State’s Payroll Modernization Readies for ‘Group 2’ Rollout

The state is rolling out payroll modernization to departments in three groups.

The State of Hawaii’s Enterprise Payroll Modernization project is one of the state’s most ambitious initiatives. Led by the Department of Accounting and General Services’ Accounting Division, in partnership with the Office of Enterprise Technology Services (ETS), the project is known as the “HawaiiPay” project for short and aims to modernize payroll systems to provide greater functionality and efficiencies in serving more than 75,000 full- and part-time employees statewide, according to ETS.


THG recently checked in with the project to get an update:


Why is it important to modernize the state’s payroll system?

The HawaiiPay project is helping the state to replace its mainframe payroll system that is more than 50 years old with a single integrated software system called PeopleSoft. The new payroll system will enable payroll offices of state jurisdictions, departments and agencies to reduce the manual, paper-intensive process by using a modern online application. For employees, it means they will be able to access Online Payroll Employee Self Service functionality to:

  • Access pay statements
  • Update payroll address
  • Update federal and state tax forms
  • Manage direct deposit accounts


Are there any benefits to tax-payers?

The HawaiiPay project represents a significant opportunity to further transform the culture of government to embrace and accelerate the adoption of more efficient, less paper-dependent ways of doing business.


Are retired employees affected by this new system?

No, retirees receive their pension through the State of Hawaii Employees’ Retirement System (ERS). The ERS is completely separate from the state employee payroll system. As a retiree, an individual’s direct deposit information does not need to be updated or reentered as a result of the implementation of the new payroll system.


Who is involved in the HawaiiPay project?

The HawaiiPay project team is comprised of state resources working closely together with consultants from CherryRoad Technologies and Pacxa. The new payroll system will cover more than 75,000 employees statewide from all branches of Hawaii state government: Executive (including the Department of Education, University of Hawaii, and Hawaii Health Systems Corporation), Judiciary and Legislative, as well as the Office of Hawaiian Affairs.


As processes are modernized, does that mean people will lose their jobs?

No. There are no plans to reduce the workforce. Some job functions may be slightly modified to align with updated business processes inherent in the new software, providing enhanced tools and functionality for employees.


What has been accomplished to-date?

The state announced in May that it had rolled out the new system to the first of three groups of departments and agencies. Group 1 consisted of the Department of Accounting and General Services and the Department of Human Resources Development.

The second group will begin migration to the new system beginning in July, with the first payroll payments dispersed on the new system in August. Group 2 consists of employees in the Judiciary, Legislature, Office of Hawaiian Affairs, and several Executive Branch departments including: the Departments of Agriculture; Attorney General; Budget and Finance; Business, Economic Development and Tourism; Commerce and Consumer Affairs; Defense; Hawaiian Home Lands; Health; Human Services; Labor and Industrial Relations; Land and Natural Resources; Public Safety; Taxation; and Transportation. Also in Group 2 are the Offices of the Governor and Lt. Governor, Hawaii Health Systems Corporation, and Hawaii State Public Library System.


Group 3, which currently includes the Department of Education (the largest department by number of employees) and the University of Hawaii, are scheduled for migration is scheduled for later this year.

Upon completion of all groups, plans are to begin modernization of time and attendance systems.


How can interested citizens stay up to date on the progress of the project?

Regular updates are provided via the project’s website:

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