods (Standard, Initial, etc) • Most Vendors Appropriately Account for Breaks-in-Service (confirm with vendor) Compliance Refresher: Full-time EE = 30+ hours per week, on average LargeEmployer Minimum Essential Coverage Affordable & Min. Value Full-Time Employees Pay Penalties

11. Technology Summary

12. HR Technology – ACA Value • ACA Reporting is a Key Value Proposition for all HR Technology Vendors • Varying Levels of Automation & Completeness • Avoid ACA Penalties • Ensure compliance • Real-time management of staff and data

13. HR Technology – ACA Value • Manage Benefit Cost Liability • Project cost implications of ACA • Manage staff and policies to manage liability • Streamline Administration • Real-time access to data from a single source

14. Market Assessment

15. HR Technology Advisory Firm • Based in Orlando, FL • Mission:  Advancing HR through Technology • Sole Focus – HR Technology • Target Market:  SMB and the EB Agencies that Service SMB • Scott Millson • 17 Years – Hewitt Associates (Owner/Principal) • 4 Years – Regional HRO Provider (President) • 4 Years – MillsonJames (Founding Principal)

16. HCM Market Assessment Identifying the need and selecting an HCM provider can, at times, seem overwhelming. At MillsonJames, we are happy to help you assess your current state and objectively evaluate different vendors and solutions to help you make an informed decision. This document is intended to provide an overview of your current state and better understand the solutions available in the market that we believe are the best fit for your organization based on our discussions to date. Based on a July 18, 2014 discussion with various members of the Diocese of St. Petersburg (DOSP) team, we highlighted the following HR/Payroll activities and processes as those that are the most important and/or the most in need of re-engineering.

17. Process

18. Overall DOSP HCMObjectives • Improve overall efficiency and effectiveness of HR and HR processes for DOSP • Upgrade HR technology footprint • Automate benefit billing process • Increase automation of time capture and ensure consistent compliance and application of policy • Automate benefits administration processes (carrier feeds, eligibility, self-bill facilitation, etc) • Prepare for ACA compliance (reporting, projections, etc) • Provide for DOSP Volunteer tracking and compliance

19. Payroll Payroll • DOSP has partnered with IOI since 2010. • Most of the approximately 140 parishes and schools operate under their own FEIN and process according to varying frequencies and schedules. DOSPoperate as a master organization in terms of accessing the information, but most parishes/schools operates independently from a payroll/tax perspective. • The current payroll frequencies consist of: weekly, bi-weekly, semi-monthly; and monthly. The vast majority are BW or SM. There is 1 parish that is weekly and all priests are paid monthly.

20. Payroll Payroll • Each parish/school has their own GL/accounting system (and unique chart of account structures), so there is not an over-arching DOSP GL interface. Each parish may require their own GL interface to be built or, if nothing else, the ability to run their own GL report. • Across all DOSP entities, there is standardization of the following codes: earnings, deductions, job titles, and job codes. The parishes/schools have the ability to establish their own department structures. There may be a great deal of variability with this data, so a clean-up exercise prior to conversion is recommended.

21. Payroll cont. • Any live checks (if any) are distributed directly to the parish/school. • Garnishments/Support Orders are set up and financial payments are managed by IOI. • Customer service: The HCM/payroll service provider will interface with each parish/school directly. They are encouraged to contact DOSP first, but they can go directly to payroll service company. • HCM/payroll provider must be able to communicate directly with each individual parish/school (push communications, e.g.)

22. Time & Attendance (TAS) • Of the ~140 parish/schools, only 16 entities leverage an automated time and attendance system today. All other parish/schools utilize paper or other manual tracking methods. • There is a wide degree of variation for how parish/schools are handling time policies (lunch, breaks, rounding rules, exceptions, etc). This is highly problematic. • Current time policies are relatively straight forward. • TAS software utilized today is B4 Time. • There is no Affordable Care Act (ACA) tracking/reports available today. • Paid time off is tracked/managed manually today at most, but not all locations. Although there is a DOSP-specific policy, each parish/school has a great deal of exceptions and varying policy revisions.

23. HRIS • DOSP volunteers can be stored in the HRIS system. They will not be paid and DOSP cannot be charged for these ‘inactive’ records within the system. Mostly needed for tracking training and certifications. Time recording may be needed at some point down the line. This can be especially useful in tracking for Grants. • Workers’ Comp codes must be managed/stored within HRIS. Pay-as-you-go is not leveraged today. WC codes could be tied to job code selection/entry.

24. Benefits cont. • Current carriers are: UHC (medical, dental, and vision); Optum (Rx, FSA); Hartford (basic life, voluntary life, dependent life, and disability); Colonial (worksite). • Life/Disability programs have EOI/GI. • Life, LTD, and STD are currently managed via self-bill. • Retiree benefits need to be managed by HCM platform. • 401k recordkeeper is Mass Mutual. • 401k enrollment is manual today.

25. Reporting • Simple and comprehensive reporting (ad-hoc and standard) is a key requirement for HCM provider. • Billing reports must be able to be produced out of benefit system. • Retiree benefits billing must also be managed by HCM platform.

26. Process We leverage a tried and tested methodology to objectively assess the market. It is a four tier process that moves quickly from scope definition through deployment. MillsonJames serves in an advisory capacity through all phases, but stops short of actually implementing the system of choice. We do not implement solutions so that we can maintain our fierce objectivity.

27. Key Decision Criteria - DOSP Making any decisions regarding a new HCM partner is a rather large undertaking and should only be made after objectively gathering and evaluating key points. Based on our discussions to date, MillsonJames believes the following service/technology dimensions should be leveraged to arrive at a decision that meets the stated needs of the organization. • Completeness of solution & usability (across all – payroll, HR, benefits, time) • Mitigated Risk • Experience with Dioceses • Ability to support change management • Ability to achieve billing requirements • Comfort level with ongoing & implementation service processes • Security • Cost

28. Questions?