Handling construction payroll isn't exactly easy. After all, you're dealing with a litany of complexities from contract workers, union commitments, time tracking and so much more. Facing these circumstances, managing your payroll can get confusing fast.
However, getting your workers paid doesn't have to be nearly as complicated as it has traditionally been. With the right tools and strategies in your tool kit, you can develop a streamlined process for payroll operation that eliminates the problems on both the management and the employee side.
Understand the complexities of the issue, then learn how to streamline your operation with these useful tips.
Streamlining Your Payroll
The mountain of nuances you'll have to address in working with construction payroll can be enough to give anyone a headache. Not only are there collective bargaining agreements that you'll have to comply with, but the different types of workers, tax situations and pay structures can add up quickly to create a difficult experience.
Fortunately, however, software and technology tools can help you improve your construction business stability and longevity through streamlined payroll innovation.
Here are some tips for helping you find, implement and maximize the potential of these useful tools and strategies:
1. Assess your business needs.
First, you need to address the needs of your particular business model. For example, some construction firms will have to navigate multiple sites, hundreds of employees and a variety of vendors in need of payment. Even completing a task as seemingly simple as communicating back to the office can be a problem when dealing with scale.
By assessing needs like the size of your business, the regions you operate in and the accommodations you need to make to comply with state and local tax laws, you can begin to formulate a plan for implementing the right software and tech for your business.
For example, Internet of Things (IoT) technology can make it easy to scan and track data while in the field. You can then seamlessly connect this information with your office network to create a comprehensive picture of your entire process.
2. Adopt self-service and direct deposit.
Then, it helps to give your workers the tools they need to properly manage their own data. From W-2 information to hourly rates of pay, a self-service mobile app can accommodate the needs of construction workers and allow them to seamlessly track their schedules and info.
Find and implement a mobile portal that allows construction workers in the field to view all their employee information in one convenient location. Ideally, this app should allow workers to assess PTO hours, request pay stubs, update tax information and even add and edit their direct deposit info.
With direct deposit, you no longer have to deal with the issue of employees wondering where their paycheck is or the many problems that can accumulate with paper checks. Instead, the correct amount due will automatically hit your workers’ bank accounts adjusted for the tax information that they entered themselves. This takes much of the effort out of the hands of payroll managers and HR workers.
3. Incorporate a helpful software service.
Software-as-a-Service (SaaS) is a growth industry expected to hit $220 billion in value by 2022. With all the benefits that the right software platform can offer your payroll department, you should be on the lookout for an effective service.
There are software options out there on the market directed specifically to address the needs of construction payroll in all its complexity. From managing tax compliance state-by-state, to automatically adjusting pay scales and withholdings based on employee information, these info hubs can make it possible to streamline and automate much of the payroll complexities that you’ll face.
Additionally, these cloud services are built to comply with data privacy regulations and tax compliance so that you can easily and conveniently manage your workforce.
4. Consider Earned Wage Access.
Additionally, you can further streamline your payroll operations by taking advantage of the Earned Wage Access (EWA) trend. With EWA, workers are paid daily for the work they complete.
Software makes this possible with the assistance of PGS tracking and mobile scheduling. Through EWA, you'll no longer have to deal with pay stubs at a fixed interval, meaning no more bi-weekly push to correct all payment issues. Instead, workers are paid agreed-upon fees for precisely the time they work on the days they work.
Such a system can be difficult to manage with a large workforce since you still have to verify proper payment amounts. However, it can also encourage employee attendance and be a huge draw for potential workers looking for flexibility and convenience in their pay schedules.
5. Ensure compliance and transparency.
Finally, consult with tax and legal professionals to ensure that all your intended payroll innovations comply with local codes. No one needs the added complexity of dealing with legal challenges due to pay discrepancy issues.
Study regulations on a state and local basis and find software that guarantees compliance with these regulations. At the same time, maintain a policy of transparent communication with your employees to ensure that all payroll issues can be addressed in a timely and accurate fashion.
Securing a Compliant, Streamlined Payroll
By following these tips and strategies your payroll system can become the streamlined and highly automated process that you've always dreamed of. This will save you time, money and effort all while providing employees with the flexibility and convenience they're looking for. In an era of labor shortages and high construction costs, securing a compliant and streamlined payroll is the least you can do to make life easier on yourself
Explore the tools available to you and develop a better system for all your payroll operations.