When it comes to construction payroll complexities, construction firms find it to be a complex and stressful process. The challenges in payroll are many as there are constant regulatory updates and changes that abound the construction landscape. Thus, payroll processing assumes significant importance as it becomes imperative to stay proactive and vigilant in the construction industry.
Many construction companies need to account for their business and pay their employees by adopting accounting processes that are accurate and up-to-date. Some firms choose to outsource payroll as it gets difficult to deal with complexities while others prefer to do it in-house or via a professional organization. This can help you save money and time as you can do away with re-work and calculating and adjusting towards the month-end.
It is increasingly important for construction firms to stay vigilant and avoid scams by verifying all details. You need to understand all the complexities that surround payroll across regions and states. It is important to know the local or state laws. If you are doing your W-2s incorrectly, there are penalties and so you should be aware of the tax laws as well.
Apart from that, calculating construction payroll is a complex process. A construction business needs to maintain payroll compliance and even collective bargaining agreements have their inherent set of complexities. There is also the issue of keeping subcontractors happy and keeping grievances at bay. Moreover, by maintaining timesheets and capturing time ensures there are no errors and omissions. The need to pay employees correctly and on time and ensure that the process is transparent . Other than that payroll processing also involves checking whether labor costs are on or off the budget.
With construction payroll software, payroll processing is a lot easier. Since most construction companies work on projects that fall under different tax jurisdictions, it can be quite costly if you do not get the local, district and even state level taxes right.
So how to deal with payroll complexities when you choose to deploy a construction software. Your construction payroll system should have the following capabilities:
1. Ability to handle compliances
Construction businesses are required to manage a variety of compliances. There are union collective bargaining agreements and laws related to state and federal government. Hence a construction software should assist you with processing real-time information to avoid penalties related to non-compliance.
2. Ensuring effective time capturing and document tracking
When you employ a mix of both hourly workers as well as those who draw salary, calculating an employee’s earned wages can be a tough task. To pay employees correctly, document tracking and effective time capturing is important so that payroll is processed accurately. A construction software should help you with matters related to taxation rules and fringe benefits. By capturing time spent on the job site and then using the information at the time of payroll processing, construction payroll software can empower stakeholders and managers to keep tabs on hours allocated to each project.
Other than that, when hours are not aligned, stakeholders can intervene to get back on track by ensuring transparency and strengthening control over each phase of the project.
3. Construction accounting for local tax variations
There is a need to know varying local taxes in each state and regulations as construction businesses are working on multiple sites. Sometimes workers may be assigned jobs in two different states so the HR team must know the tax regulations. Hence, the need to leverage a payroll system that applies local tax rules is needed. This enables the HR team to handle the payroll of employees engaged in multi-state projects. Thus, construction software should streamline the operations.
How ProjectPro with Business Central helps you deal with payroll challenges?
ProjectPro with Business Central helps you with error-free and certified payroll reporting with WH-347:
Assists you in creating specific burdened rates to charge for the day to day jobs
Prepare integration for either Business Central Payroll Solutions
Helps you maintain access to the labor entries
You can also post labor on a daily basis from timesheets through job journals
Allows you to share labor entries with your integrated payroll solution or export for outsourced processing
You can always keep a check on the scope of work
Assists with maintaining access to the labor entries
ProjectPro all-in-one construction accounting software offers multi-channel payment integration which allows you to integrate with potential payment solutions like Paychex, Payroll NOW, ADP, Paylocity, and more.
It even allows you to work on multiple projects at the same time which means you can easily keep a check on all the payments associated with active jobs. Moreover, you can stay connected with all your construction accounting data through timesheets to streamline the entire construction projects.
Our all-in-one construction software allows your construction business to automate your payment process with payroll integration and helps your business stay competitive. By eliminating the costly mistakes caused by human error, you can save significant costs. Having an accessible, efficient, and accurate payroll integration capability generates more profits!
Witness an increase in revenue in no time by choosing ProjectPro to strengthen your accounting process. Improve productivity by minimizing expenses and eliminate rework by analyzing transactions whenever you want. Increase your construction revenue by growing your sales with ProjectPro.
It offers greater flexibility and capabilities to scale your construction business to heights. So it’s time to invest in software that is robust and safe so you can fully embrace and utilize it to incur profits and added productivity for years to come.
With 20 years of construction proficiency, ProjectPro helps you to make the most out of your business software. Generate more revenue by keeping track of all inflow and outflow of cash, payroll processing and control your costs by keeping tabs on project progress. Our construction accounting software can help you simplify complex financial activities to make your construction business more profitable than ever before.
Want to learn how ProjectPro with Business Central is a worthy investment for your construction firm? Schedule a demo with our top construction experts to unlock the payroll benefits today!