With the current uncertainty around COVID-19, is your organization prepared to ensure payroll continuity? We have seen many instances where payrolls have been impacted by major events like a fire, natural disaster, a weather event or health events such as SARS, H1N1 and now COVID-19. With many Canadians living paycheque to paycheque, ensuring payroll continuity is more crucial than ever to the very financial survival of employees.
Payroll is mission critical and there is arguably no more crucial function within an organization than getting employees paid accurately and on time. Human resources, benefits, accounting and finance functions, although important, do not have the urgency and time sensitivity that payroll does in a crisis.
The Canadian Payroll Association creates many free online resources, including their Payroll Continuity Payroll Best Practice Guidelines. The guideline includes planning details, a Payroll Continuity Plan Checklist, and a test your knowledge section. You can download your complimentary copy of the Association’s Payroll Continuity Payroll Best Practice Guidelines HERE.
PREVIEW: The Payroll Continuity Plan (PCP) Checklist
- Create the plan to identify key business process as it relates to HR, Payroll Systems
- Document time collection and management process
- Document job data collection and approvals
- Create remittance schedules and processes
- Document direct deposit (cheque) process
- Document termination procedures, including Record of Employment (ROE)
- Document post payroll reports – i.e. general ledger, accruals
- Develop third party payments reports
- Develop remote payroll processing capabilities (include offsite arrangements)
- Create recovery data on USB/flash drives/cloud storage
- Develop areas of responsibilities (who does what)
- Develop the Payroll Business Continuity Planning (PCP) toolkit
- Create list of external key contacts, for example, financial institution, Service Canada (ROE Web), Canada Revenue Agency
- Create list of internal key contacts, for example, human resources, IT, finance, leadership in key roles,
- Create ‘Communication Plan’
- Create ‘Quick Response Guide’
- Obtain authorization from senior leadership and key stakeholders
- Assign an owner to the plan, also responsible to implement testing of PCP
This checklist and the Downloadable Payroll Continuity Best Practice Guidelines document have been made available to the public for free by the Canadian Payroll Association.