Understanding the Flow from Human Resources Management to US and Canadian Payroll

       Human Resources Management is now free in Microsoft Dynamics GP 2013! This product is a great tracking tool that will help you manage and retain detailed information on your current and prospective employees. With that said, there are two key points that I wanted to share in order to give you a better understanding of how Human Resources Management incorporates with US and Canadian Payroll benefits and deductions.
 1. Human Resources flows into US and Canadian Payroll – Not the other way around.
    Please keep in mind that Human Resources is an ‘add-on’ to the Payroll module, so the data is designed to flow from Human Resources to Payroll.  The data is not designed to flow ‘backwards’ from Payroll to Human Resources. For this reason, the ‘reconcile’ utilities were designed – to roll some existing payroll setup data back to Human Resources.  These reconcile options are meant to be a one-time process at the time you initially set up Human Resources, and not meant to run in a regular basis.  After Human Resources is installed and implemented, users should be starting on the Human Resources side first, and letting the information flow to Payroll.  
    If you accidentally go to the Payroll side first and try to change an amount specific to an employee, you will get a prompt that reminds you that Human Resources is Registered and that you should save the changes in Human Resources first, or run the update benefit Enrollment Reconcile. If you receive this message, we recommend that you discard the changes, and enter them directly into Human Resources. We do not recommend relying on the reconcile utilities after initial setup is complete, because as I mentioned, they are designed specifically for initial setup and may not bring over all of the required information for Human Resources. Please make sure that your business process allows for your users to enter changes in Human Resources first, as Human Resources will roll down the changes to Payroll for you. (Not the other way around.)
2. Payroll Employee Classes should not contain Benefits and Deductions.
    Class IDs function specifically with US and Canadian Payroll, not Human Resources. Human Resources is not a fan of Employee Classes in Payroll that contain benefits and deductions, and the reconcile utilities are not designed to function with the benefit/deduction that are contained within Payroll classes. In order for the Human Resources Update Enrollment reconcile to properly enroll your employee’s in Human Resources, employees should not be assigned to a Class that has benefit/deduction on the payroll side. Instead a separate benefit/deduction should be made for each class or section of employees, and this should be assigned to them outside of the class. (Please see example below)
    Rather than having 3 classes in Payroll with a single INS code assigned to employees at different rates, you would create 3 INS codes in Human Resources and not include them in your employee class.

     Employees 001 through 099 would be assigned INS1 at a rate of $50
     Employees 100 through 199 would be assigned INS2 at a rate of $75
     Employees 200 through 299 would be assigned INS3 at a rate of $90

     When a rate is changed for the employees with INS2 to $80 you would mass update the employees 100-199 with the new rate by changing the amount in Human Resources setup to $80, then rolling down the changes.  This will update all of these employees assigned to that rate from the INS2 code with the new amount.  You can still edit a single employee’s amount at any time in Human Resources as well.
     I hope you find the material above proves useful as you prepare to make your decision to implement Human Resources with your US and Canadian Payroll installs.  I also recommend checking out more information on the Affordable Health Care Act features in Human Resources included in the Year End Update.
Isaac Olson | Microsoft Dynamics GP