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Supplementary Payroll Procedure Page: of 15

Author: Head of HR Version: 2.0

Date of Approval: 2 July 2014 Status: Final

Date of Issue: 7 July 2014 Date of Review: July2017

Supplementary Payroll Procedure




Date of Issue: 7 July 2014 Date of Review: July 2017

This policy is available in alternative formats on request. Please contact the Corporate Governance Assistant on

01204 498400

Recommended by Payroll Steering Group/Policy Group

Approved by Executive Management Team

Approval date 2nd July 2014

Version number 2.0

Review date July 2017

Responsible Director Director of Organisational Development

Responsible Manager (Sponsor) Head of HR – HR Hub

For use by All Trust employees





Change record form

Version Date of change Date of release Changed by Reason for change

0.1 2nd

October 2012 3rd

October 2012 L. Ward Document creation

0.2 18th

October 2012 18th

October 2012 L. Ward Policy Group consultation

0.3 2nd

November 2012 2

nd November

2012 L ward Policy group & Payroll provider consultation

1.0 9th

November 2012 9

th November

2012 L Ward Submission to EMT for approval

1.1 17th

April 2013 18th

April 2013 J McCreadie Update following in the introduction of a

new payroll provider

1.2 16th April 2014 V Kirfoot Annual Review

2 2nd

July 2014 7th

July 2014 L Ward Approval by EMT





Supplementary Payroll Procedure Contents

1. Introduction 5

2. Purpose 5

3. Scope 5

4. Associated Documentation 5

5. Definitions 5

6. Benefits 6

7. Roles and Responsibilities 6

8. Exceptions 7

9. Procedure 8

10. Monitoring and Review 9

Appendix 1: Equality Impact Assessment Report 10





1. INTRODUCTION 1.1 This procedure sets out the arrangements for processing omitted payments via a

supplementary payroll on a monthly basis. The Supplementary Payroll process is in effect a scaled version of normal monthly process.

2. PURPOSE

2.1 The purpose of this procedure is to:

Provide a method for making additional payments to employees which have been omitted from the normal monthly payroll.

Reduce considerably the number of Advance payments that need to be issued each month

Provide a clear procedure for the authorisation, processing and monitoring of payments made on the Supplementary Payroll.

2.2 This procedure is not to be used routinely by managers as a way of paying employees monies that should have been reported within the normal monthly payroll processing timescales. The Supplementary Pay run should not be used to pay late claims or submissions.

3. SCOPE 3.1 The procedure applies to all employed and bank staff paid by North West Ambulance

Service NHS Trust through the Electronic Staff Record database. The procedure also applies to the Trust’s Payroll Provider.

4 ASSOCIATED DOCUMENTATION

4.1 You should read this procedure in conjunction with the management tools available on the HR Portal and the following related policies and procedures:

Over and Underpayments of salary procedure

Procedures relating to Advance payments

5 DEFINITIONS 5.1 The Supplementary Payroll process is in effect a scaled version of the normal monthly

process. The process is designed to enable the payment of monies missed from the normal Payroll processing for the month and will normally make payments to staff 5 working days after the normal pay date. This timeline has been adopted as it is considered a reasonable period of time for underpayments to be identified by the





employee, manager or payroll and an acceptable period of time for underpaid monies to be credited to employee account.

6 BENEFITS 6.1 The following benefits arise from implementing a supplementary pay run. 6.2 Benefits to the Trust

Late new starters that miss the main monthly run can be processed on the supplementary, which means they are included in the General Ledger (GL) costing for that month

Reduced cost for producing fewer Advance requests by Finance Department, also time saved no longer needing to process high volume of Advances

HR and Finance time spent collating high volume of Advances no longer required, as decision to pay on Supplementary responsibility of Payroll and Manager

Reduction in estimated payments and errors arising from reprocessing of advances and payroll corrections

6.3 Benefits to the Employee

New starters that miss the main monthly run will receive an in month pay advice

Late terminations in month can be processed and will receive P45 to pass onto new employer

Underpaid monies will be clearly identified on ESR pay advice

Correct payments made rather than estimated payments

Advances option still available for urgent payments 6.4 Benefits to Payroll

Reduced cost in payroll resources for producing supplementary against time required to calculate individual Advance payments and liaising with Finance Department

7 ROLES AND RESPONSIBILITIES 7.1 Management have a responsibility to ensure the following:





7.1.1 Managers are responsible for ensuring that they have robust processes in place to avoid the necessity for additional payments via the supplementary payroll

7.1.2 Managers are responsible for ensuring that they check employee claims for additional payments against source documentation and the original ETAD submission, to ensure that payments were omitted from the main pay run and the employee is entitled to receive the payment, before authorising.

