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Find Out 3 Solutions for Saving Construction Payroll

Updated: May 6

Payroll for construction is always a problem that contractors always face. Even if you have other issues to worry about, employee compensation and employee salaries are always among your priorities. After all, salary management will directly affect the relationship between the company and its employees. This is also one of your biggest expenses, and it will also affect your company's cash flow.

Because it directly affects the cash flow of construction companies, construction contractors need to be especially careful. Because if you make a mistake in the payroll, the revenue of the construction business will be cut more than you imagine. This means that the construction contractors did not manage their construction accounts well and as a result, you will not make any profits.

Here are a few ways to help you save on construction payroll that we've learned over the course of working with many construction contractors.

1. Automated Timekeeping for Construction Payroll

You cannot control the interest rate for building finance. Still material prices. It's still the weather. If any of these variables don't work for you, it could have a serious financial impact. More efficient building payroll is one of the areas where you can minimize these costs. By eliminating paper schedules, you can reduce the cost of running payrolls. How much money can be saved with automatic timesheets?

If their scheduled start time is 8:00, here's what they'll write on their time card. Do you think these late workers recorded 8:07 or 8:15 as their start time? Especially if they fill in their time card at the end of the billing period. Let's say you have 50 full-time employees, each working 15 hours. If ten percent is seven minutes per night, that's 35 minutes of labor you pay but don't receive. Based on 260 business days per year, that's $ 1400.

Construction Payroll

Using automatic timing systems can eliminate employee prejudices. Since the recording time of the digital time card is the shortest, combining it with scheduled execution can eliminate early time without delay. Certain time systems via mobile applications also include GPS tracking to ensure that employees are actually at work. Automatic timing can also reduce the labor and management costs associated with manual timing.

2. Optimize employee shift schedules.

If contractors are unable to schedule an optimal shift schedule this could result in increased costs and additional waste of construction payroll.

Especially with large construction projects with higher construction time requirements, ineffective staff shift scheduling faces a large cost loss for the construction contractor.

A well-planned schedule is required to run smoothly and efficiently on site. When employees know when to work and to what extent they should work, it gives them a sense of responsibility and can work best. Additionally, it reduces confusion caused by too few employees or too many employees during the peak periods. Consider using automated scheduling software to optimize schedule by site, by project, or the crew.

3. Outsourcing payroll service

Hiring employees with a difference in timing and work is very common in construction. Due to the different working statuses, the legal issue is also a headache for construction contractors.

Likewise, payroll is a time-consuming process. When working in a construction company, accountants can have difficulty keeping up with constant payroll cycles and delays in paying customers, which are common in the industry. It is very easy to miss deadlines, errors in calculating exemptions, or miss new payroll rules.

Choosing an outsourced construction accounting service why not?


Construction Finance


It can be said that for large construction enterprises, having a payroll accounting department is very common, but for small businesses, the construction contractors will spend a large amount of money to maintain the department. Instead, an outsourcing service specializing in accounting will save costs for small construction businesses because of the professionalism and accuracy of accounting services.

Signing a contract with an outsourced company that specializes in payroll accounting can also reduce the risk of payroll errors. These mistakes can be punishable, and costs can be very high, especially when the IRS is involved. Ultimately, outsourcing can save you time researching regulatory changes. This is especially useful for the welfare department, which handles benefits and deductions in the payroll.

Construction Cost Accounting helps you solve construction payroll problems, we are the leader in accounting services for the construction industry. Contact us now for a free consultation.


Are you ready to get help, or are you still not sure if you need help to run your construction business? Contact Construction Cost Accounting to have a free 15-minute consultation!


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