484: Power Up Your Construction Company Payroll Processes

This Podcast Is Episode Number 484, And It's About Power Up Your Construction Company Payroll Processes Payroll is one of those things that starts quite simple. You build your construction business, hire a few employees, and things tick along pretty well. It's straightforward enough to keep everything in line at first, but what happens to most companies is that they grow! However, having an employee is different than when it's just you meeting the client, doing the work, and collecting the money. The dynamics change when you hire that outside person. You need to be even more cautious when considering hiring a friend or family member instead of a stranger because success has a thousand fathers while failure is an orphan! Success or failure could mean choosing between peace and harmony in your personal relationships or giving away a portion of your hard-earned fruit.

Paying must run smoothly as an essential aspect of your construction business. This is a great thing, but it also means that payroll becomes more complicated. Getting paid is, after all, the primary reason that most people come to work.

Here are some tips for managing payroll effectively:

1. Simplify

Payroll is one of those things that can be overly complex, and the importance of simplifying it can't be overstated. Many small and medium-sized companies have quirks about managing their payroll. This can make it difficult for somebody else to step in or train someone new.

Keep things as simple as possible wherever you can. One way to do this is by switching to direct deposit. This will drastically reduce the work put into issuing and tracking payments.

2. Schedule

At least once per year, and preferably more, your payroll professional must take some time to create a payroll calendar. This will allow them to highlight any dates that may cause a lag in your employees getting paid.

It will also allow you to plan for any potential shortcomings or issues arising from holiday closures or oddities in the calendar. Making a payroll mistake is a surefire way to lower employee morale, so it's essential to be aware of these dates ahead of time.

Once compiled, distribute the calendar to your managers to communicate the information to their employees. This will keep everyone apprised of any potential delays in getting paid that may come up.

3. Automate

The computer can be your best friend. Finding the right software to help with payroll can automatically take care of simplifying and scheduling, freeing up valuable time for your payroll specialist.

It also eliminates the potential for human error in payroll processing and creates a crystal clear picture of your finances. Many options available these days are easy to learn and straightforward to maintain.

4. Brush up

Payroll rules and regulations can change frequently and for any number of reasons. It's important to stay informed on any changes in your region and proactively plan for them.

Much time can go into correcting a payroll error, so know what's happening ahead of time to avoid this. With more and more employees being hired remotely, it's also essential to understand any regulations that may pertain to those geographically located in a different area from your construction business.

5. Get help

There comes the point for all growing businesses where they have to outsource their payroll processing; if this is you, congratulations! It is truly a milestone.

There are many options out there as far as hiring a payroll specialist is concerned, and many of them are available online. Choose the one best suited for you without leaving your desk. This takes the pressure off of you to know all the nitty gritty details about payroll processing. By hiring an outside professional, you can be sure that your employees will be paid correctly and on time.

Everything runs smoothly during your regular pay schedule when timecards arrive on schedule. When employees do not turn in their timecards on schedule and expect you to have their checks ready, no worries, we have you covered:

• Process payroll outside your regular pay schedule fast and easy
• Track and allocate garnishments
• Track and report on employee loans
• Track and report on employee reimbursements
• Everything for one flat fee and no long-term contract

Final thoughts

Payroll is most effectively managed when it's simple, straightforward, and coordinated. Prospective applicants must complete a formal employment application and the hiring process before working on the job. When it starts getting tough to keep it that way, it's likely a sign that your company has grown and you're ready for more robust support.

You went into the construction business for various reasons; in most cases, Calculating and Processing Payroll is not one of them. Stop the insanity and let me know how I can help you today.