The instructions contained in this IRM apply to statistics on all work input by data entry operators working on the following systems:

The National Incentive Pay Charter contains provisions that describe the methodology and procedures for setting quantity and quality targets and determining the savings to be paid to employees. See Exhibit 3.30.165-16. for a complete copy of the Charter. See the Charter provisions for possible program exclusion of operators on RPS II equipment.

Employees covered by CEIP in some Submission Processing centers are assigned to the Receipt and Control Operation and to the Data Conversion Operation. The function code used by operators determines, if work was performed as original entry (OE) or key verification (KV). Refer to IRM 3.30.165.3.7(4) for valid function codes.

The Local Incentive Pay Committee in each Submission Processing center must become familiar with the security standards contained in IRM 1.16.12, Facility and Property Protection, and establish procedures to ensure adherence to them. All Service employees are responsible for taking required precautions in providing security for the documents, information, and property that they handle in performing official duties. The members of the LIPC must take the same precautions in handling information pertaining to data entry employees taken with tax returns and return information.

The CEIP system prescribed by the National Incentive Pay Charter is designed to motivate data entry operators to improve their performance and to reward those whose improved performance generates savings for the Service.

The Charter provides that data entry operators may earn incentive pay only after they have exceeded the target for quantity and met or exceeded the target for quality. Targets will be provided to the employees before beginning work on each program.

The Incentive Pay System distinguishes the variety of input systems by establishing target rates using the combination of program and function code. ISRP and RPS operator statistics are obtained at system shutdown. The IPS programs for processing operator statistics keep the ISRP, REI, and SCAN-OPTICS operator statistics separate to ensure that the proper function code is used in accessing the standards.

The IPS pays 50 percent of the salary equivalent of production hours saved when an operator exceeds the quantity target and meets or exceeds the quality target. The production hours saved equal the number of hours it takes to complete an operator’s work. The rate must exceed the target rate minus the number of hours it would have taken for an operator, working at the quantity target rate, to complete his or her work. Payout is dependent on two conditions:

Since an operator’s actual production rate cannot be determined until the work is completed, the payout amount for this component is variable and cannot be determined in advance. The Payout on this "quantity" component is based on the operator’s actual production rate, which must exceed the target production rate.

A uniform Quality Bonus system is utilized nationwide as outlined in the Charter. The quality component is based on a higher quality of work than required to trigger eligibility for quantity incentive pay. Payout on this component is contingent on the operator meeting or exceeding the quality target rate, provided that an employee has met the quantity target.

The CEIP program goal is to ensure that equal and balanced emphasis is given to both quantity and quality in the incentive pay program. It has been endorsed by the Service and the National Treasury Employees Union (NTEU). Representatives from each organization jointly authored the National Incentive Pay Charter under the direction of a National Incentive Pay Committee (NIPC).

Based on the changes to the quality review process as cited in the NTEU and IRS Total Evaluation Performance System (TEPS) Agreement, sampling for work deemed as High Quality work (HQW) programs requires a different process.

Managers or management officials in Data Conversion and Receipt and Control Operations will prepare documentation (Form 3926 or documentation for IDRS processing) for input to the Incentive Pay System for employee’s HQW Programs until systemic changes are made to IPS. For an employee’s major HQW program (HQW program with the most volume and/or hours), a Form 3926 must be input reflecting a volume of one document reviewed with no errors for each IPS payout period.

The manual input of Form 3926 for an employee’s major HQW Program data, combined with Individual Quality Review (IQR) data for the employee’s major HQW Program Cluster (QPC) programs, will provide sufficient data for IPS to determine the quality computation for Incentive Pay. IRM 3.43.401 Total Evaluation Performance System (TEPS) for Submission Processing Center Managers, contains the sampling tables for HQW Programs.

The Operator Summary Report (IPS4040) is generated each payout period. It summarizes the total volume of work performed by a data entry operator.

The information listed on the report by program and function is as follows: total time, total number of keystrokes and documents. This report listing has two primary sorts available by Organization code and operator number or operator number only.

The Quality Assurance Review Record volumes are incorporated for computing the total quantity and quality payouts. Any retroactive payouts (for programs worked when standards are not established) are listed on this report as a separate line entry for quantity and quality.

This report also contains a place for a manager’s signature when validating the data.

Each operator will receive a copy of the report shortly after the end of the payout period. The manager or LIPC member must review the report to verify the data. Refer to Exhibit 3.30.165–1.

