Payroll Systems Upgrade Project Charter

Learn about the Payroll Systems Upgrade project with this interactive guide! Click on each section to explore key details about this initiative to modernize payroll for a global workforce.

Project Title & Description

Project Title: Upgrade the Payroll Systems
We're a multinational organization with over 20,000 employees. This project aims to replace or upgrade our payroll systems to efficiently compensate our diverse workforce, who work across multiple locations globally, business units, and schedules. Current systems are not integrated, inflexible, and require significant manual effort, making corporate reporting costly.

Project Manager & Authority

Project Manager: Isaiah Higgins leads this project with authority to request team members and secure resources. He has signature authority up to $10,000.
Assistant: Ashley Chan supports as assistant project manager.

Business Case

Current payroll costs $2.4 million annually, plus inefficiencies. The industry average is $100 per employee per year ($2 million total). Upgrading will save $400,000 per year with a three-year payback period, justifying the project. See the detailed business case for more.

Resources Preassigned

The corporate payroll group and local payroll specialists are key contributors. A senior team of business analysts, architects, and designers is assigned for research. Procurement and legal teams will handle contracts. English is the primary language, with local language experts ensuring compliance.

Key Stakeholders

Stakeholders include all employees, corporate management, legal, procurement, payroll administrators, government taxing authorities, benefit providers, and payroll solution suppliers. A detailed list is attached to the charter.

Stakeholder Requirements
Req. Number High-Level Requirements
R1 Pay employees based on agreed rate/salary and schedule.
R2 Adhere to country-specific tax and payment regulations.
R3 Comply with local government tax requirements.
R4 Provide employee benefits as approved by the Board.
R5 Collect benefit premium payments from employee pay.
R6 Keep employee data confidential, secure, and archived per legal requirements.
Product Description & Deliverables

Deliver one or more payroll systems at or below $100/employee/year. Key features:

  • Direct deposit globally with email/text notifications.
  • Employee self-service website for updating personal details.
  • Consolidated payroll management and government reporting.
High-Level Assumptions
  • Payroll applications support all employee countries.
  • Industry cost of $100/employee/year is accurate.
  • Employees report residence in one country for taxes.
  • Internal resources are available for the project.
High-Level Constraints
  • Comply with international payroll rules and global deposits.
  • Meet country-specific security standards.
  • Complete year-end tax reporting in implementation year.
  • Due by October 6, 20XX.
  • Budget: $1,200,000.
Measurable Project Objectives

Reduce costs by $400,000 annually and boost productivity.

  • Cut payroll costs by 15% in two years by reducing manual processes.
  • Shorten onboarding from 5 to 2 business days in 18 months.
Project Approval Requirements

Approvals needed:

  • Software purchase (VP of Operations).
  • Vendor selection (Director of HR).
  • System design (Director of HR).
  • Global rollout plan (VP of Operations).
Overall Project Risks
  • Payroll errors during implementation (High impact).
  • Tax compliance issues due to diverse regulations (High impact).
  • Unreliable vendor selection risk (High impact).
Project Exit Criteria
  • Deliver a system meeting objectives and deliverables within budget.
  • Recommend termination if cost savings are unachievable.
  • Propose a new solution with a business case if better alternatives arise.
Project Sponsors

Muhammad Chauhan, Executive Vice President
Jessica Bouchard, Director of Human Resources