HR Acquisition Integration Checklist

In-depth HR Acquisition Integration Checklist that covers compensation, retention, deferred compensation, severance, health insurance, COBRA, LTD, STD,  401(k), pension, communications, recruiting, data conversion, organization structure, workers compensation, training & development, educational assistance, travel & expense, plus 7 additional areas.

Compensation

• Map Acquired Company's roles to Acquiring Company's roles 
• Communicate changes to salary grade and/or pay adjustments
• Determine if and what level of salary structure detail will be provided
• Exec Compensation: new titles and pay

Retention

• Identify Acquired Company's Stay Bonus Candidates
• Execute Acquired Company's Stay Bonus Agreements
• Track Acquired Company's Stay Bonus Agreements
• Process Acquired Company's Stay Bonus Payments

Deferred Compensation

• Recordkeeping conversion from Acquired Company's Plan to Acquiring Company's Plan
• Communicate any plan changes due to integration
• Communicate plan eligibility and provisions in advance of enrollment period 
• If needed, minimal required changes to Deferred Compensation contracts
• Key employee determination process and compare to ensure appropriate application this year.

Severance

• Process Acquired Company's Tier I & Tier II severance requirements
• Develop Severance Tracking Process to ensure Acquired Company's severance plan is adhered to per agreement through 12/31
• Ensure Acquiring Company's plans don't require amendments to prevent Acquired Company's participation Day 1
• Determine impact to Tier I & Tier II Severance for Acquiring Company's employees

Health and Rx

• Ensure Acquired Company's employees receive credit for co-pays and deductibles on Acquiring Company's Plan
• Ensure Acquiring Company's plans don't require amendments to prevent Acquired Company's participation Day 1
• Evaluate amendments needed for Acquired Company's medical trust account used to fund expenses
• Notify Acquired Company's medical trust administrator of contract termination effective April
• Terminate Acquired Company's medical trust
• Convert Acquired Company's retirees into Acquiring Company's Plan Terminate Acquired Company's retiree plan

Dental

• Ensure Acquired Company's employees receive credit for co-pays and deductibles on Acquiring Company's Plan
• Notify Acquired Company's vendor of contract termination effective 3/1
• Ensure Acquiring Company's plans don't require amendments to prevent Acquired Company's participation Day 1

Employee Assistance Program

• Ensure Acquiring Company's plans don't require amendments to prevent Acquired Company's participation Day 1
• Identify Existing Acquired Company month-end metrics and reports to review

COBRA

• Identify COBRA (medical, dental & flex) participants at 6/30 (terminations and LOA/STD)
• Notify CONEXIS of COBRA participants transitioning to Acquiring Company's COBRA effective 7/1
• Notify Acquired Company's vendor of contract termination effective 1/30

Life

• Notify Acquired Company's vendor of contract termination effective 1/30
• Notify Aetna of intent to waive LOI for Acquired Company's employees as done for new hires
• Ensure Acquiring Company's plans don't require amendments to prevent Acquired Company's participation Day 1
• Convert Acquired Company's retirees into Acquiring Company's Plan
• Terminate Acquired Company's retiree life plan

Health Savings Account

• Notify Acquired Company's vendor of contract termination effective 1/30
• Determine whether Acquired Company's employees will be required to take HSA for Acquiring Company's funding
• Ensure Acquiring Company's plans don't require amendments to prevent Acquired Company's participation Day 1
• Send YTD HSA deferrals to payroll for limits

Long-Term Disability

• Notify Acquired Company's vendor of contract termination effective 1/30
• Notify intent to waive LOI for Acquired Company's employees as done for new hires
• Discuss LTD transition process for Acquired Company's employees on STD who will need to move to Acquired Company's LTD carrier
• Ensure Acquiring Company's plans don't require amendments to prevent Acquired Company's participation Day 1

Short-Term Disability

• Identify all employees on STD at 6/30
• Transition employees on STD to Aon Hewitt
• Ensure Acquiring Company's plans don't require amendments to prevent Acquired Company's participation Day 1

401(k)

• Amend Acquired Company's plan to add 5% non-matching contribution for earnings after closing
• Work with Acquired Company's payroll to establish 5% non-matching contribution for earnings after closing
• Acquired Company's Vanguard will need to set up new contribution type to receive 5% non-matching
• Establish separate vesting schedule for 5% that is different than Acquired Company's match for Acquired Company's Vanguard plan
• Amend Acquired Company's 401(k) feed to include all Acquired Company's employees for 5% non- matching contribution for earnings after closing
• YTD "YE" Acquired Company's match through mid-year
• Notify Acquired Company's vendor of contract termination
• Amend Acquired Company's plan to freeze plan for new loans
• Establish loan repayments provisions with Acquiring Company's payroll
• Merge Acquired Company's 401(k) with Acquiring Company's plan
• Establish process with Vanguard to continue repayments on Acquired Company's plan loans after mid- year
• Ensure Acquiring Company's plans don't require amendments to prevent Acquired Company's participation Day 1
• Amend Acquired Company's trust agreement as needed to reflect transition changes
• Send YTD 401(k) deferrals to payroll for limits
• Amend/Create Acquired Company's excess (NQP) plan for 5% non-matching contribution for earnings after closing

Pension

• Amend Acquired Company's plan to cease future accrual at closing
• Evaluate termination options for Acquired Company's plan and administrator
• Develop & distribute 204(h) notice to Acquired Company's participants
• Notify Acquired Company's vendor of contract termination effective TBD
• Determine transition of Acquired Company's pension trust assets
• Ensure Acquiring Company's plans don't require amendments to prevent Acquired Company's participation Day 1
• Amend Acquired Company's trust agreement