7.1.3 Managers are responsible for ensuring that claims for underpayments relating to

overtime, meal payments etc were submitted on time by the individual. If they were submitted late then they should be processed on the next full payrun and not via the Supplementary Payrun.

7.1.4 Managers are responsible for ensuring that accurate advice of missing payments are made to the Payroll Provider and appropriately authorised and that local records are retained to ensure that no duplicate payments are made.

7.1.5 Managers are responsible for reviewing payments made in their area on the supplementary pay run, identifying why the need for the payments arose and taking corrective action to prevent reoccurrence.

7.2 Human Resources Department Responsibilities: 7.2.1 The Human Resources Department has a responsibility to monitor the implementation of

the procedure and to ensure that procedures are managed fairly and consistently across the Trust. Human Resources will provide training, guidance and support to line managers on the operation of this policy.

7.2.2 The Human Resources Department is responsible for monitoring the level of monthly

payments made via the supplementary pay run and for identifying trends or issues which require intervention.

7.3 Employee Responsibilities:

7.3.1 Employees are responsible for ensuring that claims for payment are forwarded to the authorising manager in a timely manner. Claims not submitted within the correct timescales will not be considered for the Supplementary run.

7.3.2 All employees are required to follow the correct process set out in this policy for identifying underpayments and to ensure that any claims made are legitimate.

8 EXCEPTIONS

8.1 It is acknowledged that on occasion it would be unacceptable to expect an employee to wait for the Supplementary Payroll payment in their account. In these cases it would be expected that an urgent Advance payment should be raised through the normal process.





These cases should be the exception rather than the rule and will only be considered in the following circumstances:

Where an employee has received no basic pay

Where an employee has been significantly underpaid basic pay e.g. half pay rather than full pay

8.2 Non-payment of travel expenses will not normally be considered for payment during a

supplementary pay run. Exceptions to this rule will be considered where the underpayment is significant, where the underpayment is not the fault of the employee and where non-payment would cause hardship.

Payment of travel expenses to lease car holders on the supplementary pay run will not be considered as the overall value of claims will be lower.

9. PROCEDURE

9.1 On receipt of their payslip, where an employee realises they have been underpaid they

should make contact with their manager in the first instance.

9.2 The manager should then check the following:

Was the payment claim included on the last ETAD submitted – if it was then the employee should be directed to speak with Payroll to check whether they have been underpaid

Was the claim for payment e.g. timesheet, overtime claim etc., submitted by the individual within the agreed timescales

If the payment claim was not on the original ETAD submitted the manager but was submitted on time by the individual, the manager should check the relevant source document to ensure that the payment claim is appropriate.

9.3 If the underpayment is due to Payroll omission the employee should contact Payroll.

Payroll should enquire with employee if they are prepared to wait until next month’s salary or would prefer to be paid via supplementary payroll. Where the employee prefers to be paid via the supplementary payroll, Payroll should process the payment and enter the employee details on the relevant log.

9.4 If, following checks, the manager identifies that the employee underpayment is due to

manager omission the authorised manager i.e. a payroll authorised signatory, should supply written confirmation of the omitted details by email to [email protected] and request payment via the supplementary payroll. This request must be made by 12:00 on the next working day following the pay date.

9.5 The advice to Payroll must be submitted from an authorised signatory and must include

the following details:





Name of employee

Assignment number

Organisation

Sufficient details of payment due to enable an accurate payment to be made e.g. 15 hours overtime at time and a half

9.6 On receipt of the authorising email Payroll should process the payment via the

supplementary payroll and retain appropriate records. 9.7 Timescales for supplementary payroll 9.7.1 Dates may vary slightly month by month depending on where the weekend falls within

the Payroll process. The payroll timetable is available on the HR portal and can be found using the following link https://intranet.nwas.nhs.uk/directorates/hr-organisational-development-directorate/hr-portal/

Requests for payment via the supplementary payroll must be received by Payroll by 12:00 the next working day following pay day.

Payroll will run the GL/P35 interface by close of business on the 4th calendar day following Payday

Payments will be received into the employee’s bank account 5 working days after the normal monthly payday.

10. MONITORING AND REVIEW 10.1 The Director of Organisational Development is responsible for monitoring overall

compliance with this procedure. 10.2 This procedure will be reviewed annually; however if national guidance or legislation

changes then the procedure will be reviewed earlier. 10.3 The Procedure will be available to all staff on the HR Portal / NWAS Intranet page.

https://intranet.nwas.nhs.uk/directorates/hr-organisational-development-directorate/hr-portal/

https://intranet.nwas.nhs.uk/directorates/hr-organisational-development-directorate/hr-portal/





Appendix 1: Equality Impact Assessment Report Name of Policy, Service or Function Supplementary Payroll Procedure Equality Impact Assessment carried out by (include name and job title) Lisa Ward, Head of Human Resources Date of Equality Impact Assessment 22nd April 2014

Step 1: Description and Aims of Policy, Service or Function Overall aims

The purpose of this procedure is to:

Provide a method for making additional payments to employees which have been omitted from the normal monthly payroll.