The Program Standards Report (IPS 4042) is generated each payout period. It summarizes all programs that were worked for the period. Refer to Exhibit 3.30.165–2. Each program is a line entry that shows the following data:

The Accumulative Program Standards Report (IPS 80X40A) is generated for a specified accumulative period. It summarizes all programs that were worked for the period. The report shows the beginning and ending period dates.

Each program is a line entry that shows the following data:

The Accumulated Program Standards Report (IPS 80X40A) should be transmitted to the Headquarters office via electronic mail each quarter. Include your Submission Processing Center’s abbreviation in the file name.

On September 30 of each year run IPS–80Y40A to obtain January thru September cumulative data. Transmit this file to the National Office following the procedures in (3) above.

As a backup, send one copy of the report to the address below within one month after the close of the reporting period:

The Quality Review Data Report (IPS 4043) is generated each payout period by IPS using data received from PCA 05–11 computer program. The data file is sorted by Program & Function.

The report shows the information for each program and function reported on the Form 3081 that has been quality reviewed (program hours, volume, documents quality reviewed) and the number of errors identified on Form 3926. Programs that have not been quality reviewed do not appear on the report. Refer Exhibit 3.30.165–4.

This report should be used by the LIPC to determine if ample review is being performed according to IRM 3.30.28, Individual Review. If review is not being performed as required, circumstances should be reported to management.

This report is generated for a specified cumulative period. It accumulates the same data as the Quality Review Data Report described in IRM 3.30.165.2.4.

The report can be generated for a current quarter, a specified quarter, or for the year-to-date period. The beginning and ending period dates are reflected on the report. Refer to IRM 3.30.165.2.3 for procedures to generate desired report period. Refer to Exhibit 3.30.165–6.

The Analysis by Job Report (IPS 4044) is generated each payout period and is sorted by program number and function code. The second sort is by operator keystrokes per hour from highest to lowest. The median operator keystrokes per hour are shown on the last line of information for each program and function.

Asterisks (**) in the left-hand column of the report, identify the median operator or operators if it is an average of two. The quantity keystroke target and quality target rate are also shown.

The report lists for each operator number:

The Analysis by Job Report includes for each program the number of operators:

The report also captures the total program keystrokes, hours, quantity and quality payout amount. Refer to Exhibit 3.30.165–5.

The Accumulative Analysis by Job Report (IPS 80X42) may be generated for a current quarter, a specific quarter, year-to-date or July-December period. It accumulates the same data as the Analysis by Job Report. The data is displayed by program and function code. Refer to 3.30.165.2.6 and Exhibit 3.30.165–9.

The Award Point Report (IPS 6040) is generated each payout period. The LIPC can use this report to assign award points. The report may be generated and sorted by SSN within Organization Code or SSN. Award points are accumulated each time an operator is issued an incentive pay check.

For centers operating on a biweekly payout period, every payout generates one point toward the cumulative total. The maximum totals for one year are 24 points. Centers operating on a four-week payout period, every payout generates two points. See Exhibit 3.30.165-7. Refer to the National Incentive Pay Charter for further information. See Exhibit 3.30.165-16.

The Accumulated Award Point Report (IPS 80X43) is generated for a current quarter, a specified quarter, year-to-date or July-December period. It accumulates the same data as the Award Point Report. Refer to IRM 3.30.165.2.8. See Exhibit 3.30.165-8.

The $5.00 Tolerance Report (IPS 6041) is generated from those total payout amounts that were less than five dollars ($5.00), the minimum amount for which an operator will be paid an award amount for that payout period. It is sorted in three categories:

The category "Operators Deleted This Pay Period" , reflects those operators removed from the IPS data base and those operators who had a forced payment. A member of the LIPC initiates the above action when an employee resigns or is assigned out of an incentive pay area.

The LIPC will set the minimum amount of a forced payout. The amount can range from $1.00 to $4.99. See Exhibit 3.30.165-11.

The IPS Incentive Pay Earners Report (IPS80X45) lists the following data:

The report is sorted by the first two digits of the Organization Code (ascending) and the amount of Incentive Pay earned (descending). The accumulative period that the report can be generated may be quarterly, year-to-date, or July—December. See Exhibit 3.30.165-14.

The Interim Quarterly Report (IPS 80X44) is generated each payout period. It also can be generated for a current quarter or a specific quarter. Refer to 3.30.165.2.3. It summarizes the total number of operators within the categories of:

The total amounts of payouts for quantity and quality for each pay period is shown. Each payout period ending date and the total for each month will be displayed. The following data will also be reflected on the report:

A copy of this report must be sent to W&I Submission Processing Headquarters office on a quarterly basis. The Interim Quarterly Reports for each quarter will be submitted by each center to ensure receipt no later than the last day of the month following the reporting period. The report should be forwarded via electronically or mailed to the following address:

All reporting requirements are included in the computer generated report. The report must be signed by the Submission Processing Center Field Director or a designee.