Leave of Absence

• Identify employees on LOA (non-STD & Work Comp)
• Determine treatment of employees at conversion to Acquiring Company's systems
• Understand Acquired Company's processes for complying with sick ordinances and determine if any changes are required

Communication Plans

• Notify Acquired Company's vendor of contract termination effective 2/29
• Notify Aetna of intent to waive LOI for Acquired Company's employees as done for new hires
• Ensure Acquiring Company's plans don't require amendments to prevent Acquired Company's participation Day 1
• Convert Acquired Company's retirees into Acquiring Company's Plan
• Terminate Acquired Company's retiree life plan

Communications Day 1 Topics

• Pay & Benefits Overview for salaried employees
• Pay & Benefits Overview for hourly employees
• Open enrollment dates
• Acquirer’s badges for integration team and key employees
• Acquiring Company's 401(k) doesn't offer Roth

Communications Day 2 Topics

• Inventory system to use on Day 1
• Open enrollment materials for salaried employees
• Open enrollment materials for hourly employees
• Details regarding 401(k) conversion
• Incentive plans

Drug Testing

• Convert drug testing policy and program for raw materials employees only (eliminate plan for salaried employees)
• Enter Acquired Company's random drug testing sites into PeopleSoft with % tested information and frequency
• Enter Acquired Company's DOT employees into PeopleSoft with % tested information and frequency

Recruiting

• Complete Acquired Company's Affirmative Action Plan from standard procedures in ADP & Lawson
• Create link to Acquired Company's recruiting site from Acquiring Company's and vice versa so employees have access to all jobs posted
• Determine timeline to have all open requisitions in one system
• Transfer Acquired Company's resume database
• Communicate plan of when Acquired Company will begin using Acquirer offer letters, drug testing policy and background vendors
• Ensure Acquired Company's employees are included in EEO-1 and Vets 4212 reporting due in September
• Upload historical Acquired Company's offer letters into Acquiring Company's system
• Gather all Acquired Company's applicant tracking for last year to submit to government at year end
• Determine if we need to collect copies of Acquired Company's job descriptions for records

Data Conversion

• Define data mapping requirements for Day 2 conversion of HR and YTD payroll data
• Determine treatment of historical data
• Ensure benefits (401(k), HSA, Flex) with annual IRS maximums are properly converted to avoid excess contributions
• Convert current retirees enrolled in medical/life benefits that will need to be converted
• Determine Acquired Company's I-9's

Payroll Timekeeping

• Collect Acquired Company's EINs
• Gather pay rules for production employees and set up in ERP
• Salaried: 1st Acquiring Company's pay date is 6/30
• Hourly: 1st Acquiring Company's pay date is 6/28
• Enter exception time for acquired company's salaried non-exempt
• Set-up Acquired Company's garnishments in Acquiring Company
• Develop/Deliver PeopleSoft T&L Training
• Set-up so acquired company's employees receive 2 W2's
• Identify and apply for state/unemployment #'s
• Determine if we will suppress all pay advices for Day 2
• Gather information for additional pays, deductions, direct deposit, and W4's.

Organization Structure

• Define Acquired Co. department structure
• Define Acquired Co. locations/tax locations
• Confirm Acquired Company's salaried employees will map to existing Acquiring Company's benefit programs
• Confirm that all Acquired Company's production employees will be mapped to one benefit programs
• Identify Acquired Company's employees who work from home
• Identify process and frequency to sync Lawson/PeopleSoft data
• Identify Acquired Company's employees with prior Acquiring Company's service
• Communicate time period for Acquired Company's employees to enroll in Acquiring Company's benefits

Immigration

• Identify Acquired Company's employees who are on work VISA
• Ensure that former Acquired Company's employees have appropriate documentation to work for Acquiring Company
• Relocate payroll file
• Transition existing relocation files

Workers Compensation

• Identify all Acquired Company's employees on workers compensation
• Notify Acquired Company's vendor of contract termination for new claims after 1/30
• Establish process for consolidated reporting and compliance from Day 1 to Day 2
• Determine timing of transition and administration of active claims at June 30
• Determine timing of transition of closed Acquired Company's claims

Compliance

• Evaluate transition implications of ACA reporting
• Evaluate implications of DB freeze on reporting requirements
• Evaluate NDT for qualified retirement plans - who to perform
• Coordinate qualified plan audits
• Coordinate 5500 filings
• Coordinate SEC filings
• Coordinate tax reporting
• Coordinate PBGC filing
• Coordinate medical trust account filings at termination

Safety

• Implement drug testing

Policies

• Ensure Acquired Company's employees sign Employment Agreement within 3 days of closing
• Review key Acquired Company's HR policies to ensure alignment and change if necessary for Day 1
• Communicate Acquiring Company's HR policies as part of Day 2 Open Enrollment activities

Labor Relations

• Schedule union avoidance training for Acquired Company's managers

IT Help Desk

• Identify process to handle calls between Acquired Company and Acquiring Company for Day 1
• Build knowledge base for support

Educational Assistance

• Identify Acquired Company's employees active on educational assistance. Handle by exception basis/manager approval going forward

Travel & Expense

• Identify Acquired Company's employees who require P&T cards
• Implement P&T cards for Acquired Company's employees
• Terminate Acquired Company's P&T cards
• Identify process to pay any outstanding travel expenses incurred using Acquired Company's travel policy
• Identify any air/hotel/car contracts