Reduce considerably the number of CHAPS payments that need to be issued each month

Provide a clear procedure for the authorisation, processing and monitoring of payments made on the Supplementary Payroll.

Key elements of policy, service, process The procedure outlines the benefits and responsibilities of staff, managers and our payroll provider in implementing supplementary pay. It defines what can be paid under supplementary pay and the process for checking, authorizing and advising payroll to authorize those payments. It includes a timetable for for each month. Who does the policy, service or function affect? All employed staff, all bank staff and our externally contracted Payroll Provider.

How do you intend to implement the policy or service change (if applicable) The procedure will be included on the HR Portal. A simple guide and FAQs will be produced. These will be distributed to all managers and staff involved in processing pay and will be published through the Staff Bulletin. The process has been agreed with the Payroll Provider and their internal process documents have been aligned with the procedure.





Step 2 : Data Gathering

Summary of data available and considered Analysis has been undertaken of the payments processed via the Supplementary Payrun and Advances over the last 12 months. This indicates that staff from all protected groups have been affected by underpayments. It has been identified that the most significant underpayments (non-payment of salary) tend to relate to staff returning from maternity leave or long term sickness and this has been addressed through an exception in the procedure which will seek to eliminate any disadvantage arising from the implementation of the supplementary pay run. There have been no grievances relating to non-processing of payments vai the supplementary payrun which indicates that the payments are being fairly processed.

Step 3: Consultation Summary of consultation methods The procedure has been consulted with staff side representatives, our existing Payroll providers and advice has been taken from another payroll provider who are supporting us and who routinely run supplementary payrolls for other clients





Outcomes of data analysis

Equality Group Evidence of Impact

Gender None identified

Race/Ethnicity None identified

Disability The highest value underpayments tend to relate to returns from long term sickness which have not been notified to payroll by the manager and as a result the individual may not receive any salary. There is a higher likelihood of individuals in this group being considered as disabled and therefore there could be a detrimental impact from implementing the procedure because payments made through the supplementary pay procedure will take longer than CHAPS payments but this has been identified and addressed by allowing for exceptions which can still be processed through CHAPS.

Sexual Orientation None identified

Religion or belief None identified

Age None identified

Maternity The highest value underpayments tend to relate to returns from maternity which have not been notified to payroll by the manager and as a result the individual may not receive any salary. Therefore there could be a detrimental impact from implementing the procedure because payments made through the supplementary pay procedure will take longer than CHAPS payments but this has been identified and addressed by allowing for exceptions which can still be processed through CHAPS.

Gender reassignment None identified

Marital status None identified

Outcomes of consultation

Equality Group Evidence of Impact

Gender None identified

Race/Ethnicity None identified

Disability None identified

Sexual Orientation None identified

Religion or belief None identified

Age None identified

Maternity None identified

Gender reassignment None identified

Marital status None identified





Step 4 & 5: Impact Grid

Relevant Equality Area

Areas of impact identified Is the impact positive or negative?

Key issues for action

[Will form basis of action plan]

Gender

Race/Ethnicity

Disability The highest value underpayments tend to relate to returns from long term sickness which have not been notified to payroll by the manager and as a result the individual may not receive any salary. There is a higher likelihood of individuals in this group being considered as disabled and therefore there could be a detrimental impact from implementing the procedure because payments made through the supplementary pay procedure will take longer than CHAPS payments but this has been identified and addressed by allowing for exceptions which can still be processed through Advances.

Negative Already addressed in the procedure – no further action required

Sexual Orientation

Religion or belief

Age

Maternity The highest value underpayments tend to relate to returns from maternity which have not been notified to payroll by the manager and as a result the individual may not receive any salary. Therefore there could be a detrimental impact from implementing the procedure because payments made through the supplementary pay procedure will take longer than CHAPS payments but this has been identified and addressed by allowing for exceptions which can still be processed through CHAPS.

Negative Already addressed in the procedure – no further action required





Step 6: Action Plan

Name of Policy or Service:

Issue identified and equalities group or communities affected

Action to be taken By When Who By Expected outcome Progress

All Monitoring of procedure and payments made through the supplementary

payrun

Ongoing HR Hub Manager Any further issues identified

Continues to be monitored through

monthly payroll contract meetings.

Summary of decisions and recommendations

Potential areas of negative impact identified for protected groups (disability and maternity) but these have been identified through data analysis and exceptions built into the procedure to address any potential negative consequences





Step 7: Monitoring arrangements Ongoing monitoring of payments made through monthly supplementary pay run.

Step 8: Date of next Equality Impact Assessment At review of procedure

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