For purposes of these reporting requirements, payout period and earnings periods are the same, although the actual paycheck is not issued until a later period. Each report includes information biweekly or a four-week period for all payout periods ending in a particular month. For example, if a four-week payout period ended on 12–2–02 and another ended on 12–30–02, the data for both payout periods would be shown separately on the quarterly report for December and the total for the month.

Reports for centers paying biweekly will show data for each payout period with the payout periods added including the total for the month. See Exhibit 3.30.165-10.

The Incentive Pay System transmits incentive pay records to National Finance Center (NFC) using a batch transmission process similar to transmitting Time and Attendance records. Centers transmit pay records to the NFC on a biweekly or monthly schedule.

Incentive pay data contained in IPS 64201, NFC—AWARD—PAYOUT—FILE will be converted to disk format using local programming. Data that has been reformatted and captured onto a diskette(s) file will then be transmitted to NFC.

Once the Incentive Pay data is on the hard disk of the PC, run program INCPAY.BAT and key in requested data:

INCPAYP.BAS writes the file hr data using a–e. Next, the JCL, Header Record, and date are merged using: copyipjcl.txt+hrdata+datafile ipjob.txt>nul:

The last step of INCPAY.BAT appends an end of file marker to the ipjob.txt file by using: echo /*>>ipjob.txt

Transfer ipjob.txt from PC to blank floppy disk using DOS copy command.

Transfer floppy disc to Personnel for transmission.

The Incentive Pay Summary Report (IPS 6043) is generated each payout period, summarizing the total being paid for that period. The report is in SSN order with the operator’s name and the total payout for that individual (quantity and quality amounts are combined).

If the centers cannot transmit using the Batch Transmission process (refer to IRM 3.30.165.2.13) a tape shipment will be used to send pay records to the National Finance Center (NFC) in New Orleans. Tapes should be shipped via express mail to the following address:

Tape shipment should be scheduled so that the tape will arrive at NFC from the second Thursday to the third Tuesday following the end of a payout period (either two week or four week).

Incentive Pay guidelines for processing tapes by NFC requires that a cover memo be included with the tape shipment. The memo should contain the following information:

The IDRS Command Codes (CCs) and definers used for IPS are as follows:

Contact the Data Base Administrator for assistance if an "error" message appears when using IPSUP, IPSAD, and IPSST Command Codes.

If the screen is blank, press the space bar to bring up the screen display. The following message will appear on the screen:

Hit the CLR HOME key (top row on the left). Enter SINON. The display will show SINON immediately followed by the cursor.

Enter P, your SSN (edited with hyphens), your last name followed by a space, and then your first initial. Then hit the right tab key (>). Enter the four character password.

Hit the transmit key. You will receive the message YOUR ENTRY CODE IS XX. XX will be different every time you use SINON. You must remember your IDRS entry code. You will need to enter these two characters as the last two characters entered before every transmission.

Hit the CLR HOME key.

Enter SINOFXX (XX equals your IDRS entry code).

Hit the XMIT key. Message received: REQUEST COMPLETED.

Hit the home arrow key "key." (The key is on the left side of the keyboard.)

Hit the arrow up key "key." (The key is immediately below the home arrow key.) The cursor will be at the very bottom of the screen display.

Hit the CTL PAGE PRINT. (The key is on the top of the keyboard toward the right.) The entire screen will be printed as it appears. Note that the time and day and the employee number will appear on the printout.

Command Code (CC) IPSUP is used to update operator data on IDRS.

To begin, hit the CLR HOME key.

Enter IPSUP immediately followed by your IDRS entry code assigned when you used SINON. Hit the XMIT key.

The screen will be formatted with the IPSUP Command Code followed by an edited field for the SSN. Enter the employee’s SSN, your IDRS entry code and then hit the XMIT key.

The screen will now be formatted with the IPS OPERATOR PROFILE UPDATE record entry fields.

When the OPERATOR NAME is entered, enter without spaces the first initial, middle initial and then the last name. Employees without a middle initial, enter a space. If the last name has punctuation, include the punctuation as (e.g., O’Hara). The space bar can be used to remove any "X" s appearing on the screen and to blank out the rest of the field.

When the OPERATOR NUMBER is entered, all five positions must be used. A leading zero must precede a four position number field.

The GRADE must be entered as a two position numeric field.

The ORGANIZATION is a five position numeric field.

The AWARD POINTS is a two position numeric field.

