The Benefits of a Construction Payroll Service for Construction Professionals

by Alex Gray
June 14, 2024
Read Time: Less than 8 Mins
Last Modified: June 24, 2024

With all the complexities involved in managing construction payroll, not to mention the time required to create a construction payroll report, weekly payroll processing can become a logistical nightmare.

According to The U.S. Department of Labor’s calculations, one hour is required to create a payroll report of eight employees per week. This means that a company with 200 employees will need to spend almost 24 hours creating weekly payroll reports and processing payroll for any number of employees takes valuable time away from your other tasks. That’s why, no matter the role or responsibility in your company, outsourcing payroll to construction payroll services can have tremendous benefits for a construction company.

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By using a construction payroll service, you can help your business increase efficiency on the jobsite. Whether you’re a payroll manager or an owner, we’re going to walk through the ways a construction payroll service can help your business.

Key Takeaways for Construction Payroll Processors:

  • Construction payroll services can help streamline complex processes by handling everything from wage calculations and tax filings to direct deposits and government reporting.
  • With a construction payroll service automating your calculations, you can increase accuracy across processing and reporting.
  • Construction payroll services can consolidate payroll data, eliminating manual entry and reducing double entry.
  • Oftentimes, a construction payroll service can sync your payroll information with your accounting for better financial management.
  • Using a payroll service designed specifically for construction businesses can not only significantly increase efficiency because the payroll experts understand industry expectations.

How Can a Payroll Service Help Your Construction Business?

A construction payroll service can help streamline complex processes, minimize errors, and save valuable time. These services handle everything from wage calculations and tax filings to direct deposits and government reporting. With experts handling every step for you, your company can be confident that all employees are paid accurately and everything is compliant with industry regulations.

Below, we’ll break down how using a construction payroll service can benefit your role.

1. Construction Payroll Managers

As a construction payroll manager, payroll processing can be a real burden. You juggle complex calculations with the demands of governmental reporting requirements while also ensuring your workers are paid on time. But, by using a construction payroll service, you can automate payroll calculations for precise payroll processing and simplified tax filing. You upload the timecards and at the click of a button, the service does everything for you.

Construction payroll services also come equipped with expertise in navigating the intricacies of construction payroll, including fringes, multi-state payroll and certified payroll reports. This reduces the risk of errors and ensures compliance with complex regulations.

2. HR Managers

When you’re a construction human resources manager, you can use a construction payroll service to save time on repetitive tasks like data entry. Since these are handled by the service, it helps reduce manual entry and mitigate the risk of errors.

A construction payroll service also makes managing employee hours, overtime, benefits, onboarding, and vacation/sick leave tracking easier — since documentation is saved and programmed directly into the system. And a payroll service offers enhanced reporting capabilities so you can generate comprehensive reports on labor costs, employee fringes, and tax deductions.

3. Construction Project Managers

For construction project managers a payroll service makes it easy to collect timesheets, calculate wages and ensure compliance. The accurate and timely payroll data helps in budget management and cost control for projects. This can lead to improved resource allocation and financial forecasting.

A payroll service allows for easy access to labor cost reports for better project planning and execution. Project managers can leverage this data to track expenses, identify areas for cost optimization, and ensure project budgets stay on track.

4. Finance Managers, Accountants and Controllers

When you’re in the role of a finance manager, accountant, or controller, outsourcing construction payroll to a dedicated service offers a range of benefits. First, payroll services can generate comprehensive reports that break down labor costs by project, employee, and tax category. This improved visibility allows you to identify areas for cost savings and make data-driven decisions regarding project budgets and staffing allocation.

Additionally, with a payroll service’s enhanced auditing capabilities, finance managers and controllers can simplify the reconciliation of payroll expenses within accounting records. Most payroll services will also offer integration capabilities with construction accounting software. This integration allows accountants to sync their payroll data with the company’s budget to simplify tax preparation and filing.

5. Compliance Managers

In the role of a construction compliance manager, you have to ensure every project adheres to a labyrinth of regulations and tax codes, while also maintaining compliance with labor laws. Payroll mistakes can trigger hefty fines and penalties; however, payroll services have the expertise to navigate the intricacies to minimize errors.

Construction payroll services help manage Davis-Bacon jobs by specializing in certified payroll reporting, prevailing wage tracking and the managing of union agreements. As well, payroll services generate other detailed reports that track labor costs, employee benefits and tax deductions to prepare reports for audits and demonstrate adherence to regulations.

Furthermore, construction payroll services stay updated on the latest changes in tax codes, wage laws, labor laws, multi-state taxes and industry standards, effectively minimizing the risk of legal issues and penalties.

6. Construction Field Managers and Jobsite Supervisors

For field managers or jobsite supervisors, a payroll service can reduce manual data entry with online timecard submissions straight from the field. You also get access to comprehensive payroll and financial reports for strategic decision-making, which improves profitability through better cost control and resource management.

7. Construction Company Owners and Operators

Using a construction payroll service can be extremely beneficial for construction company owners and operators. With access to comprehensive payroll and financial reports for strategic decision-making, you can improve profitability with better cost control and resource management.

Outsourcing construction payroll to a dedicated payroll service also allows you to access real-time data with detailed reports that break down labor costs by project, employee, and tax category. This real-time data empowers owners and operators to identify areas for cost savings, optimize project budgets, and make informed decisions.

Why Do You Need a Construction Payroll Service?

No matter your role, outsourcing payroll to a construction-specific payroll service can offer significant advantages for a construction company, including increasing business efficiency. Recognizing how these services can provide an efficient system that saves effort, time, and money can help simplify the payroll process.

1. Save Effort — With a construction payroll service automating calculations, you can save effort by increasing accuracy across processing and reporting while simplifying the complexities of construction payroll management.

A payroll service automates pay rates and taxes for as many trades, jobs, and jurisdictions as your company needs.

These services can also pay checks, submit direct deposits, create W-2s, file taxes and calculate fringe benefits for all employees saving valuable effort on payroll tasks.

2. Save Time — Construction payroll services can help you save time by consolidating payroll data, so information only needs to be entered once. With your construction payroll data in one place, the software will filter the data to produce automated reports in multiple formats.

A payroll service will offer multiple reporting options including specialized reporting options to meet government regulations like certified payroll, EEO/minority, union and more.

These reports can be accessed directly after each pay period, reducing compliance risks.

3. Save Money — Additionally, outsourcing to a construction payroll service can help you save money. By using a payroll service, you can calculate labor and burden dollars accurately allowing you to sync your payroll information with your accounting for better financial management.

Most payroll services offer integrations with popular accounting software and time tracking solutions for streamlined workforce management. Services also offer expert in-house payroll support teams to help your company maintain accuracy.

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Improve Your Construction Payroll with Payroll4Construction

Using a payroll service designed specifically for construction businesses can not only significantly increase efficiency but also ease financial management and allow for significant business growth. Streamlining the payroll process allows you to focus on your role, saving effort, time, and money for the whole company.

When considering a construction-specific payroll service, check out Payroll4Construction. We can simplify your most challenging payroll and stay up to date on government regulations. Whether you need to process multi-union payroll with deductions and fringe tracking, create print or electronic certified payroll reports, or submit timecards in an online portal, we can help.

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