Case Study

Risk Mitigation and HR/Payroll System Utilization Overhaul for a National Construction Management Firm

 

  • High risk of fraud due to paying out of multiple systems without reconciling with audit trail.
  • Multiple tax payment and filing discrepancies.
  • Risk issuing incorrect W2s to 20% of employees leading to $580k in reversals, adjustments, errors.
  • 2% of total payments not posted to G/L.
  • Fiscal year close delayed due to discrepancies and difficulty with reconciliation.
  • Facing IRS back taxes, penalties and interest ($1.6m).
  • Implemented ADP HR/Payroll but continued to run legacy pay system as a “shadow” payroll.
  • Posted to G/L from legacy payroll, but processed all regular payments out of ADP, without reconciling the two systems.
  • Paid manual checks out of legacy system then posted to ADP to update employees’ records in ADP, often incorrectly.
  • Multiple, separate HR systems with different functionality and data.
  • Reconfigured HR and Payroll production environment and operations.
  • Reduced fraud risk by consolidating multiple databases and implementing audits and controls.
  • Leveraged existing HRIS investment; Retired legacy shadow payroll.
  • Supported HR and Payroll functions through staff reductions and reorganization.
  • Reduced multiple systems and administrative overhead by establishing centralized service delivery platform.
  • Created one global view of all employees and employee-related programs.
  • All planned modules, processes and tasks completed within tight project timeline.