“Strong Change Management Skills and
Communicating Payroll Issues for
Success”
Darrell Kozuch
Assistant Vice President, Human Resources
University of Virginia
434.924.4348
djk8q@virginia.edu
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Change
For most organizations, change is inevitable.
Because of this, you'll most likely be involved in
managing change at some point – be it a simple
change to the way your team deals with payroll
issues/complaints, or a major project to change
organizational practices, policies or strategy.
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Change Management
 is an approach to
transitioning
individuals, teams,
and organizations
to a desired future
state
 Change
management is a
systematic
approach to
dealing with
change, both from
the perspective of
an organization
and on the
individual level
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Easy Definition
Change – is the situational process
Transition – is the psychological process
people go through when dealing with change
Transformation – is the phase where people
are fully adjusted to the reality of change
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Transition
Stages of Transition:
Ending – letting go of the old
Neutral Zone – between the ending and
the new beginning
New Beginning – new status quo
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Change
Nothing
Changes
if Nothing Changes
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To successfully implement change
initiatives, Payroll organizational
leaders must identify the need for
change and communicate it
throughout the organization.
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What to Consider
 For change to happen, it helps if the organization
understands what is needed, what is changing and
what is really wanted.
 Convince people that change is necessary. This often
takes strong leadership and visible support from key
people within your organization. Managing change
isn't enough – you have to lead it.
 A clear vision can help everyone understand why
you're asking them to do something…
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What to Consider
 Your message will probably have strong competition
from other day-to-day communications within the
organization, so you need to communicate it
frequently and powerfully, and embed it within
everything that you do.
 Nothing motivates people more than success. Give
your organization a taste of victory early in the
change process.
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Communication
How you manage change and how you
communicate your payroll issues
powerfully impacts your operation, your
employees and your leadership team.
How to create an environment of good
communication along with some strong
change management techniques at your
organization
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What We Will Cover
 Who receives communication
 What Do Employees Expect
 Payroll Communication Strategies
 Communicating Incorrect Payments
 Tips for Written Communication
 Communicating Forms
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The Purpose of
communication is not to
just convey information but
to change behavior.
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So
what
needs to
change
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How We Communicate
What do we really need to do?
Connect
Connect
CONNECT
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Who receives Communications
 Is the information correctly targeted to the
Audience? = Executives, Managers,
Employees, Suppliers
 Is everyone who needs information receiving
it?
 Do they know how to use what they receive?
= Timeframe, WIIFM, behavior expected, how
to provide feedback
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Recent Conference I Attended
 Some examples of knowing the Audience.
NSF =
National Science Foundation
Circular A-21 =
Cost Accounting Standards
ONR =
Office of Naval Research
HHS =
Health & Human Service
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Many people search blindly for the “meaning
of life”. What they don’t seem to
understand is that life does not have
meaning through mere existence or
acquisition or fun. The meaning of life is
inherent in connections we make to others
through honor and obligation.
Author Unknown
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What to do differently with
regard to communication?
 More communications (more frequent).
 Begin communications sooner in the project.
 More face-to-face communications – do you feel that you rely too
heavily on email, not recognizing the importance of a personal
approach.
 More communication from executive sponsors and senior
managers.
 More about the impact of the change on employees – answering
the questions how will this affect me and what is in it for me.
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Communicating Change
 What is changing
 Who is affected
 What is the change
 Why make the change
 What is the impact
 When is it effective
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What Do Employees Expect
When We Communicate ?
 Courtesy
Greet enthusiastically
 Personal Attention
Use their name
 Reliability
Provide what you promise, be accurate and
timely
 Responsiveness
Respond promptly to needs and questions
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What Do Employees Expect
When We Communicate ?
