TO:Pastors and Pastoral Coordinators

FROM:Tim Thomas

DATE:May 6, 2013

RE:Update on Payroll Rollout and Implementation

The May 1, 2013 Secretary/Bookkeeper workshop had over 100 participants. Fr. Dobrzenski and Msgr. Browne gave a welcome and offered a prayer. Six pastors; Msgr Michael Steber, Fr. Darryl Pepin, Fr. Michael Jacobus, Fr. Greg Heikkala, Fr. Ben Paris and Fr. Ben Hasse were also present. The day began with a brief history of the overall statewide payroll project which included all of the Bishops from the dioceses in Michigan and staff from Michigan Catholic Conference (MCC). The Common Payroll Vendor Project began with initial discussions in June 2011. It was completed with the process for the selection of the vendor Paycor, which took approximately 8 months, and was approved in March 2013.

Hope Reilly, the vice president for Benefits and Information Technology from MCC offered additional information on the payroll process and the integration of the payroll data with the employee benefits information at MCC. Hope stated that MCC has found a vendor to update the benefits software at MCC, and will begin implementation this fall. This is a year earlier than originally planned. She also discussed future technology at MCC and moving toward a paperless environment.

The payroll vendor, Paycor, had three representatives at the workshop. They explained and demonstrated the internet based payroll system and the implementation process. They stated that training can take place via the web and telephone or hands on at a local site, which ever is preferable.

There was an opportunity for everyone to ask questions and share their concerns. It was very informative. The legal issues surrounding payroll, and current practices at parishes, some of which are not in line legally or with diocesan policy, were discussed. The complex reporting requirements concerning the new health care laws that will affect payroll reporting in the future, in particular ObamaCare, can be very complex. Data security was questioned by the attendees. Paycor representatives stated that they have a high level of encryption and have never had an issue related to security since the company’s inception in 1990.

It was noted by Hope Reilly from MCC, that the implementation of these programs will provide less benefit, from a cost savings standpoint, to smaller parishes. But everyone needs to be included to gain efficiencies especially regarding the benefits platform through MCC. Parishes can maintain their current payroll schedule if it is monthly, semi-monthly or biweekly. It was noted by several people that cash flow at the parish may be an issue for the timing of the payments of payroll and related taxes due to the fact that many parishes have weekly collections that fluctuate from week to week.

In consideration of these two issues, if a pastor feels that this is a burden on the staff to perform the payroll through Paycor, he may request that diocesan staff perform this payroll function for the parish. Also if a parish has cash flow issues related to the timing of the payroll and tax payments, the diocese will consider offering assistance. If you foresee having the above difficulties with Paycor, then please contact me so that we can explore the options.

Michigan Catholic Conference and all diocesan offices throughout Michigan will begin payroll implementation in July 2013. Archbishop Sample and Marquette Diocesan Finance Council directed that all parishes and schools have this process implemented by December 31, 2013, and that the Diocese of Marquette pay Paycor’s fee until June 2014. After that ongoing costs will be approximately $10 per pay period plus $1.15 per employee. All paychecks will be directly deposited into employees’ accounts.

MCC will be paying for all conversion costs to the Paycor and is hoping to move up our diocesan timeline for implementation to be completed by September 2013 This will coincide with their benefits software implementation and also avoid winter travel.

I am asking for your help and cooperation as we move forward. Please complete the Implementation Survey with your bookkeeper and send it in to Paycor. If you have any questions, please contact Carol Parker or me.