A construction payroll service should have all the features necessary to handle the unique challenges of the construction industry. A construction payroll service should provide detailed labor cost reports and be able to generate custom reports for each job. Additionally, payroll systems should have integration with job costing accounting software. These features are particularly important in construction companies with multiple jobs and differing labor costs.
Managing Union Payroll Codes
Processing union payroll is a complicated process that requires a great deal of patience and attention to detail. Because every union has its rules and regulations for pay rates, benefits, and apprenticeship programs, dozens, if not hundreds, of unique calculations are to be made each time you run a payroll. In addition, each employee’s benefits will vary based on seniority, class, and individual choice.
Managing union payroll is one of the most complex challenges in construction payroll management. Numerous union policies and contract differences exist in different regions of the country, making it difficult to reconcile the different pay rates. Additionally, unions have different overtime rates, time differentials, and leave arrangements. It is common for a construction company to have employees working under different unions in different locations.
Managing Mobile Time Cards
Managing mobile time cards is a great way to reduce payroll errors and save time. Most apps can export the data directly into your accounting software. That eliminates the need to enter data, which can take hours manually. This will improve the accuracy of your time tracking and allow you to provide better estimates for future projects. You can easily track all of your employees’ hours with one device.
Time clock tracking is one of the most important parts of any construction payroll. Because construction workers are constantly moving between job sites, a reliable time clock solution is necessary. The solution also provides you with reports based on prevailing wages.
Integration with Third-Party Time Clock Applications
When hiring the right people, you should use a construction payroll service that can integrate with third-party time clock applications. Traditionally, payroll and timekeeping took up a huge part of a business’s time. But advances in technology have helped construction firms manage their payrolls with ease. Now, you can get the same reporting that HR departments need from a single interface.
An integrated construction payroll service will provide accurate employee timesheets and track the prevailing wage. This is a critical feature for construction firms since it can save them a lot of time. Moreover, an integrated system will reduce the administrative workload by automating payroll tasks.
Integration of Job Cost and General Ledger
Contractors control job expenses by fusing payroll information with modules for general ledger and job cost accounting. The net profit of a job must be calculated automatically by payroll software, together with the labor costs associated with that activity.
A file generated by many payroll software programs can be submitted to the bank or uploaded on the bank’s website. The cost-effective and low-risk method of payment for contractors is direct deposit, which is also convenient for employees.