Payroll management is more than cutting checks for employees. It involves a complex process that requires accurate data and adherence to internal deadlines for filing taxes and forms. It also includes calculating employee hours and costs, tracking job progress and creating certified payroll reports for government or military contracts that require prevailing wages.
Invest in Software
Payroll management in construction is a complex process. It involves more than just tallying up hours worked and multiplying it by the employee’s hourly rate. It’s also about classifying workers, coordinating schedules, and optimizing work orders by project or crew. Investing in payroll software like Roll by ADP can help your construction business be more efficient and accurate. It’s important to look for a solution designed specifically for your industry and can handle your unique needs. For example, you may want to find a solution that offers geofencing technology to track worker location and prevent buddy punching and time theft.
Aside from the obvious benefits of automated time tracking, the right construction software system can save your company money by reducing errors and streamlining processes. It can also reduce the number of manual steps in your workflow, freeing your employees’ time to focus on other tasks. When choosing a construction payroll system, consider the cost and scalability. Many solutions will request a percentage of the firm’s revenues or margin on projects managed through their platform, while others will have fees that scale with the amount of work they handle. The best solution for your firm will be one that provides scalability and affordability to accommodate your growth over the years.
Payroll management in any industry is complicated, but in construction, it takes on a whole new level of complexity. The workforce is spread across multiple job sites, each with unique schedules, conditions and tasks. Additionally, labor law complexities like unions and concepts such as prevailing wages and certified payroll can complicate things even more. These factors can add to a huge burden for a small business trying to handle payroll independently. This is where outsourcing comes in. A payroll service provider can take some of the load off of a business owner by running everything from time tracking to calculating payroll taxes and filing reports. Additionally, payroll services can lower costs by lowering the frequency of errors.
A payroll service can also handle more complex issues like preparing W-2s and completing taxation documents, which is especially important for construction businesses since they may have to meet specific federal and state requirements. A payroll service can also offer tools to streamline processes, such as importing employee time cards and providing online portals for employees to view their paychecks and related documents. A payroll service can offer a range of features for the construction industry, including multistate and local payroll, job costing and industry-specific reporting, which is particularly helpful for construction firms working on government or military projects. It can also provide an all-in-one solution by combining payroll with other essential HR functions like building stronger career paths, fostering DEI programs and delivering better employee benefits.
Use a Checklist
Cutting a check every two weeks is only one aspect of payroll. It’s a complex process that requires accurate time tracking and compliance with various laws and regulations. Unfortunately, mistakes can cost your company big in fines and lost productivity. Construction payroll is more complicated than other industries because it involves multiple locations and various projects with unique conditions, schedules, and tasks. It makes it difficult to track employees’ hours and rates accurately. Additionally, it’s common for workers to switch between different projects with different wage rates. Ensuring that time tracking is accurate and compliant is even more important.
The best way to streamline your construction payroll process is by hiring a provider that understands the industry’s complexities. A specialist can provide tools that help you comply with federal, state, and local laws. A good solution should be able to handle union tracking, job costing reports, certified payroll, and prevailing wages. If you’re considering working with a payroll provider, it’s best to start with the basics and build up from there. Be sure to consider the upfront reoccurring fees, installation charges, and maintenance fees that are subjective to your company’s needs. Once you find a solution that meets your company’s specialized requirements, it can save you a lot of money in the long run.
Invest in Technology
An ERP, time tracking, and payroll system designed for construction allows for process automation, compliance, real-time insights, and cost savings. It also helps you reduce the need for manual calculations, which can result in errors. Investing in this technology is essential for any construction business looking to keep up with today’s industry demands. A good system will allow you to track hours and expenses by project, crew, and site. It will help you understand your labor costs to budget your projects better. It will also enable you to create more effective schedules to ensure employees perform at their peak. Human error can be extremely costly and difficult to correct in a busy construction workplace. It can be nearly impossible to sort through and verify time accurately, especially if employees are texting in their hours or writing them down on paper. It can be a major problem for large projects and a big reason for many payroll errors. A streamlined time-tracking and payroll process is crucial to a smooth construction operation. It will save you time and money by eliminating areas where mistakes are likely to occur and will make it easier to attract skilled workers. Whether you’re working in-house or outsourcing, implementing an efficient system will help you avoid the costly mistakes that often plague this fast-paced industry.