Case Study BBAW: Payroll accounting in the public sector

In addition to other sectors, FPA has specialised in payroll accounting in the public sector. For many years, we have been handling payroll accounting for the Berlin-Brandenburg Academy of Sciences and Humanities (BBAW) in accordance with the TV-L and TVöD pay scales (collective labour agreements for the public sector in Germany). In addition to preparing the monthly payroll statements in accordance with TV-L and TVöD, we have also taken over the administration of special payments such as holiday pay and Christmas bonuses for the BBAW. In doing so, we had to take into account a large number of complex pay scale regulations and develop customised solutions for special cases.

The BBAW is an interdisciplinary research institution with over 300 years of tradition. It supports scientists, organises numerous events and actively seeks dialogue with the public in order to strengthen the exchange between science and society.

‘The partnership with FPA has been a decisive factor in helping us to successfully organise our payroll accounting for the public sector.’

– Maria Berg, Head of HR BAW –

Challenges in the public sector

The BBAW was facing a major problem. The manual processing of payroll accounting for its 370 employees was time-consuming, error-prone and caused high costs. In addition, changes in legislation and the large number of collective labour agreements and special regulations in the public sector made efficient processing difficult.

At the start of the project, the BBAW had to integrate a new institute that was subject to the specific collective bargaining regulations and complex requirements of the collective agreement for the public service (TVöD) and the collective agreement for the public service of the federal states of Berlin (TV-L Berlin). The specific requirements of payroll accounting in accordance with these collective agreements were unknown to the Academy, and its own internal administration lacked sufficient prior experience in this specialised area of payroll accounting. A wide variety of collective agreements apply to public organisations. These range from the TVöD to the collective agreements of the federal states, the TV utility companies and the collective agreements of social organisations such as Caritas or the German Red Cross (DRK). All collective agreements for the public sector are regularly updated, which often means a massive training effort for an internal department. Added to this is the need to prepare accounts for different pay scale groups and employment relationships in accordance with the applicable pay scale.

At the same time, much stricter data protection regulations must be observed in the public sector than in the private sector. The reason for the stricter regulations and higher transparency requirements is public funding and the resulting special responsibility of public employers. In view of the high sensitivity of personal data in this area, comprehensive data protection is a must. The FPA adheres to the highest security standards and fulfils all legal data protection requirements in this regard.

An additional challenge particular to the BBAW and public institutions was the inadequate and non-digital state of data and the need to migrate existing employee data into the software system. At the start of the project, around 370 employees had to be entered manually in DATEV LODAS, which formed the data basis for a comprehensive system adaptation of the payroll accounting programme.

Project takeover by FPA

As specialists for payroll accounting in the public sector, we were able to provide BBAW with the necessary expertise and resources to handle this area efficiently and reliably. The collaboration between a traditional business academy and a modern service company may seem unusual at first glance. However, this combination proved to be extremely useful. While the BBAW shone with its in-depth knowledge of science and research, the FPA contributed its expertise in the complex world of figures and laws. FPA’s experts were happy to take responsibility and leadership for both the client’s payroll and the basic set-up of BBAW’s payroll process.

Payroll accounting for BBAW was a challenging task that required customised solutions. We analysed the existing processes together with the client and developed a tailor-made solution that met both the legal requirements and the specific needs of BBAW. By implementing a modern software solution and automating many processes, we were able to significantly increase efficiency and minimise sources of error.

In the course of this, 370 employee files were manually transferred to the DATEV LODAS programme by us in a very short time. This now digital database forms the basis for BBAW’s highly efficient accounting process. Together, we were able to start our collaboration within a ‘clean’ DATEV payroll accounting system with bookable documents and clear cost centres, which forms the basis for our successful partnership today.

With our deep expertise in public sector payroll and close communication with the client, especially during the initialisation phase, we were able to gain valuable insights into existing processes and past payrolls. This collaboration enabled both us and the BBAW team to build up extensive expertise and overcome the challenges together.