 Knowledgeable Staff
Project confidence in what you are doing
Train & Empower Staff
Know your organization’s procedures and
policies
 Empathy
Show you care and want to help- respond that
you understand
 If you have to say “no”
Explain Why
Offer Alternatives
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Payroll Communication
Strategies
 Employee Orientations
• Partner with HR
• Videos
 New Hire Package
• Who to Contact
• Payroll Deadlines
• Pay Day Calendar
• Sick Leave and Vacation
 Staff Development Days
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Payroll Communication
Strategies
 Newsletter
• Payroll Articles and Information
• Meet the Staff
• Meet an Employee
• FAQ
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User Group Meetings
 Meeting Information
Next Meeting Date: May 14th
Location: Newcomb Hall: South Meeting Room
Time: 10 am
AGENDA
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Future Meeting Schedule:
June 18th, Newcomb Hall: South Meeting Room
August 20st, Newcomb Hall: South Meeting Room
September 17th, Newcomb Hall: South Meeting Room
October 15th, Newcomb Hall: Commonwealth Room
November 19th, Newcomb Hall: South Meeting Room
Meeting Minutes for 2010
January 28th
February 18th
March 18h
Meeting Minutes Archive
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Payroll Communication
Strategies
Flyers
• Paycheck stuffers
• Post in Lounges, Break Room, Lunch Rooms
• E-Mail
• Web sites
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Pay checks for the Month of March will be issued on
March 31 (during Spring Break) and will be available for pick
up in the Payroll Office which is located on the second floor of
the administration building.
Checks will be distributed between the hours of 8:30 a.m. and
1:30 p.m.
Checks and pay stubs will be mailed on the 31st if not picked
up by 1:30p.m. Direct deposit to your bank will be posted and
available without change.
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US PAY YOU
A reminder that due to the holidays, time cards for the
November/December time period must be received in
the payroll office no later than December 20th
We don’t want to be a Scrooge so remember!
Incomplete, unreadable, and incorrect timecards may
be delayed in processing until the next pay-period.
E-mail
Subject: Your Chance to Get Your W-2 Sooner!
Get your W-2 sooner! This year, the online W-2 will be available Jan. 16, 2015, two weeks
earlier than the paper version. If you don't elect to get your W-2 on line, your paper W-2
will not be mailed until Jan. 30, 2015.
Online W-2s are...
·
Available sooner than paper W-2s
·
Better for the environment - less paper
·
Safe, secure, and approved by the IRS
It's easy to choose the online version, but UVA needs your help. The IRS requires you to
opt out of getting a paper W-2. If you don't "say no" to the paper version, we are required
to keep sending that to you. For your rights and obligations regarding these
requirements, please visit http://www.hr.virginia.edu/go/online-w2.
You can opt out of paper two ways:
1. Follow the simple instructions at the end of this email to use Employee Self-Service to
opt in to an electronic W-2.
OR
2. Reply to this email with the following statement:
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Payroll Communication
Strategies
Create Incentives
 Prize can be minimal.
 Employees will remember
being recognized
 Announce the winner in
your next newsletter.
Who wouldn’t want an
additional payday……
Candy Bar!
Payroll Communication
Strategies
Web-Site:
• Employee Forms
• Payroll Policies and Procedures
• IRS/SSA Information
• Taxable Benefits
• Who to Contact
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University of Virginia
Payroll Information
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2015 Payroll Calendar
HRMS/Payroll System Availability Calendars
Time Management Form Example(PDF)
Generic Time Management Form
Direct Deposit Enrollment Form (PDF)
Understanding U.Va. Pay Practices (Classified and University Staff)
How to Prepare Pay Actions (In-Band Adjustments, Temporary Pay, and
Competitive Salary Offers)
Employee Recognition Policy
Special Pay Procedures: How to request special pay for a wage employee.
Procedures for Making Emergency (time sensitive) Payments to
International Visitors
Procedure for Making Payroll Payments Via Foreign Wire Transfers
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Understanding your Forms W-2
and 1042-S
Each year, employees will receive a Form W-2 that provides details of prior year earnings, taxes withheld
and other miscellaneous data (such as taxable cost of group term life insurance, cost of employer
sponsored health coverage and contributions to retirement or tax deferred savings plans.)
Employees and/or students that are foreign nationals, will receive a Form 1042-S. A Form 1042-S is a
year-end federal tax document given to a non-resident alien who received wages that were exempt from
federal and state tax withholding by a tax treaty and/or received a non-qualified taxable scholarship. In
certain instances, foreign nationals may receive both a W-2 Form AND a Form 1042-S for the same tax
year.
