Construction companies usually hire a huge workforce due to the nature of the job. So, having a consolidated and robust payroll system in place is crucial
A payroll system will automate the process, saving you time and effort. Staying compliant with regulations becomes easier as the system will take charge of all aspects. Moreover, managing reports on a monthly or weekly basis will be streamlined.
However, you need to understand that construction-specific payroll software simplifies the process and is designed differently.
So to make your evaluation process easier, we’ll be sharing 9 unique ways to help you choose the right payroll software.
1. Managing Job Costing
Does your software let you allocate a worker's time across several tasks and phases?
For proper job costing, you must keep track of all related expenses, including labor. Accurately entering payroll time to specific job and phase cost codes results in a better understanding of where your labor dollars are being spent.
2. Cost of Burden
How effortless is it for you to figure out and keep track of burden costs like workers' compensation, FICA, union benefits, and numerous state and federal tax requirements?
A crucial component of managing cash flow is understanding what burden costs you owe.
Knowing the actual burden costs related to your labor will help you estimate jobs more accurately and also give you time to budget for these costs so you won't be surprised when the bill is due.
3. Printing Single Paycheck
Does your payroll software create a single check for a person who works for numerous unions, multiple companies, multiple positions, and different pay rates simultaneously?
The ability to print a single paycheck automatically, regardless of the circumstances, is essential for busy construction payroll departments.
4. Quick Deposit
Can you electronically deposit your employees' wages into their bank accounts, eliminating the need to deposit paper checks? Your employees will benefit greatly from the convenience of having quick access to their payroll cash without having to visit the bank if your software allows direct deposit.
This is especially useful for field workers or service personnel assigned to outlying job sites or locations that need help picking up their paychecks from the office.
5. Multiple Deductions
Do you have an automatic system for managing the different deductions for each job location if you work in many states?
It is highly time-efficient to set up local deductions for the county, municipal, or school district taxes and allocate them to jobs.
Taxes are automatically computed as employees work at various job sites. This tool is also beneficial for managing payroll deductions like child support payments, tax assessments, and benefit plans.
6. Defined Deductions
Can you set up various user-defined deductions like employee purchases, garnishments, 401K contributions, and advancements in your payroll software?
Unless your software handles this user-defined manner, items in a flexible, managing the multiple workforces' pay deductions can be a paperwork nightmare.
7. Get Certified Payroll Template
Are the reports required for tasks that demand certified payroll, such as Prevailing Wage and Statement of Compliance reports, readily producible?
Any payroll period in any payroll year should be able to request these reports from your software.
In addition, both unionized and non-union jobs should have access to this capability.
8. Union Reports
How much time do you spend each month producing the necessary reports if you use union labor?
Detailed burden and benefits tracking and the capability to produce necessary reports upon request are characteristics your payroll software should have to fulfill the numerous requirements of union labor.
Each time a payroll is run, union burden amounts should automatically accumulate for inclusion in monthly reporting to the union administrator.
9. Data Reporting
Does your software support date-sensitive reporting?
In the case of an audit, the ability to print date-sensitive reports is essential. For example, union and prevailing salary rates fluctuate frequently.
Creating a report for any given period is quick and straightforward if the recorded rates are stored in your software by date.
One of the best payroll software features should be able to manage paychecks when it comes to rolling out salaries. This will help you with the automatic reversal of linked entries.
ProjectPro is an all-in-one construction accounting software that enables you to integrate with a third-party payroll system. Using the power of Microsoft Dynamics Business Central, ProjectPro helps you simplify the entire process efficiently.