It’s no secret that payroll tax laws are complicated. In 2021 alone there were an estimated 11,000 jurisdiction tax types and 40,000 proposed rule changes. You don’t need your payroll service adding to the layers of complexity. It’s time to evaluate how you can simplify your payroll process. Here are 5 signs your payroll may need an upgrade:
1. You spend more than 2-3 hours a week on payroll processing. Are you still collecting time cards and entering data manually? Does your payroll system connect the field to the office? How long does it really take to accurately review the payroll data?
2. Your payroll system doesn’t compile construction-specific reports. Does your current payroll service produce workers’ compensation audit reports, payroll by job reports, certified payroll reports, and union reports? If not, how long does it take you to produce those yourself?
3. Your payroll system doesn’t integrate with other systems. Does your current payroll service integrate smoothly with your time tracking system, accounting system, or LCP tracker? How about state agencies like the Department of Labor?
4. Workarounds are the norm, not the exception. Are you setting up fringe benefits as miscellaneous pay and deductions? Are you unable to track taxes automatically by job location for federal, state, and local taxes?
5. Your payroll software doesn’t track job costs. Are you able to get a true labor cost with burden for taxes, workers’ compensation, and fringe benefits? Does your payroll system send data back to your accounting software with the appropriate job cost or are errors a regular occurrence?
If any of these describe your situation, it may be time to upgrade your payroll system. Choose human resource technology that’s robust and easy to navigate. Support your business without creating complications or more work for your team. Look for tools that are cloud-based, mobile-friendly, and integrate easily.
Above all, choose a payroll provider who understands the construction industry. When you’re in the middle of an issue is not the time you want to be educating your payroll provider on the construction industry.
Remember, your payroll process should be working for you, not the other way around. That’s why we created ConstructionPayroll.com. ConstructionPayroll.com is designed to address the unique needs of construction business owners, with multi-state, multi-rate, and multi-trade wage calculation capabilities, flexible employee pay options, and the ability to capture job costs, labor assignments, and worker compensation classifications with precision and accuracy.
Not sure if it’s time to upgrade? Take our free Payroll Assessment to see if the time is right for a new payroll solution.