- Eliminating paper forms that your mobile workforce use to capture structured information which is then re-keyed, scanned, posted, or filed where access by the rest of your organization is difficult.
- Decreasing the time and effort to process and transmit service, billing, collection and job-related communication by getting rid of paper documents and manual processes.
- Improve productivity around your deliverables (i.e. blueprints, design drawings, procurement and supply chain orders, equipment logs, daily process reports and punch lists) by digitizing all data and processes.
- Save time, eliminate rework, and increase accountability by removing paper-based documents / processes and introducing content management and email integration to all correspondence / communication.
Caution! Dangerous Roads Ahead for Construction Payroll and HR Administration!
No matter your industry, payroll administration is never a straight and simple path. Yet few businesses face as many curves in the road – or as much red tape – as construction and manufacturing. Stringent Union rules regarding pay rates and fringes, irregular work hours, federal and state laws, as well as immigration issues all conspire to make payroll complicated, challenging and a potential liability.
Fortunately, and perhaps unfortunately, there are as many payroll applications as there are twists and turns in the business process itself. But beware of those curves…because not all apps address the critical requirements of commercial contractors for payroll and human resources administration.
This blog focuses on key features and functionalities that contractors need to succeed.
We’ll kick things off with a review of the fundamentals: Payroll Entry, Data Collection, Processing and Distribution.
Duplicate and inaccurate data are the most common roadblocks of payroll processing. That’s because so many contractors are still stuck in the potholes of paper-based time-sheets and manual processes. These outdated methods to input labor information into payroll systems should be replaced with mobile field time entry collection software, digital forms, digital upload templates and self-service applications…the superhighway system of business processing.
Today’s apps streamline the collection of critical payroll and HR data, and then make accurate and timely information readily available in your payroll system. If your payroll software has any of these capabilities already embedded, congratulations, you’re getting better mileage than most. But even simple apps or digital forms can replace paper documents, and manual data entry and transfer.
To be efficient, effective and profitable, you must get rid of paper and manual processes, but your digital payroll workflow also needs to be able to show you what’s in the rear-view mirror as well as what’s around the corner.
To validate the accuracy of payroll information, your software should have a Payroll Edit Register feature that alerts you to exceptions… if, for example, the hours worked by an individual or crew exceed the allowed amount of hours per pay period. In addition, the software should warn you if the pay rates deviate from minimum or maximum thresholds.
Exceptions, warnings and alerts – and, in some cases, flaming red road flares – should be established as standards and adjusted as necessary. Easy-to-use reporting and data view tools should provide quick insights into possible variations. Without taking your eyes off the road or your critical business operations, your payroll software should prompt you:
- to verify I9 documentation and employee status before processing payroll
- to review invalid pay rates (minimums/maximums)
- if an employee type has been manually overwritten
- if excessive hours have been worked per day or week
- if vacation and/or sick time is greater than accrued
- to verify involuntary deductions such as garnishments, tax levies, union dues, and child support
- to confirm union fringes and employer benefits
- to approve 401K, GTL group-term limit, medical insurance, etc.
To ensure payroll security, different access levels can be granted to enter payroll data for field, salaried and hourly employees. Salaried and fixed hourly employees can be automatically selected for entry into the payroll processing system, driving added productivity for your organization. In most software applications, multiple labor distributions can be entered on a single screen, and the hours worked each day of the week can be entered on the same line or made available with an automated data input process.
Your users will be on cruise control when your software eliminates their entry of overtime hours and automatically calculates the appropriate hours and pay rates based on your company’s or customers’ business rules. The app should also automatically prompt for certain payroll calculations, such as simultaneous transactions for charging equipment time to job cost and general ledger. Labor costs can be distributed directly to a job, a department, equipment repair hours, or can include transactions in the time and material billing process. Direct labor burden can also be calculated and distributed to job cost and general ledger, and optionally, time and material billing.
To blaze the optimal trail, your payroll application must be flexible enough to allow for automation but still be configured to your unique business requirements.
When the data is in, it’s time to write checks, and the distribution should be as smooth a road as the collection process. Your payroll app should provide a simple and seamless process for manual payoff checks, vacation checks, and special (bonus) checks. Payroll taxes and disability insurance deductions should be produced automatically for all state and local taxing authorities. Multiple state and local taxes must easily be deducted on the same payroll check.
Calculations for worker’s compensation and state unemployment insurance premiums need to be in compliance with state regulations, and Federal Unemployment Insurance (FUTA) must also be simultaneously accrued. Retroactive pay calculation for union and special pay requirements must accommodate and calculate gross-to-net pay and deductions.
With data collected and checks cut, the last stop on this road trip is reporting. Your payroll system should provide custom reports that compare, analyze and communicate your labor expenses. Because labor costs are one of the largest expenses in your construction business, you don’t want to get stuck in a traffic jam – you want dynamic reports and easy-to-read dashboards to proactively manage and improve your bottom line.
For more information on to successfully navigate the dangerous roads of construction payroll and HR administration, please contact us.
eCMS Cloud Construction Software provides you with:
- A WIP reporting database that is completely online, eliminating the need to rekey data or export to Microsoft Excel.
