Easier Construction Payroll in Just 4 Steps

by Alex Gray
March 1, 2024
Read Time: Less than 4 Mins
Last Modified: April 27, 2024

There’s a lot to know when running construction payroll. From certified payroll to multi-jurisdiction payroll regulations, contractors have to keep tabs on a wide variety of elements to ensure they’re not only completing it accurately but in a way that complies with local laws and regulations.

That’s why we’ve compiled the top four tips for simplifying your construction payroll to help you run your most efficient and accurate payroll yet.

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Main Takeaways:

  1. Standardize Time Tracking: Implementing a consistent method for tracking employee hours across all job sites reduces errors and disputes, enhances accuracy and encourages adherence to work schedules.
  2. Integrate Payroll with Job Costing Systems: Syncing payroll processing with job costing systems streamlines operations, minimizes double entry, reduces compliance errors and provides real-time insights into labor costs for better budgeting.
  3. Outsource Payroll to Third-Party Services: Outsourcing construction payroll services simplifies the process for contractors by handling tasks such as direct deposits, tax calculations, W-2s and other administrative responsibilities, potentially leading to cost savings.
  4. Use Construction-Specific Payroll Services: Leveraging specialized construction payroll providers ensures efficient and accurate payroll management, including handling certified payroll reporting, construction reporting, union tracking, multi-state calculations and other complex payroll tasks with ease.

Tip #1: Standardize Your Time Tracking

How are your employees submitting their hours? Through paper timecards? Using time tracking software? Buddy-punching? Word of mouth?

Too often, workers in the construction industry submit their hours through a mix of these methods. This can make it difficult for employers to accurately track employee hours, which can lead to frustration, wasted time and inaccuracies.

With a single, consistent time tracking method – one where each employee adheres to the same time-tracking process on each job site – the risk of time-tracking errors and disputes reduces drastically. Additionally, when employees are aware that their hours are being logged properly, they are more likely to adhere to their correct work and break schedule.

Should a contractor choose to invest in a construction time tracking solution, they should seek out a software that integrates with their payroll system to help eliminate both double-entry and costly errors.

Tip #2: Integrate Payroll With Your Job Costing System

An easy way to simplify your construction payroll process is to invest in a solution that allows you to sync your payroll processing with your job costing system. This can help streamline the payroll process by eliminating double entry. It can also help to reduce compliance errors and keep data consistent.

Integrated systems can also help contractors to sync their information in real-time. This can improve budgeting and prevent cost overruns by giving you an idea of your labor costs at any point during a project’s lifecycle.

Tip #3: Skip the Hassle and Outsource to a Reputable, Third-Party Payroll Service

When contractors outsource construction payroll services, they can skip the hassle that comes with completing payroll in-house.

With these solutions, all employees need to do is a one-time submission of employee information. Then they just submit their employees’ hours at each pay cycle. The service will typically take care of everything else. Many payroll services cover:

  • Printing and mailing checks
  • Direct deposits
  • Taxes
  • W-2s

Oftentimes, these solutions are cost-saving opportunities for employers, who then don’t need to worry about calculating rates, manually distributing payments or submitting reports on their own.

Tip #4: Use A Construction-Specific Service

Using a construction-specific payroll service is the key to efficiency. An expert construction payroll provider will have the specialized knowledge needed to complete payroll in a timely, accurate and efficient manner. They’ll easily handle:

  • Certified payroll reporting
  • Construction reporting
  • Union tracking
  • Multi-state calculations

All at the click of a button.

These services will also be able to complete general reporting — including job cost reporting, estimated vs. actual and AIA reporting — with ease.

Between certified payroll, multi-jurisdiction, multi-rate and more, contractors are left with a lot on their payroll plates. Thankfully, a construction-specific payroll provider is equipped to tackle these challenges with ease.

All contractors typically have to do is an initial setup with the provider. From there, just submit timecards and sit back as your employees get paid accurately and on time.

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Consider Payroll4Construction for Your Payroll Needs

Payroll4Construction has the capabilities to provide certified payroll services, handle all standard construction payroll challenges — like prevailing wages, Davis-Bacon, fringe payments, multi-state payroll — and more. With almost 20 years of experience in construction payroll processing, we’re passionate about helping contractors.

If you’re ready to see how we can help simplify your construction payroll, click here to schedule a live demo with one of our experts!

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