The construction industry is booming, and with the increase in demand for skilled workers, it’s no surprise that construction payroll processes are feeling the pressure. Fortunately, there are several ways to untwist this process and make things easier for everyone involved.

By deploying a self-service model, using cloud-based human capital management tools, and other automation software, you can untwist your construction payroll processes to avoid costly mistakes, streamline the process and ensure proper tax payments are made.

This blog post will explore common ways you can work things out in the construction payroll processing.


1. Deploy a Self-Service Model

One of the best ways to untwist your construction payroll process is to implement self-service tools for employees. These are simple portals that allow them to clock in and out, update their personal information or record their absences without filling out timesheets.

Time tracking software provides incredible amounts of data about your business operations, so there’s no reason to make employees track their time manually.
Implementing a self-service tool can help reduce mistakes and verify the information your managers rely on is accurate, resulting in more smooth processes.


2. Cloud-Based Human Capital Management (HCM) Solutions

Adopting cloud-based human capital management (HCM) solutions in construction enterprises can also help in untwisting the payroll processes.

The benefits of HR cloud solutions include automation, integration with other business apps, and seamless data management.

Working in tandem with a self-service portal, HR cloud solutions will play an essential role in streamlining construction payroll processes.

Some of these providers will provide an answer to the most common payroll questions. Their online websites will capture a spectrum of queries you may like to understand better.


3. Automate Tax Calculations

Tax calculations are essential for construction companies, but they can be an absolute headache to do manually. When every pay period comes, it’s time to calculate withholdings and submit payments.

However, this calculation depends on several different factors, including hourly vs. salaried pay rates, bonuses, and commission payments, among other things.

Several tax calculation tools on the market aren’t too expensive to buy and can save you a lot of time and money in the long run by automating your calculations.

They help ensure you’re not paying too little or too much, and they can also eliminate any mistakes made by manually calculating taxes.


4. Be Transparent: Clear Communication Improves Construction Payroll Processes

Another effective approach is to be transparent about how you are communicating with your employees. Clear communication helps reduce the chance of mistakes and ensures workers feel like they are getting all the information they need. This is important in making you competitive.

One aspect of clear communication in construction payroll processes is providing regular updates about the status of their project, including any potential risks or delays.

This transparency will help reduce anxiety in employees because they know what to expect in terms of timeline and deliverables. It also helps them plan for their own lives, alleviating the stress that might otherwise lead to procrastination.


5. Use Construction-Specific Payroll Software

Construction-specific payroll software can help your business manage taxes, commissions, bonuses, and more. This type of software is designed to meet the unique needs of construction industries. A lower-cost option for construction companies is to use a cloud-based solution.
You have the flexibility to pay employees with direct deposit or by check for less than $250,000 per year.

Your construction payroll process will be easy because, with many cloud-based solutions, you won’t have to be burdened by maintaining the necessary hardware or staff for this process. You’ll be able to automate tax calculations and stay compliant with federal, state, and local laws.

In conclusion, there are ways to help with untwisting your payroll process and, for instance, adopting cloud-based human capital management. It brings more transparency and reduces anxiety in employees because they know what to expect as far as timeline and deliverables.

This is an example of how technology can create efficiencies for construction companies that could be leveraged to drive higher profits or decreased costs over time. Automation of tax processing and finding self-serving models is also vital.