Outsourcing as a solution for payroll accounting in the public sector

Thanks to the collaboration with the FPA, the BBAW was able to make significant progress. There were fewer payroll corrections from previous months, as the new payroll processes in DATEV LODAS and the expertise gained helped to minimise errors. The introduction of ‘DATEV Arbeitnehmer online’ made digital payroll accounting considerably easier and reduced the effort required for the manual distribution of payslips, which saved both time and resources. DATEV Arbeitnehmer online is aimed at employees and offers a variety of functions that make it easier to access personal payslips and other work-related documents. BBAW employees particularly appreciate the transparency and traceability of the statements and the ability to view their data online at any time.

Although the BBAW is not a traditional company with measurable financial success, the optimisation of payroll accounting has led to increased efficiency in the administrative area. The Academy is now better able to concentrate on its core task of carrying out research projects, while the FPA manages payroll accounting for the public sector professionally and reliably. This positive outcome shows that preconceptions about payroll services are often just misunderstandings.

Dank der Zusammenarbeit mit der FPA konnte die BBAW signifikante Fortschritte erzielen. Es traten weniger Abrechnungskorrekturen der Vormonate auf, da die neuen Abrechnungsprozesse im DATEV LODAS und das gewonnene Fachwissen halfen, Fehler zu minimieren. Die Einführung von “DATEV Arbeitnehmer online” erleichterte die digitale Lohnabrechnung erheblich und reduzierte den Aufwand für die manuelle Verteilung von Lohnzetteln, was sowohl Zeit als auch Ressourcen sparte. DATEV Arbeitnehmer online richtet sich an Arbeitnehmer und bietet eine Vielzahl von Funktionen, die den Zugriff auf persönliche Lohn- und Gehaltsabrechnungen sowie andere arbeitsbezogene Dokumente erleichtern. Die Mitarbeiter der BBAW schätzen besonders die Transparenz und Nachvollziehbarkeit der Abrechnungen sowie die Möglichkeit, ihre Daten jederzeit online einzusehen.

Obwohl die BBAW kein traditionelles Unternehmen mit messbaren finanziellen Erfolgen ist, führte die Optimierung der Entgeltabrechnung zu einer gesteigerten Effizienz im administrativen Bereich. Die Akademie kann sich heute besser auf ihre Kernaufgabe, die Durchführung von Forschungsprojekten, konzentrieren, während die FPA die Entgeltabrechnung für den öffentlichen Dienst professionell und zuverlässig verwaltet. Diese positive Bilanz zeigt, dass Vorurteile gegenüber Payroll Services häufig nur Missverständnisse sind.

Outsourcing as a solution for payroll accounting in the public sector

Joint prospects for the future

The successful cooperation between the BBAW and the FPA has already been extended by five years. In future, the BBAW plans to transfer the ZVK reports to the pension fund to the FPA as well. This will enable a comprehensive takeover of administrative tasks in the area of company pension schemes (BAV) for the public sector and thus generate further efficiency gains in the Academy’s administration.

The partnership with the FPA has played a decisive role in helping the BBAW to successfully organise its payroll accounting for the public sector. FPA’s ongoing support and expertise are crucial for the Academy’s future projects and provide the necessary stability in a constantly changing environment.

Our cooperation with BBAW went far beyond pure payroll accounting. We acted as a trustworthy partner and supported BBAW in all matters relating to payroll accounting. Through regular coordination and transparent communication, we were able to build a long-term and successful partnership.

Joint prospects for the future

Conclusion: Efficient payroll accounting for the public sector

The successful collaboration between BBAW and FPA shows how an innovative solution and close partnership can make public sector payroll more efficient, accurate and transparent. For us, this successful collaboration is proof that even complex tasks such as public sector payroll can be solved efficiently and reliably through close partnership and the use of modern technology. We look forward to continuing this successful collaboration and to tackling new challenges together.

Do you need further information or support in optimising your payroll accounting in the public sector? Get in touch with us!

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