Service Level Agreement for the Provision of a Managed Payroll Service To

Service Level Agreement for the provision of a Managed Payroll Service to:

Wokingham Schools

Contents

1Document Control

1.1Document Status

1.2Document Owner

1.3Distribution

1.4Amendment History

2Introduction

2.1Purpose

2.2Review

2.3Objective of the Service

3Service Overview

4Service Definition

4.1Payroll Checking and Approval

4.2Payslips

4.3P45s

4.4P60s

5BACS Processing

5.1Inward Interfaces

5.2Outward Interfaces

5.3End-of-Year Processing

5.4Overpayment Process

5.5Pensions Deductions

5.6Pension Auto Enrolment Administration Service

5.7Reporting

5.8Enquiry Service

5.9Application Configuration Amendments

5.10Bulk Changes

5.11Support and Consultancy

5.12P11D

6Processing Schedules

6.1Periodic Processing Schedules

6.2Tax Year End Processing Schedule

7Customer Focus

7.1Service Review Meeting

7.1.1Service Standards and Reporting

7.1.2Problem Resolution

7.1.3Contacts and Escalation Procedures

8Service Availability

8.1Payroll Support

9Selima Contacts

10Customer Contacts

10.1Customer Addresses

11Contacts & Response Protocol

11.1Telephone Enquiries

11.2Written Correspondence

11.3Protocol

12Appendices

12.1Output Reports/Files

SLA for the provision of Managed Payroll Service to Wokingham Schools

1Document Control

Version 1.0

1.1Document Status

Live

1.2Document Owner

This document is maintained and owned by Selima Payroll Manager.

1.3Distribution

This document will be distributed to one customer representative who is identified in the Customer Contacts section.

1.4Amendment History

2Introduction

2.1Purpose

The purpose of this Service Level Agreement (SLA) is to define the Service provided by Selima pursuant to an agreement between Selima and Wokingham Schools (the Customer) dated from the commencement of the Service.

2.2Review

This document will be reviewed jointly by the Customer and Selima at least annually to determine whether modifications are required. Such changes will be handled in accordance with the procedure outlined in this document.

2.3Objective of the Service

The objective of the Services is to deliver a timely, accurate and complete service to the Customer.

The SLA defines the service and the service level with the objectives of:

• clearly defining responsibilities
• ensuring effective management of the Services
• defining effective communication channels
• documenting problem resolution and escalation processes

3Service Overview

Selima will manage the service activities defined in this document for the Customer. The Service will operate in accordance with this SLA.

The Customer is responsible under the Data Protection Act for the source and accuracy of all data held in the Systems and for registering themselves as a current Data User, and for satisfying any employer statutory requirements.

The Customer will appoint a representative from their organisation, to act as the Nominated Contact to co-ordinate with Selima concerning all matters relating to the operation of the service. It is the responsibility of the Nominated Contact to approve any general communications relating to issues that may or will impact on the service provided, for example, changes in policy, significant changes to service requirements and amendments to processing schedules.

4Service Definition

Responsibility of either Selima or the Customer is indicated by “Yes”.

