The construction industries hit hard by the COVID-19 pandemic at the beginning of the busy season. It was the worst time that every constructor faced. For achieving the lost time back, every contractor is working hard and trying to get projects as more as he can. The number of workers is increasing with the increasing number of projects that result in payroll complexity. Outsourced payroll systems can be useful in these circumstances. These systems can lighten your burden, but they cannot solve all the problems. There exist some payroll challenges that Human Capital Management (HCM) system can't manage. How can we address these challenges? In this article, we'll discuss the remaining payroll complexities and solutions to problems!
Pay Roll Challenges:
Job Costing
Job costing makes it critical to ensure whether your construction business is profitable or not. The labor cost and all the benefits paid through payroll are visible in payroll systems. But these systems cannot access the other expenses such as dental, medical, and 401K that are paid by the employer to different vendors. You would not get real progress until you add these costs also. You need to manually use both ERP and HCM payroll systems and maintain data in both systems.
Union Pay Policies
Union rules contain complex calculations and pay policies that make it a time-consuming and challenging process. Investing a lot of time on manual efforts causes avoidance while taking union jobs.
Union benefits, union deductions, and pay rates are the challenges that union payroll is facing. Union calculations are more complicated when it comes to overtime pay or work under different job roles. Many attendance and time systems do not overcome these complexities that allow employees to make their workarounds manually.
Certified Payroll
Those construction associations that take funds from the government are responsible for submitting their payroll reports. These reports are manually developed by each employee every week. They assume that all these calculations and reports from the job site are correct. If they detect any fraud or misinformation, then the company faces a penalty.
Generating certified payroll reports is a time taking process . If an error occurs while creating a report, then you have to recreate and submit it again. This process increases the chances of an audit and takes your valuable time.
Certified Payroll Reporting is the solution to your payroll complexities
As we know, advanced technologies have made everything much more comfortable. With this technology, you can automate your payroll complexities in construction industries. Points North makes it possible to automate your complex payroll policies and calculations! Certified Payroll Reporting is an online solution specially designed for those construction industries that want to keep their ERP while outsourcing payroll. It provides integration with your current time and attendance to automate the complex policies and payroll calculations.
Nothing to do if you have a Certified Payroll Reporting online solution ! You can handle your many things such as
- Exchange your job cost data with ERP
- You can manage union payroll policies.
- Automate the process of certified payroll and generating reports
How does it work?
At the end of the paying period, the Certified Payroll Reporting software retrieves all the information from the time system, like the time and labor information. It relates the pay rates according to the worker's job, union, and classification. At last, the system calculates the per week average pay rate of all overtime hours, according to FLSA guidelines.
The Takeaway
Like other businesses, construction businesses are also hit hard by the corona-virus. Every contractor is struggling to get more projects. In these circumstances, managing the payroll system is complicated. HCM payroll system can't address all the payroll complexities. In this article, we have mentioned the payroll complexities and how to overcome them. We hope you have understood all the complexities, and the Certified Payroll Reporting online solution, a perfect solution for all the complexities! If you have any queries, Contact Us !
Thousands of contractors throughout the country rely on Certified Payroll Reporting to simplify their prevailing wage reporting, join them today by clicking here to contact us .
