Payroll is a crucial and deceptively straightforward aspect of running a construction business. Above all else, calculating payroll is a tedious task that needs to be processed timely and accurately. Before it becomes a costly affair, it’s important that you streamline payroll processing with the help of construction technology without sacrificing payroll accuracy.
The age-old way of calculating payroll involves doing the calculations manually. Needless to say that this process is prone to error and time-consuming. Not only this leads to mistakes but also one needs to catch up with the filings of receipts and billings. If you are outsourcing these responsibilities, this makes calculating payroll even more costly.
What is the construction payroll management process?
Payroll stands for the amount of money that a firm pays to its members and employees. It includes wages, salaries, and also a set of employee records and information. A construction payroll management process deals with the implementation and administering of payroll functionalities.
Some businesses rely on construction payroll software that manages deductions, leaves, and tracking of hours among other things. This establishes transparency, financial stability and also cuts unnecessary costs.
It also includes regulations and guidelines surrounding the payroll process. Keeping the information organized and accessible is also a part of it.
To handle the construction payroll management process it is important to have the right system in place so that it is not stressful. Here’s how you need to improve your construction payroll management process in 2021:
Identify your Payroll Needs
The first step towards putting your construction payroll management in order is to identify the need for your organization. If you still have not automated tasks and are spending hours on paperwork, billings, and using generic software abound with bugs and inefficiencies – it’s time for an upgrade.
Choosing the right fit for your organization is an important part as you need to understand whether you plan to scale your business in the future. It’s always better to choose the solution that will evolve or adapt whenever you grow your business and meet the demands of future projects.
Depending on your needs you may opt for construction-specific software with great features to take care of payroll. If you operate in multiple locations with a varying set of tax and labor regulations, then multiple location processing is needed. In federal jobs, certified payroll processing is needed, and relying upon paperwork may be cumbersome.
Going Digital for added efficiency
Investing in software that also takes care of payroll is a great way to improve your payroll management process in 2021. Those who believe that paper is safer and better will no longer survive this ‘next normal’. The complexities that arise with new projects cannot be handled manually if you are not ready to automate to face the competition in the long run.
Relying on manual processes like digging up old receipts and billings, old checks, and time cards, and filing them tantamounts to inefficiency. Besides, there is no transparency, lesser visibility, and no way to monitor the entire process.
Hence the need to invest in construction technology that offers intelligent transaction processing capabilities is the need of the hour. By deploying a cloud solution you can pull up data anywhere and anytime. Also, this makes auditing easier and brings added efficiency to the process where project owners can monitor progress.
In fact, carrying out financial risk analysis coupled with ironing out any glitches when it comes to payroll becomes easier when you rely on construction technology. By processing the payments digitally you can stop profit leaks and identify future trends that will establish economies of scale.
Using a Payroll Service
To improve the payroll process, you can always choose to outsource it. Having a dedicated payroll service provider can offload tasks so that you can work on a crucial project.
Keeping up with tax codes and technology is no easy task. By partnering with a payroll service you reduce risks and improve the construction payroll management system in your organization.
Also, it does not mean that handing over all payroll responsibilities to a third party. It simply stands for delegation of the technical side so that you’ll reap the profits. Keeping the channel of communication with the rest of your staff is still a requirement.
Regular Audits to strengthen control
Whether you believe in old school timecard or have fully integrated payroll software, one of the best ways to improve the process is to perform regular audits. The ongoing audits keep errors at bay as well as help you strengthen control over your company’s projects.
It’s always better to conduct checks if the field or formula is entered correctly or not, otherwise, errors can prove to be costly for the business. Most importantly when using an automated solution, do not “set it and forget it” as it can throw you off if not monitored closely.
Moreover, a thorough audit can revamp your efforts. By checking number values and examining the payroll process from start to finish you can ensure that everyone is on the same page.
Complying with Tax and Regulatory Policies
Make sure that you comprehend the government and state laws and regulations when it comes to the payroll process. File your payroll correctly to stay out of tax trouble as any miscounted finance can lead to grave consequences.
Therefore, you must stay up-to-date with changes in tex codes annually. Follow proper payroll protocols to avoid costly lawsuits. Make sure that your calculations are correct and employees are receiving proper overtime.
Get the support you need
If your payroll process needs attention and you are not clear about how to improve or go about it, get in touch with a payroll consultant. This way you’ll be better prepared to handle the complexities of the construction industry and you can make a note of whether the latest payroll software will be feasible for your business. Moreover, you can also take demo requests from software providers to understand the features and payroll capabilities of the software.
By keeping yourself informed, you can prioritize preparation and have a plan in place. With the help of construction experts, you can understand where you need an upgrade. It will also help you assess and evaluate what’s working or not working with your current construction payroll management system.
Next Steps
To improve your construction payroll management process in 2021, you need to stay up-to-date with the payroll requirements. Having a dedicated robust solution with unique reporting and analytical capabilities can work wonders for your construction firm. Deploying tech can add efficiency and accuracy as well.
As the diversity and complexity of the work increase, driving efficiency should be your topmost priority. By relying on job costing, inventory tracking, and enterprise resource planning platforms you can cope with unpredictable costs and periodic shortage of skilled labor.
It’s time to do away with time-consuming and error-prone manual data entry and bring in the next-generation suite of payroll software. Using purpose-built construction software can help you with certified payroll reporting and directly impact your bottom line.
Although construction payroll presents unique challenges construction companies are much better placed today to streamline this process. You have to step up your game by making radical improvements in timeliness and accuracy when it comes to processing payments. So it’s time for an upgrade all the way.