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Global payroll solution that complies with US Government contracting requirements

Fully automated, on-demand payroll solution that drives payroll accuracy and strict compliance

At a glance

Client details

Kratos Defense & Security Solutions

Region supported by Mercans

EMEA

Targeted staff

Approx. 1,800

Mercans’ services

Managed payroll solution

Industry

Defense & Security

Company global headcount

2,700

Previous Payroll Provider

In-house

Background

Kratos Defense & Security Solutions Inc is an American multinational company which specializes in directed-energy weapons, unmanned systems, satellite communications and cyber security/warfare, missile defense, training and combat systems for national security. Customers include governments, commercial enterprises and state agencies.

Kratos has primarily an engineering and technically oriented workforce of approximately 2,700 with a significant number holding national security clearances. Almost all of Kratos’ work is performed on a military base, in a secure facility or at a critical infrastructure location.

in-house payroll

Mercans’ payroll

Client’s challenges

By essence, the operations of Kratos are extremely case-sensitive as they involve relationships with governmental entities. Therefore, they needed a trustworthy outsourcing partner not only able to quickly implement highly-reliable automated calculation processes but also to ensure compliance with the US government contracting regulations (CAS & FAR), while adjusting and integrating its solutions to an existing ERP.

Continued payroll process complianceKratos needed payroll to continue being delivered seamlessly even with the increased automation. Government contractors also have a number of strict rules to do their cost accounting including CAS (Cost Accounting Standards) and FAR (Federal Acquisition Regulation) cost principles. Kratos wanted an assurance that these would be complied with.

Integration of the US and local payroll processes for expatriate staffBefore this, payroll was handled separately creating delay and some process duplication. Integration of these processes would simplify things while reducing time and cost.

Automation of payroll calculations and integration with the in-house ERP systemThe increase in automation would reduce error and manual effort while ERP integration would mean more informed decision making.

Mercans’ project management approach

Deployed a dedicated team

We put in place a dedicated implementation team which was overseen by a Steering Committee.

Planning and communications carried out on-site

We ran multiple on-site implementation planning and business requirement sessions. These helped all team members to stay on track, improved communications across the board and enabled us to spot and address issues as they arose.

Brought on specialists

To ensure all the cost accounting would proceed well, we involved US CAS and FAR specialists throughout the implementation process.

Supported Kratos with training and development

To guide the client through this transition and ensure minimal disruption or confusion, we ran multiple ESS and timesheet online training sessions for Kratos staff.

Mercans’ solution

Implemented an online timesheet module and integration with payroll and ERP systemThe timesheet module tracked time spent across different projects, thus enabling managers to review how employees spent their time. Time data could be imported into payroll. The integration effort meant a single dashboard for all HR and payroll issues, for administrators, managers and employees.
Deployed CAS and FAR compliant ESS (employee self service) and Payroll Administrator ConsolesSuccessfully deployed a fully-compliant ESS and administrator consoles that rested on a robust system architecture and provided seamless payroll setup. This single dashboard provided deep insight into earnings and deductions as well as facilitated dynamic reporting.
Introduced fully automated in-and outbound payroll interfacesIn-and outbound payroll interfaces enabled Kratos to exchange data with a third party payroll system. Full automation avoided data re-entry and errors and enabled post-processing reports to be quickly generated.

Business benefits

Successful implementation: Kratos was able to successfully transition from their in-house payroll provision to Mercans’ global payroll platform

Speed: The entire implementation process occurred quickly, in under six months

Compliance: There was full compliance with the US government contractor requirements

Accuracy: payroll accuracy went up from 96% to 99.8%

Significant cost and resource savings: Internal payroll staff was reduced drastically by 90% with payroll function related costs reduced by over 50%

Tremendous time savings: the fully automated and on-demand payroll solution reduced the entire payroll generation cycle down from 24 hours to 10 minutes.

Successful implementation: Kratos was able to successfully transition from their in-house payroll provision to Mercans’ global payroll platform

Speed: The entire implementation process occurred quickly, in under six months

Compliance: There was full compliance with the US government contractor requirements

Accuracy: payroll accuracy went up from 96% to 99.8%

Significant cost and resource savings: Internal payroll staff was reduced drastically by 90% with payroll function related costs reduced by over 50%

Tremendous time savings: the fully automated and on-demand payroll solution reduced the entire payroll generation cycle down from 24 hours to 10 minutes.

Simplify your global payroll operations while remaining compliant at all times.

Mercans’ direct in-country presence and revolutionary global payroll technology guarantee you complete statutory compliance and accurate payroll calculations.

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