BenefitMall serves a lot of different industries across our extensive client base. One industry that does not see a lot of action, even though it should, is the construction industry. Outsourced payroll services are as important to construction companies as they are to retail businesses, restaurants, manufacturers, and light industrial enterprises.
Construction is somewhat unique in how it handles everything from payroll to workers’ compensation. Much of this has to do with the proliferation of workers classified under different rules of employment. The difficulty of applying all of these rules correctly is evidence that construction companies would benefit greatly by outsourcing payroll.
Do you own a construction company? Have you been considering working with a payroll services firm to handle back-office functions? If so, below are five reasons for making a move.
1. Legal Compliance
It is not uncommon for construction companies to hire workers with different employment statuses. Salaried and hourly employees may make up the base of on-site labor as well as filling out the office. But contractors and subcontractors are also likely to be used at some point. Keeping track of all of this can be a compliance nightmare.
As experts in payroll and taxes, we do more than just plugging numbers into a basic payroll calculator. We know the law and how it applies to workers in all employment classes. We also know how to work within the rules to guarantee legal compliance for our clients.
2. Reduce Labor Costs
Construction is a labor-intensive industry no matter how you slice it. Therefore, it benefits construction company owners to limit office labor in favor of putting more workers on the job site. One way to accomplish this is to outsource payroll. Working with a payroll services provider eliminates the need for any kind of payroll staff while also simplifying back-office tasks.
3. Increase Your Cash Flow
One of the biggest challenges in construction is making sure laborers get paid on time. The construction company must wait to get paid itself, so a lack of funds due to poor accounts receivables can lead to paychecks that do not arrive when they should.
Our construction-specific solution increases your cash flow by making sure you get paid more quickly. You'll have greater cash resources for new jobs, your workers will get paid as promised, and your business will maintain all legal compliance. Furthermore, designating funds to a payroll account removes the temptation to use the money for other purposes.
4. Accurate Reporting
A big part of payroll is reporting. But not just a few things here and there; you have local, state, federal and union reporting obligations to worry about. Our reporting solutions are fully certified for your protection, plus we offer out-of-the-box union reporting with true labor costing and manning reports.
A failure to file accurate reports is a good way to land your company in trouble. It will never be a problem when you use the BenefitMall solution specifically designed for the construction industry.
5. Reduce Stress
Lastly, construction company owners have enough to worry about without needing the additional stress of handling payroll. Outsourcing payroll immediately eliminates that stress. This one reason alone has been the impetus for many of our clients signing up for services.
The construction industry offers special challenges in relation to payroll and taxes. If your company still does things in-house, we invite you to consider the payroll services offered by BenefitMall. Partnering with us can reduce your labor costs, guarantee legal compliance, and relieve the stress that comes with handling payroll yourself.
We currently partner with more than 3,500 tri-state construction companies who have come to rely on us for great value and trustworthy service. We want to be your payroll and reporting partner as well.