Payroll Maintenance and Processing

Selima / Customer
The customer will provide full details of all new starters by appropriate documentation or electronic means i.e. Vision Starter Wizard or interfaces by the agreed schedule. / Yes
Create a new record on the payroll system for all new starters. / Yes
Input P45 details for new employees and inform HMRC of the commencement of employment. / Yes
If no P45 is available customer will supply P46. / Yes
The customer will provide full details of all leavers by appropriate documentation or electronic means by the agreed schedule. This could include outstanding leave, variation to pay, outstanding loans or any other special payment instructions. / Yes
Calculate the final payment due to last day of service. / Yes
Pay or recover outstanding leave. / Yes
Recover any outstanding loans and action any other special requests. / Yes
Prepare and dispatch P45s. / Yes
Complete and return National Insurance certificate to employee’s home address. / Yes
Complete and return SSP1(L) to employee’s home address. / Yes
Apply statutory rules affecting payments after leaving. If appropriate within the next payroll run. / Yes
Death in Service – Liaise with customer HR to arrange payment of any outstanding payments. / Yes
If any leaver information becomes known after the agreed deadline a telephone call or email will be acceptable to prevent an overpayment / Yes
The customer will provide full details of all temporary and permanent variations to pay by appropriate documentation or electronic meansby the agreed schedule. / Yes
Update the payroll with all temporary and permanent variations to pay. / Yes
The customer will provide full details of all Absence details by appropriate documentation or electronic meansby the agreed schedule. Including; SSP, SMP, Jury Service, Adoption Pay, Paternity pay. / Yes
Provide details or changes to any Occupational Sickness, Maternity, Adoption or Paternity schemes. / Yes
Process all absences and all sickness of half a day or more to calculate SSP, Occupational Sick Pay, SMP, Jury Service, Maternity Pay and Adoption Pay. And inform the schools one month before pay to reduce / Yes
Where SSP or SMP is not due issue form SSP1 and SMP1. / Yes
Calculate, record and make necessary reductions to salary for periods of half day and unpaid sickness, SSP, SMP, Maternity pay, Paternity Pay, leave without pay and Jury Service. / Yes
Provide monthly list detailing sickness absences and entitlement remaining (Appendix 1) / Yes
Customer will operate procedures for Jury Service to ensure the correct adjustments are offset against salary. / Yes
Run the Payroll Calculation process to:

• Calculate payments and allowances
• Calculate gross pay
• Calculate deductions
• Calculate net pay

/ Yes
Run Error and Warning reports, check and take appropriate action. / Yes
Check payroll results against Customer parameters and highlight any issues. / Yes
Provide interim report (Appendix 1) for the customer to check the payroll results. / Yes
Inform Selima of amendments required following payroll calculation. / Yes
Amendments due to Selima errors will be corrected and individuals or the full payroll will be processed and new reports sent for authorisation. / Yes
Amendments due to Customer errors will be corrected and individuals or the full payroll will be processed and new reports sent for authorisation. Note: Additional charges may be incurred. / Yes
Run Costing Process. / Yes
Roll payroll forward, check and take appropriate action if required. / Yes
Request any payments outside of the normal payroll processing schedule. / Yes
Process emergency payment requests. An additional charge may apply. / Yes

4.1Payroll Checking and Approval

Selima / Customer
Run standard control and exception reports. / Yes
Using the control reports, exception reports and spot checks, check that the payroll balances and that the results within agreed parameters. / Yes
Conduct a full check of the payroll.
The following checks will be made:
Input checks

• Check that all data, in paper or electronic form, has been received from an authorised source
• Check that manual and electronic input has been correctly applied and that data has not been entered more than once
• Check that all manually calculated values have been input and processed correctly
• Check that any advances have been recovered correctly.
• Check that payments to starters and leavers have been correctly entered and processed
• Check calculation of maternity pay
• Check that all half-pay and no-pay absences have been correctly administered and processed
• Check all statutory deductions are made correctly

Control Checks

• Check exceptions report and take appropriate action
• Check brought forward values equal previous carried forward values (taking account of any cumulative value adjustments).
• Check gross pay values that exceed agreed limits.Limit is £5000
• Check individual net pay values that exceed agreed limits. Limit is £3000
• Check that values balance on deduction reports
• Check number of employees paid and leavers
• Check reasonableness of total gross pay, tax, NI and superannuation by reference to previous values

/ Yes
Deliver to the customer agreed control and exception reports. / Yes
Ensure that relevant contacts are available to authorise the payroll as per agreed schedule. Signature of the BACS authorisation form for net pay is considered by Selima to be acceptance by the Customer of the payroll. / Yes
Check to confirm accuracy and authorise payroll in order to make payment. Normally this authorisation given by completion of the BACS authorisation form. / Yes
Receive authorisation as per agreed schedule. / Yes
Prepare, check, distribute listings of third party payments and make payment if applicable as per agreed schedule. / Yes
Reconcile payments made via BACS to source bank account. / Yes
Produce and balance periodic P35 report to payroll control reports. / Yes

