How Integrating Payroll with Time Tracking Enhances Efficiency

Labor hours make up a significant amount of expenses for the construction industry. With precise labor hours comes compliance with government regulations, satisfied workers and most importantly, accurate payroll. And while having accurate timecards is important, making sure your employees are paid on time is crucial.

According to LinkedIn, approximately one in four employees – 24 percent – will look for a new job after the first payroll mistake, while another 25 percent will seek new employment after the second issue. Using a mobile time tracking app is great for ensuring accurate labor hours, but to guarantee your workers don’t leave after a payroll mistake is by making sure they are paid on time with precision.

However, inaccurate payroll can be avoided with a construction-specific payroll service that integrates with your time tracking app. Not only does it provide accurate paychecks, but it can also help to maintain compliance with federal and state regulations. We’re here to walk you through some of how integrating your payroll with time tracking can enhance efficiency.

Key Takeaways:

• By integrating your time tracking solution with a construction-specific payroll service, you can ensure that payroll calculations are accurate and compliant with industry standards.
• Employee time data can be automatically synced with the payroll service, eliminating the need for manual data entry and reducing the risk of errors.
• Many construction-specific payroll services offer employee self-service portals where workers can access their pay stubs, view their time records and manage their personal information.
• A construction-specific payroll service that integrates with your time tracking app offers scalability and flexibility to accommodate changing workforce sizes and project requirements.
• Time data is automatically imported into the payroll system, where it can be used for calculations and reporting to reduce the administrative burden on payroll staff.

What are the Benefits of Integrating Time Tracking and Payroll?

Synching your time tracking and payroll secures a completely streamlined payroll process. With the labor data from the time tracking software, the payroll system can calculate employee pay, including deductions and fringe benefits, to send out accurate paychecks. With the two databases can communicating, you can enable automated data exchanges and synchronization across systems.

Industry-Specific Functionality

A construction-specific payroll service is tailored to the unique needs and requirements of the industry. It understands the complexities of construction payroll, such as union regulations, multi-state wages and prevailing wage rates. By integrating your time tracking solution with a construction-specific payroll service, you can ensure that payroll calculations are accurate and compliant with industry standards.

For example, contractors often have multiple workers, on multiple jobsites, with multiple wages and multiple pay rates sometimes even in multiple states. With a payroll service familiar with the complexities of construction multi-rate payroll, contractors can ensure that employees are being paid the correct rate.

Seamless Data Transfer

With your mobile time tracking app and construction-specific payroll service communicating, you can ensure a seamless transfer of data between the two systems. Employee time data captured through the mobile app can be automatically synced with the payroll service, eliminating the need for manual data entry and reducing the risk of errors.

For example, if your time tracking solution offers features like geofencing, GPS location tracking or pin entry to eliminate buddy punching. These features can be extremely beneficial for a payroll service to process payroll as they can guarantee accuracy on employee timecards.

Streamlined Processes

With a payroll service, payroll processing is completely streamlined. The data collected from your time tracking mobile app is automatically imported into the payroll system, where it can be used for calculations and reporting. This reduces the administrative burden on payroll staff and ensures that payroll is processed efficiently and accurately.

An integration of this scale allows for contractors to build a complete payroll system. Having a solution that can onboard employees, track their time accurately, process payroll quickly then immediately uploads their data into your budget streamlines the process greatly. This can allow contractors to save time, save money and increase efficiency on the jobsite.

Enhanced Compliance

A construction-specific payroll service is designed to handle the unique compliance requirements of the construction industry, such as prevailing wage rates and certified payroll reporting. By integrating with your time tracking app, the payroll service can automatically apply governmental regulations to ensure all payroll calculations are compliant.

If your time tracking solution can virtually capture employee signatures on timecards for unlimited pay periods, this can be used to significantly increase efficiency. Managers can allow workers to confirm their hours are correct within the system, allowing the payroll service to access labor data quickly.

Employee Self-Service

Many construction-specific payroll services offer employee self-service portals where workers can access their pay stubs, view their time records and manage their personal information. Integration with your time tracking solution allows employees to access this information from their mobile devices, improving transparency.

Scalability

As your construction companies grow and expand, you need a payroll solution that can scale with it. A construction-specific payroll service that integrates with your time tracking app offers scalability and flexibility to accommodate changing workforce sizes and project requirements. Whether the company is hiring additional workers or taking on larger projects, the payroll service can adapt to meet evolving needs.

What are the Best Practices for Integrating Payroll and Time Tracking?

While integrating your time tracking with a payroll service can reap great benefits, it’s essential to follow best practices to ensure a smooth transition:

• Choose compatible systems: Not all time tracking systems and payroll software are compatible. It’s crucial to choose systems that can seamlessly integrate with each other.
• Train your staff: Make sure your staff understands how to use the system and regularly provide training to ensure everyone is on the same page.
• Test the system: Before fully implementing the integrated system, run tests to identify and fix any potential issues.

See How You Can Improve Your Construction Time Tracking with Payroll4Construction and WorkMax

Finding a construction-specific payroll service that integrates directly with your time tracking solution offers several benefits for your construction business, including precise labor cost calculations, compliance with labor laws, elimination of payroll errors and more. By leveraging these benefits, you can optimize operations for reduced payroll costs.

If you’re looking for a time tracking solution that integrates with payroll, consider using WorkMax and Payroll4Construction. With cloud-based features like facial recognition and geofencing, the WorkMax mobile time tracking app collects accurate labor hours from the field in real time. Your timecard data automatically uploads to Payroll4Construction, a construction-specific payroll service that prints, stuff and mails your employees’ checks, submits direct deposits and makes sure taxes are paid on time.