If you are a Construction payroll professional, HR manager, Controller, CFO or CIO – you may be tasked with identifying and recommending the best possible software solution for managing Payroll, Payroll Taxes, Fringe Benefits, Timekeeping, Human Resources, Recruiting, Onboarding, Applicant Tracking and other critical business issues.
Robust platforms that manage payroll, HR and related issues are called Human Capital Management (HCM) software.
Does Your Business Really Need HCM Software? Key Questions.
While HCM software does offer stronger compliance capabilities than simpler “DIY” Construction payroll solutions – this type of software is not right for every Construction contractor. The following key questions can help you understand whether Human Capital Management (HCM) is right for you:
- Are you dealing with multiple tax agencies? For example, paying state unemployment tax across two or more states because you have employees who work in more than one state.
- Do you need to reduce HR risks? For example, capturing employee acknowledgement of important policies or meeting project diversity and/or union membership requirements.
- Do you need to be audit-ready? For example, receiving notice from an agency or union that you are going to be audited and records must be made available for a specific time period and/or a specific union.
- Are you taking on Certified Payroll projects? For example, learning that your business has won one or more large projects that will require Certified Payroll reporting.
- Are you working with multiple unions? For example, you may be preparing multiple remittance reports on a monthly basis and managing multiple rate and benefit requirements for union employees.
- Are you planning to scale job costing? For example, you may need to create burden rates that vary by company or by division.
If your answer is “yes” to one or more of these questions, your business may be outgrowing in-house or “DIY” payroll solutions such as QuickBooks or Payroll4Construction, or in-house payroll management within your ERP System.
What Payroll Software Providers are Powerful Enough for General Contractors?
As a general contractor, your company may be concerned about minimizing HR compliance risks, tax risks, and risks associated with submitting union reports and Certified Payroll reports. Your chosen HCM software must not only provide a clean user experience, but also provide reliable user guidance for employee recordkeeping, time tracking, payroll processing, payroll tax management and more.
When choosing an HCM software provider, it’s important to consider several factors related to compliance, business continuity and system reliability – HR and Payroll are both time-sensitive, business-critical processes that depend heavily on stable technology.
HCM Software – Business Continuity Checklist for General Contractors
Use the following business continuity checklist to evaluate potential HCM software providers – every HR and Payroll system recommended by HCM TradeSeal meets the business continuity requirements of this checklist.
- Years in business: has the HCM provider been in business for at least 20 years?
- Number of clients: does the HCM provider serve at least 5,000 active clients?
- Cash on hand: does the HCM provider keep at least $50M cash on hand?
- Number of integrations: has the HCM provider integrated its platform with at least 100 relevant software tools?
- Technology portfolio: has the HCM provider acquired three or more relevant technologies to strengthen its core capabilities?
Choosing an HCM technology operated by a provider with significant years in business, number of clients, cash on hand, number of integrations and a wide technology portfolio is an important consideration for any general contractor concerned about meeting the Construction industry’s strict HR, Tax and Payroll requirements.
Who Are the Best HCM Providers for General Contractors?
HCM TradeSeal recommends seven Human Capital Management (HCM) technology providers capable of meeting the business continuity and compliance needs of general contractors in the Construction industry.
- Paycor: strong job costing, time & attendance, HR and payroll functionality.
- Paychex: largest 401(k) recordkeeper in the US, with strong time, HR and payroll capabilities.
- UKG: ranked #3 on Fortune’s Best Workplaces in Technology 2021, strong enterprise features.
- ADP: largest payroll provider, ADP pays 1 out of every 6 US employees
- Paylocity: strong technology ecosystem and powerful HR, time and payroll functionality.
- Ceridian: powerful enterprise capabilities and customizable reporting
- Workday: known for large enterprise capabilities
Which Construction Payroll is Best?
HCM TradeSeal is dedicated to serving Construction payroll teams focused on growth. Our expert knowledge of HCM systems can help general contractors select the right HCM software tools, and plan implementation timelines for a smooth go-live.
Schedule a free HCM software consultation with our expert team to understand which system is right for your business.