4.2Payslips

Selima / Customer
Generate the payslip process / Yes
Print the payslips for schools who have requested them and make them available to the Customer as per the agreed schedule. Payslips will be quality checked. Any defective payslips will be securely destroyed and reprinted / Yes
Payslips will be delivered to the appropriate location. / Yes
Inform Selima of amendments to delivery addresses. / Yes
Upload all payslips to portal for viewing. / Yes

4.3P45s

SELIMA / Customer
Run the P45 process. / Yes
Print P45s. P45s will be quality checked. Any defective P45s will be securely destroyed and reprinted. / Yes
The number of P45s printed will be checked against the list of leavers provided. / Yes
P45s will be sent to the appropriate destination. / Yes
Inform Selima of amendments to delivery addresses. / Yes

4.4P60s

Selima / Customer
Run the EOY Process / Yes
Create individual P60 files for all schools. / Yes
Merge all individual P60 files into one file and load onto the poprtal / Yes
Inform Customer that P60’s are available for viewing on portal. / Yes / Yes

5BACS Processing

Payments to be made via BACS are detailed in the agreed schedule. These payments will be made on the dates shown. If this is a non working day then the previous working day will be used. These dates may also be varied by mutual consent of both the Customer and Selima and by dates nominated by BACS as non processing days.

Selima / Customer
Generate the BACS file. / Yes
Run BACS Process Log, check and take appropriate action if required. / Yes
Confirm accuracy of figures and dates on the BACS authorisation form. / Yes
Ensure the BACS file is transmitted in accordance with agreed schedule / Yes
Retrieve and distribute BACS input reports / Yes
Maintain appropriate limits with BACS to ensure control over payments being made. / Yes
Ensure sufficient funds are available in the source bank account to fund the BACS transmission. The funding of the all BACS payments will be through the Customer’s nominated bank account. Selima will not, under any circumstances be liable for funding the payment or any other costs incurred as a result of the subsequent late availability of funds. / Yes
Ensure the Bank holding the source account has given the appropriate permissions for Selima to transmit BACS files on the Customer’s behalf. / Yes
Inform Selima of any changes to the source bank account or BACS user number. / Yes
Recall both individual and complete BACS transmissions including liaison with BACS, the banks and employees. / Yes

5.1Inward Interfaces

Selima / Customer
Provide a file in the agreed format for each inward interface in accordance with the agreed schedule. / Yes
Using the interface software load the interface file in accordance with the agreed schedule. / Yes
Run interface errors and warnings reports, check and take appropriate action if required. / Yes

5.2Outward Interfaces

Selima / Customer
Using the interface software extract the interface file in accordance with the agreed schedule. / Yes
Provide a file in the agreed format for each outward interface. / Yes

5.3End-of-Year Processing

SELIMA / Customer
Balance year-end figures with payments made to HMRC. / Yes
Produce trial P14 for approval. / Yes
Confirm accuracy and authorise production of P14. / Yes
Submit paper P35 with balancing spread sheet to Customer / Yes
Complete, authorise and return P35 to Selima / Yes
Submit final EPS Return to HMRC as per agreed schedule and before due date. / Yes
Send and receive agreed forms for end-of-year to and from HMRC using electronic communications. / Yes

5.4Overpayment Process

Selima / Customer
Calculate all instances of overpayments / Yes
All staff still employed will have the monies deducted from subsequent salary payments. / Yes
All staff who have left will have a sundry debtor account raised. / Yes
Provide a list to Customer on a monthly basis detailing existing overpayments. / Yes
Customer to provide a list to schools on a monthly basis. / Yes
Advise Schools of action to be taken to recover any overpayment / Yes
AdviseSelima of any special circumstances whereby recovery is to be delayed / stopped. / Yes
Provide standard letter details. / Yes
Send letters to the employee notifying them of the overpayment. Copies to the Schools. / Yes
Selima to notify the Customer of any outstanding balances that are unrecoverable from the employee. / Yes
All outstanding debts at the end of the Tax year will be netted to ensure correct Tax & Ni position. / Yes

