Payroll is often one of the most complex administrative tasks for a construction firm. At any given time, you may have employees at differing pay rates working across a range of job sites. By streamlining your payroll process, you will save time and ensure that employees are getting paid accurately and on time.
Implement Digital Time Tracking
Payroll processes done by hand, such as moving data from timecards to payroll software, are time consuming and allow for error. Try implementing digital time tracking in place of handwritten timecards and spreadsheets. This will help to slash time, cut down on manual error, and eliminate the task of interpreting handwriting. Catching and fixing errors, like missing hours or break time, is also easier with digital time tracking.
Many time systems have progressed in modern offerings such as geofencing, which improves labor cost data and employee accountability. Construction firms that do government work can log work classifications, verify wage decisions, and manage reporting more efficiently.
Establish a Reliable Payroll Checklist
Make a step-by-step checklist that includes each task in the payroll process. These tasks typically cover:
- compiling hours
- double-checking data
- pay and withholdings
- distributing funds.
Firms that do prevailing wage work must also manage:
- verifying wage agreements
- work classifications
- handling fringe benefits.
Cross off each task as it is completed and make a note of any problems that cropped up, then you can review your process and make changes for improvement.
If your company uses multiple platforms for various administrative tasks, you are likely creating more work and more room for error. For instance, be sure you are using a digital time and attendance system that exports out to a payroll and reporting system. This eliminates the extra work it takes to transfer the data. There are also platforms designed to handle the specific tasks associated with prevailing wage work.
Limit Preventable Mistakes
With a lot of variables to keep track of in the payroll process, your goal should be to focus on limiting preventable mistakes. Try making a list of the most common payroll mistakes you’ve noticed, and double check those areas before finalizing payroll.
The payroll process is easy to overlook until something goes wrong and you waste valuable time and resources trying to correct errors. An efficient and accurate process can promote compliance, reduce risk, and lay a foundation for growth.