Staying ahead of the competition while managing the complex construction payroll process is a challenge for even the most experienced payroll and accounting professionals
There is a lot at stake as construction managers need to pay skilled laborers on time, look into the nitty gritty of certified payroll and meet special union requirements. There is a different mix ranging from reliance on electronic as well as paper processes that record labor time and data to distribute wages. On top of it, projects that are carried out in different regions, states and municipalities come with specific tax rules, varying rates and many different requirements. So the payroll processes can prove to be quite an uphill task altogether.
When you are looking to simplify and make payroll processes quicker you need to consider aspects like choosing a technology solution that assists with integrations with other key softwares, online accessibility and streamlining accounting reports.
Despite the challenges, there are ways to improve your payroll process. Let us look at what you need to keep in mind before deploying a payroll solution.
1. Switch to construction specific payroll software
If you are a construction business, then you have the option to choose construction payroll software that meets the needs of your team. Instead of relying on manually calculating wages you need to automate your payroll process. But a word of caution here, do not choose off the shelf, generic solutions because you may not be able to meet the needs of a growing construction business.
ProjectPro with Business Central has the added capabilities of handling payroll issues and can easily integrate with multiple payment solutions. Other than that, you should partner with a software that is designed to handle construction-specific payroll challenges.
With the help of construction-specific payroll software you can easily take care of multi-project processing, meet union payroll specifications, access built-in codes to compute taxes and easily match labor to specific project cycles and jobs.
In addition to this, make sure that you are opting for a cloud based software system, this will empower you to process paychecks in real-time,meet the needs of subcontractors and stream labor hours to calculate pay rates.
You can avoid the time-consuming process of physically exerting yourself and calculating payroll where errors might occur. Moreover, having a software will ensure that the weekly paychecks are issued on time.
2. Ensure a transparent payroll process to improve communication
Employee payroll processes should be transparent and easily accessible. It provides insights on union dues, policies on taxes and wages, wage garnishments, sick leaves, deductions and health benefits and having a sound knowledge of this helps payroll professionals avoid any future discrepancies.
Ensuring transparency where payroll is concerned helps contractors provide clear direction, win trust and creates a better relationship between human resources personnel and employees. This will also make the employees more aware about the regulation and reference rules and it will help them stay longer.
3. Make the Payroll process hassle-free
You can do this by making direct deposits and this will significantly reduce your payroll processing time. Make sure your workers are getting paid on time as there is a significant shortage of skilled laborers and you need to keep them happy. You can use reliable online payment processing sites or ready-to-use debit cards to pay wages timely.
4. Empower your field teams by saving payroll processing time
Construction professionals can also explore options like mobile time card solutions that can capture work hours, digitally sync with the back office instantly. This will save you from rekeying crucial labor hours and time consuming tasks of tracking down missing time data. With the help of technology, you can improve your payroll process in a snap.
5. Say yes to technology
Technology uptake can significantly help you manage your payroll process as you will have software at disposal that will keep tabs on expense reports, tracking hours and look into receipts and paid time off.
You can easily get email alerts and updates on wage-related queries, pay stubs and more. To meet the payroll needs, construction owners have mobile tools, online features that are part of construction software suites and web portals where they can easily log in to view wage rates and number of hours logged while working on a project.
Other than that, technology deployment can save time, reduce liabilities with reference to payroll as it creates digital audit trails. Employees can easily see documents, benefits, W2s, information related to pay stubs and taxes.
Further, you no longer have to rely on paper and this can speed up the process.
Way Forward- How ProjectPro can help you improve payroll process?
As the construction complexities increase with time and disruptions that occur in the supply chain process and also due to shortage of skilled labor, it is important to improve your payroll processes.
ProjectPro with Business Central and with 20 years of construction proficiency can help you smoothen your payroll process. ProjectPro can help you stay competitive by automating your payroll process and allows you to integrate with potential payroll solutions.
For a construction professional, it is easier to streamline entire project management and keep track of all payment activities related to active jobs. Thus, ProjectPro can help you achieve payroll processing efficiency and enable you to stay compliant with labor wages and carry out error free entries. You can use a certified payroll report with WH-347.
You can also use the “Advance Job Labor” module in order to create a specific burdened rate and also get immediate assistance with job costing of labor. With the help of the report you can measure the productivity of your workforce and also maintain access to the labor entries. You can also export for outsourced processing with ProjectPro.
ProjectPro also enables you to post timesheets related to employee time by entering the value of estimated hourly labor cost.
To know more how ProjectPro powered by the latest technologies of Microsoft and with Business Central can significantly improve your payroll process and automate the reporting operations, schedule a demo with our construction experts today!