The TOLERANCE INDICATOR will be either a "0" or "1" . Zero "0" indicates the award amount is under tolerance and is in escrow. A "1" entered will force the amount from tolerance.

The OPERATOR STATUS INDICATOR will appear as an "A" , which indicates that the account will be updated to the data base during batch processing. To delete the account overlay the "A" with a "D" . Enter your entry code and XMIT. The LIPC member will now have the option to delete the record immediately by overlaying the "D" with a Y (yes) or a N (no) which will delete the account after IPS–60 is ran.

To force a payout from the tolerance file, a tolerance indicator of 1 and option "N" must be used. If the account needs to be deleted, enter a "D" , LIPC member has the option to enter "YES" (Y) or "NO" (N) before action is initiated. If "Y" is selected, the record will be deleted immediately and printed onto the IPS 6040, Operator Profile Adjustment (Delete) Listing. If "N" is selected, the record will not be deleted until after IPS 60 is ran and force payment to the employee.

When the cursor is on the bottom line of the screen after TIME, enter your IDRS entry code and hit the XMIT key.

Message received: REQUEST COMPLETED. If the SSN is missing from the data base, the message "DEFAULTING TO NEW OPERATOR" will appear at the bottom of the screen.

Command Code IPSAD is to adjust the amount of IP award. To begin, hit the CLR HOME key.

Enter IPSAD immediately followed by your IDRS entry code assigned when you used SINON. Hit the XMIT key.

The screen will be formatted with the IPSAD Command Code followed by an edited SSN field. Enter, the nine digit SSN immediately followed by your IDRS entry code and then hit the XMIT key.

The screen will be formatted with the IPS PAYOUT ADJUSTMENT RECORD which will have the OPERATOR NAME, ORGANIZATION and NUMBER displayed.

The PENDING QUANTITY and PENDING QUALITY amounts will be reflected on the display. Any money amounts can be added, but deleted only up to the pending amounts.

When the cursor is on the bottom line of the screen after the TIME, enter your IDRS entry code and hit the XMIT key.

Message received should be ADJUSTMENT COMPLETED. If an error message is received, make the necessary correction and re-enter.

To begin, hit the CLR HOME key.

Enter IPSADS immediately followed by your IDRS entry code assigned when you used SINON. Hit the XMIT key.

The screen will be formatted with the IPSADS command code followed by an edited field for the five digit Operator Number (leading zeros must be entered for Operator Numbers less than five digits). Enter the Operator Number, Program Number, Function Code, your IDRS entry code and then hit the XMIT key.

When the PROGRAM NUMBER is entered, all five positions must be entered. When the FUNCTION CODE is entered, all three positions must be used. To access the retroactive file, add four hundred (400) to the function code. For example, function 231 in the retroactive file will be 631. Valid function codes are the following:

The screen is now formatted with the IPS STATISTICS INPUT RECORD. The OPERATOR NAME, ORGANIZATION, and NUMBER will be edited on the screen.

The KEYSTROKES field must be completely filled. Leading zeros must precede significant data.

The RECORDS field must be completely filled. Leading zeros must precede significant data. The new input will override the data previously displayed.

The TOTAL OPERATOR TIME is a six position numeric field which must be entered completely. The first four spaces are hours; the last two spaces are minutes and cannot exceed 59. Hours can go up to 9999.

The KEYSTROKES/HOUR and RECORDS/HOUR are not entered from the terminal; they are computed by the system.

When all entries have been made, and the cursor is on the bottom line of the screen after the time, enter your IDRS entry code and hit the XMIT key.

Message received: REQUEST COMPLETED or INVALID FUNCTION.

Error Messages are as follows: If the minutes are greater than 59, "INVALID MINUTES" will appear on the screen. If fields are filled with zeros, a message, OPERATOR STATISTICS DELETED, will appear. If all the (x’s) in the records field are not covered, the message, RECORDS MUST BE NUMERIC, will appear. Hours must be numeric or the message: INVALID HOURS, will appear.

For reviewing operator statistics on the IPS data base, the function code is not validated. However, inputting any changes to the operator statistics, the function code is validated.

Keystrokes for an operator who has worked on a program for which targets have not been established, can be accessed and changed through the program number and the assigned function plus 400, i.e. keystroke data for program 231–10060 is accessed under 631–10060.

This CC must be used prior to the running of IPS–40.

To begin, hit the CLR HOME key.

Enter IPSADQ immediately followed by your IDRS entry code assigned when you used SINON. Hit the XMIT key.

The screen will be formatted with the IPSADQ command code followed by an edited field for the Operator Number, Program Number, and Function Code. Enter the data, your IDRS entry code and then hit the XMIT key.