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Box 1: Wages, Tips, Other Compensation. This is your total taxable wages for federal income tax
purposes. This figure includes your regular wages, bonuses, and any taxable fringe benefits (such as
education benefits greater than $5,250), rewards and recognition, gifts, taxable moving expenses,
as well as the taxable value of group-term life insurance in excess of $50,000 (see box 12, below).
The amount in Box 1 will generally be the “YTD Gross” under the Summary section of your final
payslip, minus any pre-tax deductions such as health/dental/vision insurance, flexible spending
accounts and retirement and tax deferred savings plans, etc. The “YTD Gross” is the sum of the Year
to Date (YTD) amounts under Hours and Earnings.
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Box 2: Federal income tax withheld. This amount represents the total amount withheld from your
paycheck for federal income taxes.
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Box 3: Social Security Wages. This represents income subject to Social Security tax. There is a Social
Security wage base each year and once you earn up to that amount, you no longer will have
deductions for Social Security tax. Social Security wages are reduced by pre-tax deductions such as
health/dental/vision insurances, parking and flex spending but not reduced by your contributions to
a retirement plan (403b or 457.) The only applicable exceptions are University students working at
the University while enrolled at least half time and attending classes, as well as nonresident alien
employees visiting the U.S. for a limited period on F-1, J-1,
Communicating Incorrect
Payments
Incorrect Payment
Notification
 Notify Employee ASAP about any issues
that will affect their pay or benefits
•
Talk with them personally and follow up with
written notice
•
Meet in a private area and have your calls held
Incorrect Payments
Defuse Negative Emotions

Apologize sincerely if applicable
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Don’t assert blame
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Let employee know you are going to work with
them for a solution
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Respect Employee Situations
Incorrect Payments
Work on a Solution
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Start at the beginning and don’t assume they
understand payroll processes.
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Use understandable terms
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Ask questions to make sure they understand
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Involve the employee- what is their solution
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Be flexible and fair
Incorrect Payments
Follow Ups
 Use a buddy system to check your
corrections
 Review the situation to prevent the
problem from reoccurring.
Communication Tips
Dealing with Upset Employees
 In Person
• Focus the problem on a third point to take
away from a personal level.
 On the phone
• Calm their breathing
• Say “you are right” between their breaths
• If they are not right say “I understand”
Sample Letters to Employees
PAGES 5- 10
 Pay Adjustment Form
 Overpayment Notification (Term Employee)
 Overpayment-Action Letter (Term Employee)
 Overpayment Agreement (Current Employee)
 Formal Repayment Agreement
Written Communications Tips
• ALWAYS spell the names of people and companies
correctly
• Avoid slang words
• Try not to use abbreviations and symbols
• When using an acronym, always spell out first time used
(example: Fair Labor Standards Act (FLSA)
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Written Communication Tips
• Numbers should be expressed as words when the
number is less than 10 or is used to start a sentence (ex:
Two weeks ago, you were contacted…)
• The number 10, or anything greater than 10, should be
expressed as a figure (ex: There are 12 pay cycles .)
• Quotation marks should be placed around any directly
quoted speech or text and around titles of publications
• Keep sentences short
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Writing Effective Memos
 Message
Begin with one or two sentence
summary of the main thought or
message.
 Details
Add the specific reasons for the
message and requested action
 Evidence
Include any supporting material
that is essential
 Action
Clearly state what you want the
employee to do.
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Writing Effective Memos
• Make the bottom line the top line. The action
you want the reader to take should be spelled
out in the first paragraph
• Don't give too many whys. A reader can
probably only absorb six or seven reasons at
once
• Keep paragraphs short. Limit each paragraph to
five lines or less
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Communicating Forms
Inform employees of form changes
When possible use visuals
 Pay Slip, Paychecks, W-2’s and W-4’s
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NOTE
Every interaction is an
opportunity to “shine.”
You Choose
“ If you change the way you look at things,
the things you look at change ”
Wayne Dyer
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Thank You For Attending!
© 2009, API Fund for Payroll Education, Inc., San Antonio, TX