The construction industry is quite complex and unique in its operations. A widespread workforce, ample compensation structure, and multiple employment rules and work classifications necessitate smart systems to make payroll management easier.
However, effective payroll management that contributes towards higher worker satisfaction and engagement often ends up being a challenge.
Of course, most construction companies run their payroll on a weekly or bimonthly basis, and payroll managers are often burning the midnight oil to manage the multiple challenges of construction payroll management. For the payroll manager, managing the payroll manually becomes an even bigger task when holidays fall on Mondays (as indeed, most do!).
Major holidays like Memorial Day, Labor Day, Thanksgiving, etc., are all on long weekends. The long weekend for relaxation is then the cause of more worry and stress in the payroll manager’s life.
The Bane of the Long Weekend for Payroll Managers
So, is it that payroll managers hate long weekends?
Some part of this statement is true. Payroll managers lie awake at night and hate long weekends, not because they are workaholics or do not enjoy time off. It is more because of the existing complexities the long weekend adds to their already challenging tasks.
The effort taken to manage payroll and to do all the extra math just because of an added day off at the beginning or end of the week doesn’t seem worth the trouble.
Some key challenges are:
- Lacking technology adoption leads to more manual processes, which makes payroll management more complex. Data regarding each project, work progress, worker schedules, etc., is documented manually. Payroll managers have to spend a lot of time gathering all the data points and recalibrating them in the event of long weekends.
- Payroll managers have to consider the mandatory wage structures and the prevailing wage rates according to federal jurisdictions or state regulations. Since construction projects are often spread across locations, payroll managers must account for the payment periods and working hour calculations that may have internal variations according to the regulatory norms.
- Construction companies also have a high proportion of contract, seasonal, or temporary employees who are not on a fixed payroll. This large contractual workforce could also have varied pay grades and wage codes. There are variations in payment contracts as well. Some wages might be calculated on an hourly basis and some daily.
- Payroll managers also must ensure payroll compliance. Due to this, they must wait for reports from different departments to begin calculations. They need to ensure that all the payroll data is clear and transparent and provides clear traceability. Accounting for compliance reporting, considering union requirements, and presenting information to meet certified payroll requirements become more complex with these long weekends. The reporting challenge scales astronomically if executed in multiple states. All because of one long weekend.
Simply put, a long weekend just means more work for the payroll manager.
Payroll managers in the construction industry badly need robust digital payroll management systems that streamline all facets of construction payroll management.
A comprehensive payroll management platform provides real-time access to accurate project information at every stage of work and digitally links processes and people in an organization. Payroll managers need solutions that help them effectively:
Lower Cognitive and Manual Load
Spending time reconciling manual paper records when managing employee information increases cognitive load, reduces efficiency, and increases error rates. As such, a construction payroll management platform is beneficial as it assists in automating the tracking of employee time and pay rates.
Access to real-time data exchange between the job site and the back office is a bonus. This makes the lives of payroll managers easier and makes it simpler to get exact salary figures without more heavy lifting.
Simplify Union Payroll and Certified Payroll Reporting
Construction payroll management platforms help payroll managers address all the payroll complexities within the industry, such as union payroll and certified payroll reporting. Such a solution tracks hours and payroll with no issues and accounts for the federal and state requirements of the project.
A comprehensive payroll management platform helps overworked payroll managers manage payroll easily for states and unions without the need to re-enter rates, fringes, and dues. It allows payroll managers to accommodate different pay rates, deductions, tax codes, payroll types, and other features.
Further, such a solution provides ‘anywhere, anytime access’ to real-time data and automates calculations. Managing fringe benefits, mass earnings, compensation, overtime, union deduction, wages, or multiple labor classifications becomes super simple with a payroll management solution.
Since a payroll management solution cuts out time-consuming, repetitive, and tedious manual work, it makes some space for payroll managers to let their hair down on those long weekends.
Accelerate Productivity and Elevate Efficiency
Automation capabilities of payroll management platforms play a big role in driving up the efficiency and engagement levels of payroll managers. Payroll managers can process weekly, bi-weekly, semi-monthly, or monthly payroll easily and accurately with automatic calculations. There is no more going through rows of data and manually calculating payroll with a payroll management platform in play.
With such a solution, the payroll manager can not only manage the one-off long weekend but also manage state payroll taxes and track overtime, planned time off, and sick leave balance with equal ease, agility, and accuracy.
Along with the above, a robust payroll management platform allows payroll managers to customize pay schedules and provide reports, pay rates, deductions, tax codes, etc. A well-designed platform addresses the security and confidentiality needs of payroll systems. It secures sensitive employee information, provides role-based access, cloud-based threat detection, etc., and ensures compliance with built-in compliance safeguards, automatic tax calculations, and easy 940 and 941 reporting. These not only drive compliance but also make payroll processing prompt and stress-free.
So, do you think that payroll managers hate long weekends? If you want to streamline payroll management, get deeper business insights, and elevate employee satisfaction with prompt payments — regardless of holidays, leaves, or long weekends, then connect with us today. Your payroll managers and your business will thank you! That is our promise!