- Directly integrated with job costing and financial reporting applications, eCMS WIP reporting tools include the ability to enter revisions to forecasted cost or revenue, to forecast backlog into future periods, and to monitor the cash position of projects on a monthly basis.
- Customizable WIP reports that tell you if your jobs are over- or under-billed, and cash positive or negative; and warn you when you are not meeting margin targets.
- Real-time job costing and billing information monitoring so you know where you stand on your billing versus actual progress and current forecasts.
- Optional automatic revenue accruals for unbilled cost on T&M jobs.
- Automatic booking of financial impact to General Ledger for over/under billed, cost and revenue accruals.
- Extensive ad-hoc reporting capabilities, providing the user with the ability to easily create a myriad of related reports and dashboards, including historical trend reporting by month.
Forrester Research, Cambridge, Mass., suggests 2018 will be the year when a majority of enterprises will start dealing with the hard facts, which include embracing technology solutions such as AI (artificial intelligence), big data, and cloud computing, among others.
Further, companies will harvest insights using both data analytics and qualitative methods and will then implement insights in software to drive revenue and expand competitive barriers. This will allow business to sustain 27%-40% annual growth. Today, the good news is there is a significant opportunity for construction companies, if they are able to tap into that data effectively. The challenge is identifying how to best leverage that intelligence. This is where the Constructech Top Products comes into play. To help identify the best technology on the market, Constructech recognizes the most innovative solutions in the construction industry with a Top Products award.
Computer Guidance’s eCMS v.4.1 Cloud-Based Construction ERP has been selected as a 2018 Top Product by Why eCMS ERP?
Computer Guidance’s eCMS v.4.1 Cloud-Based Construction ERP has been selected as a 2018 Top Product byConstructech Magazine. The selected 2018 Top Products will enable construction companies to derive greater insights into business operations in 2018, ultimately improving processes and the bottomline.
Why eCMS ERP?eCMS cloud construction ERP from Computer Guidance provides users with ubiquitous business intelligence tools taking the guessing game out of decisions and eliminates “busy work” so you can focus on growing your business and taking care of your clients.
- easy-to-use interface and navigation through intuitive dashboards
- integrated browser-based applications accessible on any device anytime and anywhere
- unparalleled construction-specific functionality that has decades of proven performance
- the industry’s most reliable cloud ERP platform
- cutting-edge technology trusted by over 50,000 users
Computer Guidance Corporation Successfully Passes SOC 2 Type II Audit For Its Cloud Hosting Systems, Services and Associated Processes
Assurance provided by CliftonLarsonAllen, LLP in Accordance with Attestation Standards Established by the American Institute of Certified Public Accountants
Scottsdale, Arizona – February 6, 2018 – Computer Guidance Corporation, the leading developer of Cloud-based ERP software solutions for the construction industry, today announced receipt of its annual Service Organization Control (SOC) 2 Type II (SOC 2 Type II Audit) attestation engagement report. The trust services report provides independent validation that Computer Guidance Corporation’s security, availability and confidentiality controls operated in accordance with the American Institute of Certified Public Accountant (AICPA) applicable Trust Services Principles and Criteria (TSPC).
The SOC 2 Type II Audit reviewed several processes and procedures that have been implemented by Computer Guidance to proactively manage the cloud environments that host the eCMS system, including the relationship with Avnet and associated Tier III data centers, including:
- eCMS Hosting Services System based on the criteria set by the AICPA Guide Reporting on Controls at a Service Organization Relevant to Security, Availability, Processing Integrity, Confidentiality, or Privacy (SOC 2®)
- The suitability of the design and operating effectiveness of controls to meet the criteria for the Security, Availability, and Confidentiality Trust Principles set forth in TSP section 100, Trust Services Principles, Criteria, and Illustrations for Security, Availability, Processing Integrity, Confidentiality, and Privacy (AICPA, Technical Practice Aids) throughout the period.
“Computer Guidance Corporation’s commitment to strong internal controls in regard to their cloud-based hosted system solutions and services is evident in this report,” stated Mark Eich, Partner In Charge of Information Security Services, CliftonLarsonAllen, LLP. “Computer Guidance Corporation’s successful completion of this audit for the past six years demonstrates its integrity, accountability, and commitment to its clients. Computer Guidance customers can be confident that controls described within the report are accurately depicted and were operating as represented during these engagement periods.”
“Our customers rely on Computer Guidance to deliver secure and reliable managed hosting systems, services and ensure data security and systems controls,” stated Bob Shantz, Director of Infrastructure and Cloud Services, Computer Guidance Corporation. “SOC 2 Type II certification further gives our clients confidence that Computer Guidance complies with their internal security policies and standards.”
About Computer Guidance Corporation
With over 20% of their client-base represented on top ENR lists, Computer Guidance Corporation has long delivered the leading construction-specific enterprise resource planning solution including financial and project management applications, #1 business intelligence, mobile technologies and enterprise content management. Scalable, custom configurable and available both cloud hosted and private cloud, eCMS serves the needs of thousands throughout North America and has been named as the ERP solution of choice by the AGC. Computer Guidance Corporation is part of JDM Technology Group, a global construction-specific software conglomerate that serves more than 45,000 users in 40 countries and 6 continents. For more information, visit www.computerguidance.com or call 888.361.4551.