How to Simplify Construction Payroll Management

  • Editorial Team
  • News
  • 24 May 2022

Payroll management is one of the most difficult tasks that construction firms undertake. This is hardly unexpected seeing as how workers are spread across different worksites and the crews usually have different schedules. Competent workers are invaluable but managing payroll for a group like that can be very challenging. Typically, workplace managers despise dealing with taxation and W-2 documentation, along with benefits, payroll, and all the other responsibilities that come along with running a company. Managing payroll may not ever be something that you look forward to, but there are ways to simplify the entire process.

Make Use of Technology

If you are still using paper and spending hours upon hours to manage payroll, you are doing it wrong. Nowadays, there are so many tools and apps available to make it easier for you to conduct business. One such app is a mobile time tracking app that you can use instead of paper timecards. With automated time tracking, you will not have to spend your time and energy inputting data. 

There are other benefits of using automated time collection cards for your business. It makes time tracking easier, and since everything is already on the cloud, the sheets are always turned in on time. It will also save you the time that you would otherwise have spent trying to decipher the handwriting of dozens of employees. 

Payroll usually requires that, after deciphering the handwriting, you punch in the data which can take quite a while. With a mobile timecard app, you can simply send the sheet to your business email. Mobile timecards are also reliable as they provide accurate data. The GPS location is stamped on the timecards, so you are always aware of the job that the employees are working.

Collaboration is Key

There are a lot of instances when small errors and mistakes lead to problems on payday. You can avoid these issues simply by empowering your employees and collaborating with them. If employees become a part of the process, you will be able to eliminate errors and improve accounting labor tracking. Just as involving employees on decisions about equipment purchases is helpful, this will also prove to be so down the road. 

If managers can collaborate with operators about buying a 140G motor grader and discuss if it is a good decision to buy used graders, they can also work with them on payroll issues. Instead of making it a single office manager’s job to handle the entire weekly payroll process, you should convert it into a company wide effort. By doing so, your employees and managers will have the chance to collaborate and come up with ways to deal with any issues that arise. 

Classification of Workers

Make sure that you classify your construction workers clearly. Are your workers W-2 employees or independent 1099 contractors? Their classification is important. Misclassification of employees can result in expensive fines down the line. There have been cases where companies have had to pay a hefty fine to employees because they were misclassified. 


Construction managers have to deal with so many different challenges including payroll management. The managers have to deal with multiple workers at once and in such circumstances, it is quite difficult to run a smooth payroll process. The whole procedure may be simplified by following a few basic tips. Using the latest technologies, collaborating with each other, and classification of workers are a few basic things you can do to properly manage the payroll process at a construction work site.