Three Ways Costpoint Makes Payroll Easy
Before they start to scale up, almost all small businesses struggle to manage payroll alongside their other expenses. Deltek Costpoint offers three flexible payroll options that regardless of the speed of growth within a government contracting business, can effectively meet an organization’s immediate and future needs. These options include: conducting payroll within Costpoint itself, processing payroll in Costpoint while outsourcing tax filings, or utilizing integration with a third-party for payroll processing. Learn more about these options and how they can fit within the phase of business maturity your business may be experiencing.
Option 1: Payroll Within Costpoint
If you’re a small business getting started, conducting payroll in house might not be feasible. If your organization is at a point where bringing payroll in house is an option, there are a number of benefits that come with the Human Capital Management module within Costpoint to take full control of the human resources (HR) process.
- Cost efficiency: Reduces overall costs running payroll in house and eliminates having to develop a contractual commitment to a third-party vendor.
- Integrated solution: Payroll process is fully integrated and seamless with the rest of Costpoint (Cash Management, General Ledger & HRIS, Employee Self Service) along with Deltek Time/Labor.
- Fewer overall risks: With outsourcing requiring you to design and build an ongoing management of data integration feeds, if an interface fails, payroll is impacted causing employees to not get paid. The perception is that processing payroll in-house is more risky when actually the risk is typically associated with tax reporting within enterprise organizations, which can be outsourced.
- Greater control and flexibility: Owning the payroll process and associated deadline allows for flexibility where needed. There are no extra costs for exceptions or concerns about missing cutoff windows through outsourced providers.
- Empower employees: Costpoint's Employee Self Service gives employees the ability to access some of their own payroll information including pay stubs and W2, creating less dependencies on HR.
Option 2: Payroll Processed in Costpoint With Outsourced Tax Filings
While Costpoint has the ability to manage the entire payroll process, many companies do not feel comfortable conducting tax processing. If you’d like to have all of the benefits expressed in option 1 above but don’t want to do the tax processing yourself, you can still conduct your own payroll within Cospoint and outsource your tax filing’s with a third party. One benefit of Costpoint in this regard is the fact that Deltek offers a standard payroll tax export file with our payroll solution that will give you the data in the provider’s format. As mentioned previously, risk is typically tied to the tax reporting’s component of the payroll process. By outsourcing the tax filings, you eliminate unwanted risk while still having control over your internal payroll functionality.
Option 3: Third Party Payroll
The final option, allows you to do all your labor processing within Costpoint but completely outsource your payroll processing to a third party. This option is particularly attractive to smaller businesses that are either just starting out or are still in an initial growth phase. When you only have a few employees who wear multiple hats their time can be stretched across many projects and adding payroll to their schedules might not be feasible in the early stages. If you have a payroll provider that you have a good relationship with, a switch to Costpoint doesn’t mean you have to end that relationship. Costpoint has built in integrations with ADP, Paychex, and Ceridian but can also integrate with most other third party payroll providers through our open application programming interfaces (API’s). With a third party, you eliminate the workload from an employee that may already have too much on their plate or who might be better served contributing to other projects. This option also allows scalability and the ability to transition to one of the first two options as your business grows.
Whichever option suits your current business needs, know that Costpoint is flexible enough to support you and your payroll requirements no matter your current phase of business growth. Want to learn more about Costpoint and how we help government contractors meet their challenges head on? Then join us for Deltek Insight 2021. This innovative gathering of project-based professionals will feature inspiring keynotes, live product sessions, virtual networking opportunities and will take place September 14-15.
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