Payroll is an ongoing source of frustration for many construction businesses. Navigating the complex web of compliance requirements, project cost tracking, and coordination between field teams and office staff can be overwhelming for even the most experienced payroll staff. And as your company grows, the payroll challenges only multiply.

It doesn’t have to be this way. Many of your payroll problems could be a result of using the wrong payroll solution. But how do you know that your payroll solution needs an upgrade? Here are three telltale signs that it might be time to make a change.

1. Double Data Entry is Draining Your Resources

Are your teams spending hours each week manually entering the same data into multiple systems? Logging time into your payroll system, your project management platform, and your accounting software isn’t just a drain on time and resources – it increases the risk of errors that can end up costing your business.

Relying on manual data entry and siloed systems can lead to a host of other issues, including:

• Teams are using inaccurate or outdated information to make decisions.
• Skilled payroll staff doesn’t have the time to focus on strategic tasks.
• Inconsistencies between systems can create nightmares during audits or tax time.
• Pay errors caused by data entry mistakes can damage employee morale and trust.

Modern cloud-based construction payroll solutions eliminate these headaches through seamless integration with the rest of your tech stack. When your payroll system talks directly to your accounting and project management platforms, data flows automatically between them. Time entered in the field appears instantly in payroll, and once approved, flows directly into your accounting system. No more double entry, no more reconciliation nightmares.

2. Compliance Issues Are Keeping You Up at Night

Are you constantly worried about Davis-Bacon Act compliance? Struggling to keep track of prevailing wage rates across different jurisdictions? Having trouble managing both union and non-union payroll requirements?

You’re not alone. These challenges are common when using generic payroll solutions that weren't built for the unique needs of contractors. With compliance requirements that vary by project type, location, and funding source, construction payroll has more complex demands than most industries.

While keeping up with compliance requirements can seem daunting, it’s critical as compliance failures can be costly. For example, incorrect prevailing wage calculations could lead to substantial back pay awards and penalties, while legal fees could quickly add up if a business has to defend wage claims. Construction businesses with compliance violations may even find themselves excluded from future government contracts.

The good news is that construction-specific payroll providers understand the nuance of construction payroll and build compliance tools right into your workflows. A construction payroll system can automatically handle prevailing wage calculations, certified payroll reporting, union benefit tracking, multi-state documentation requirements, job costing and more. It can also flag any potential issues before they become a problem so you can breathe easy knowing your compliance requirements are under control.

3. Field-Office Communication Gaps Are Hurting Productivity

Is your payroll staff spending countless hours chasing down missing information or correcting timecard errors? Are your project managers struggling to get real-time labor cost data? It’s critical for field and office teams to be in sync, but too often there’s a disconnect.

Poor communication between the field and the office is not just an inconvenience – it can lead to serious problems. For example, if teams are submitting delayed or inaccurate time cards in the field, it could result in payroll errors in the office. When project managers are making decisions based on outdated labor cost information, it could impact the profitability of the project. And if teams aren’t staying on top of their communications, they could miss safety alerts and important announcements, creating potential liability issues.

Modern construction payroll solutions bridge this communication gap with features designed specifically for construction workflows. Mobile time tracking apps let workers clock in and out right from the jobsite. Time entries are automatically coded to the correct cost centers, eliminating confusion and errors. And supervisors can approve time cards from anywhere, while payroll staff can process them without double data entry.

Teams can quickly generate professional daily reports with photos right from their phone. They can also track equipment usage, materials delivery, and other project details. Teams can even access paystubs, update HR information, and submit time off requests all from their mobile device.

Messaging capabilities also ensure that the right people get the information they need, when they need it. Project teams can instantly share updates about schedule changes or delays. HR can automatically notify individual workers about missing documentation or certification renewals. And safety alerts can reach affected crews immediately. Using a construction-specific cloud solution creates a seamless flow of information between the field and office, improving accuracy, efficiency, and communication across your entire organization.

Making the Switch: What to Consider

If these payroll pain points resonate with your current situation, it's time to consider upgrading to a modern, construction-specific payroll solution. Cloud-based solutions not only deliver anytime, anywhere access and real-time insights, but they provide the flexibility to scale with your business needs.

When evaluating a new solution, the most essential features to look for include:

• Construction-specific
• Cloud native
• Seamless integration with your existing systems
• Built-in compliance tools
• Mobile capabilities (including time tracking, scheduling, HR& benefits, and messaging)
• Automated workflows
• Custom reporting

It is also important to take the time to time to assess a vendor’s training and support options and understand the data migration process. And be sure to look for customer testimonials. It’s a good sign if a vendor has customers like you that are happy with the solution. Once you find the right fit, it is critical to set aside the time to implement and train on the new solution. Transparency and clear communication throughout the process can help bring your teams on board and set your business up for a smoother transition.

Looking to the Future

As the industry navigates challenges such as a skilled worker shortage and complex regulations, having the right technology in place is increasingly critical. And by investing in a modern, construction-specific payroll solution today, you're not just solving current problems – you're positioning your business for future success in an evolving digital landscape.

Miter's all-in-one platform was built specifically to solve these construction payroll challenges. By combining payroll, HR, benefits, and workforce management and integrating seamlessly with your ERP, Miter eliminates double data entry, automates complex compliance requirements, and seamlessly connects field and office teams. Companies using Miter report reducing time spent on payroll by up to 85%, while gaining real-time insights into labor costs and ensuring compliance. Ready to transform your payroll processes? Visit Miter today to see how our construction-specific solution can transform payroll from source of frustration to a strategic advantage for your business.