5.5Pensions Deductions

Selima / Customer
Maintain the Product such that it will calculate pension contributions in accordance with legislation and regulations. / Yes
Supply definitions of Rules, Elements, User Defined Calculations and other items that determine an employee’s and employer’s pension contributions. / Yes
Produce pension forms in respect of new starters, leavers and change of circumstances. / Yes
Provide the information to the customer to allow the customer to meet its obligations to the Pension Administrator according to timelines set in the customer and the Pension Administrator’s SLA. / Yes
Collect pension data from all sources including both manually entered data and data entered via an interface program. / Yes
Deduct the pension contributions in accordance with the agreed rules. / Yes
Complete annual pension returns – contributions/service. / Yes

5.6Pension Auto Enrolment Administration Service

Selima / Customer
Customer to confirm pay elements for pay, postponement or transition / Yes
Create the parameters within the payroll system / Yes
Monitor the workforce and assess eligibility to pension scheme membership for each payroll period. / Yes
Auto enrol all eligible job holders into a qualifying pension / Yes
Print and distribute letters to all eligible job holders advising them that they have been auto enrolled into a qualifying pension scheme and the effective date. / Yes
Letters to be provided by the customer in the format to allow Selima to mail merge relative data. / Yes
Each pay period provide schools with a list of employees who have been auto enrolled. / Yes
Inform Selima of any eligible job holders who, as a result of auto enrolment, wish to ‘opt out’ of a qualifying scheme, by the way of an ‘opt out’ form / Yes
Action ‘opt out’ requests in the first available pay period. / Yes
Refund contributions to employee if opt out is within 3 months of auto enrolment / Yes
If ‘opt out’ request is more that there months after auto enrolment, provide pension provider with leaver information / Yes

5.7Reporting

Selima / Customer
Produce and dispatch standard reports contained in the Payroll suite of reports. (Appendix1) / Yes
Provide location details, email/FTP site, for the dispatch of standard outputs. / Yes
Produce ad hoc reports on request. Note additional charges may be applicable. / Yes

5.8Enquiry Service

Selima / Customer
Respond to written enquiries from third parties such as HMRC, DWP, Courts, Child Support Agency etc in accordance with timescales specified. / Yes
Respond to requests for copy payslips, P60s and statement of earnings letters. / Yes
Respond to payroll queries from Customer representatives. This must be an authorised contact and have all relevant information available when making an enquiry, employee name, payroll number, and either date of birth or NI Number. / Yes
Respond to payroll queries from Employees. They must quote their company name and payroll reference number and be prepared to give other information for security purposes, for example date of birth or NI number. / Yes
Respond to written enquiries from Customer representatives or employees (Letters, emails) in accordance with the published response protocol. / Yes
Inform authorities in writing that Selima is acting as Agent on behalf of Customer. / Yes
Refer any enquiries from other parties to the Customer’s Nominated Contact. / Yes

5.9Application Configuration Amendments

Selima reserve the right to make additional charges over and above the agreed service charge dependant on the level of effort required to effect the changes. All charges will be at Selima’s prevailing daily rate at the time of the request. See appendix 6.

Selima / Customer
Determine, maintain and interpret all Customer policies, procedures and financial regulations that effect application configuration. To include but not limited to:
Terms and Conditions
Costing Rules
Absence Policy
Pension regulations / Yes
Specify changes to application configuration. / Yes
Investigate and clarify requirements where necessary, and then provide an estimate for the cost, timing and impact (if any) of the change / Yes
Approve amendments required prior to work commencing. / Yes
Approval of acceptance testing / Yes
Authorise configuration changes to be applied to Live environment. / Yes
Implement configuration amendment in Live environment. / Yes
Sign off amendments as complete. / Yes

5.10Bulk Changes

Selima reserve the right to make additional charges over and above the agreed service charge dependant on the level of effort required to effect the bulk changes. All charges will be at Selima’s prevailing daily rate at the time of the request. (Items that we would consider chargeable are Restructuring/reorganisation within the Customer, changes to pay i.e. such as introduction of a new Pay & Rewards scheme, Transfer of Groups of employees to a different payroll).