The screen will be formatted with the IPS Quality Review Data and statistics that have already been input. The OPERATOR NAME, ORGANIZATION, and NUMBER will be edited on the screen.

The PROGRAM NUMBER, FUNCTION CODE, KEYSTROKES, RECORDS, TOTAL OPERATOR TIME, KEYSTROKES/HOUR, and RECORDS/HOUR will be displayed but cannot be changed.

The DOCUMENTS REVIEWED and the DOCUMENTS IN ERROR are the only fields that can be updated on this display. All (x’s) must be overlaid with zeros or a number. Regardless of the numeric value displayed, the new input will override the previous numbers displayed. (X’s not overridden will post to the data base)

Input of the command code with definer " Q" must be done after the running of IPS–20 and prior to the running of IPS–40.

When all entries have been made, the cursor is on the bottom line of the screen after the TIME, enter your IDRS entry code and hit the XMIT key.

Message received: REQUEST COMPLETED or INVALID FUNCTION. If there are no statistics for the program, the error message: "NO STATISTICS FOR THIS PROGRAM, FUNCTION" will appear.

Quality Review data for an operator who has worked on a program for which targets have not been established can be accessed and changed through the program number and the assigned function plus 400, i.e. Quality review data for program 231–10060 is accessed under 631–10060.

To begin, hit the CLR HOME key.

Enter IPSST immediately followed by your IDRS entry code assigned when you used SINON. Hit the XMIT key.

The screen will be formatted with the IPSST command code followed by a formatted input field for the program number and function code. Enter the program number and necessary function code immediately followed by your IDRS entry code and then hit the XMIT key.

The screen will now be formatted with the IPS PROGRAM STANDARDS RECORD entry.

If there are no standards for the program and function code on the data base, the message, NEW STANDARDS, will appear. For programs and functions already on the data base, the current target will appear.

The QUANTITY TARGET is edited into a five position field. All five positions must be used in order for the target to be properly loaded on to the data base. The QUALITY TARGET is a four position decimal field. All four positions must be used in order for the target to be properly loaded onto the data base.

The COST field is four decimal position field. All four positions must be entered in order for the target to be properly loaded on to the data base.

The Quality Bonus Multiplier is established and updated by using this command code. The function and program codes are 999 and 99999 respectively. The Quality Bonus Multiplier has a minimum value of $1.50.

When all entries have been made, and the cursor is on the bottom line of the screen after the TIME, enter your IDRS entry code and hit the XMIT key.

To begin, hit CLR HOME key.

Enter IPSSTD immediately followed by your IDRS entry code assigned when you used SINON. Hit the XMIT key.

The screen will be formatted with the IPSSTD command code followed by a field for the Program Number and Function Code. Enter the Program Number and Function Code, your IDRS entry code and then hit the XMIT key. Note: Program Number 99999—Function Code 999 cannot be deleted.

The screen will now be formatted with the IPS PROGRAM STANDARDS DELETION RECORD.

The PROGRAM, NUMBER, FUNCTION, QUANTITY TARGET, QUALITY TARGET, and COST will be displayed on the screen. You must respond to the question about removing the program with a Y or N.

When all entries have been made, and the cursor is on the bottom line of the screen after the TIME, enter your IDRS entry code and hit the XMIT key.

Message received: REQUEST COMPLETED or the following error messages:

Sign On/Sign Off instructions are contained in IRM 3.24.37. Distributed Input System (DIS)—General Instructions. "If an operator fails to sign off from the terminal as prescribed, the internal time clock will continue to run and thereby give the operator a lower performance standard for the program" . Since this failure on the part of the employee will affect the incentive pay entitlement, the operator’s immediate manager or designee must provide information to the LIPC regarding any adjustment deemed necessary.

An employee has the responsibility to notify the manager/designee as soon as the situation is discovered. The employee must determine the time the terminal was incorrectly in the Sign On mode, the program worked, and whether OE or KV.

If the LIPC is notified of the time the terminal was incorrectly in the sign on mode prior to the running of IPS–40, the operator’s time can be adjusted through the use of command code IPSADS. The correction can be made by changing the time recorded on the data base for the reported program and function to reflect the subtraction of the time the operator was incorrectly signed on to that program.

If the LIPC is not notified of the time the terminal was incorrectly in the sign on mode prior to the running of IPS–40, the operator’s quantity incentive pay can be recalculated using the following formula:

If the LIPC is not notified of the time the terminal was incorrectly in the Sign On mode prior to the running of IPS 40, the quality bonus on all programs can be recalculated using the following formula: