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  • 4 Payroll Tips to Make Your Construction Business More Efficient

    Payroll processing is not exactly the most exciting part of running a business. Taking care of taxes, gathering W-2 paperwork, insurance, and all sorts of complexities with the payroll system is a task that many leaders dread. 

    In the construction business, it gets even more complicated. Here, you have employees on different sites with different schedules and tasks. It’s not easy. The payroll is still expected to be accurate. The last thing you want is an angry construction worker who thinks you paid them less than they’re owed. 

    Below are a few tips that will make the preparation more efficient and accurate so that you can focus more on growing your business and less on getting people paid fairly and accurately.

    1. Reduce Manual Steps

    The problem starts when you have too many manual processes. It can get time-consuming, not to mention full of errors. Some manual methods that make work even more difficult include tracking hours by hand, keeping time manually, and transferring data from timecards to software. These steps are prone to errors and can escalate to more complex problems.

    To reduce errors, it’s wise to move away from manual processes. Implementing a digital time track instead of timecards and spreadsheets enables instant data verification – it makes it easier to track down and fix errors. Investing in payroll software for Construction Company will make it all easier for you when it’s time to pay and is well worth the investment.

    2. Create Processes That Are Easy to Follow

     Many critical steps need to be completed during processing. Some of the steps involved include verifying data, paying and withholdings, and issuing funds. For construction companies dealing with prevailing wage work, additional steps like wage determinations, managing fringe benefits, and work classification must be handled.

    A systematic approach is needed to complete every step. To achieve this, you need a step-by-step checklist that highlights each task in the payroll process. Mark off each step as it gets completed while noting issues that may arise. It is easier to look back later and see where things went wrong when problems occur.

    3. Switch to Digital Time Tracking

    Many mistakes happen at the starting point of the payroll process. Many construction organizations rely on manual and handwritten time tracking methods, which are often prone to errors. Handwritten timecards can be a mess. First, they are time-consuming, especially when transferring data to digital formats. It’s even more complicated when the handwriting is hard to read.

    Switching to digital can solve all these problems. It also makes correcting mistakes easier and data movement between systems even more efficient. Advanced time systems have advanced options like labor cost data, geofencing, and employee accountability.

    4. Technology Unification

    While technology is vital in unifying administrative work, many organizations still use multiple platforms for various tasks. Contrary to the expectation of a more streamlined process, the result of using multiple platforms is more work. 

    For instance, a time and attendance system that doesn’t support exporting payroll software results in extra work in transferring data. As you try to organize across systems, you may just end with more digital clutter than you know how to manage. 

    Companies should consider systems that feed directly into payrolls and platforms designed for specific tasks like compliance reporting to make the process efficient.

    Never Dread Payroll Again

    Payroll processing is a crucial administrative function, yet it is one of the most daunting tasks for any office manager. The task can be more efficient if the process is streamlined by using software tools that make work easier and more accurate. 

    Before you face another payroll day that ends with complaints and errors, invest time and money into tools and creating systems that will make your job easier. 

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