Shifting the payroll procedure presents a learning curve for everyone on the team (https://rhumbix.com/digital-teamwork-works/). Since construction is a project-based industry, standard payroll practices seem appealing. But what if there’s an easier, more convenient way to get everyone on the same page?
Unfortunately, as we builders know, it’s continuous maintenance of the structures already in place that secures their stability and prevents the need for repairs down the line. The same principle applies off the field and in the accounting office.
If they have not already, state or nationally-issued mandates may be coming your way, according to Myriam Mourani, a Southern California-based executive accountant. “Some states, such as California, are mandating electronic payroll,” she said. Adding, “This includes both e-filing and electronic payment of craft workers.” Soon enough, every builder in the states will recognize digital payroll as not only the wise but the most legally transparent, construction management solution. Besides, why limit your business to just a few states, when updating a few business procedures can render your team compliant with any state in the country? We know that the most successful individuals and teams in construction are the ones who are ahead of the curve, including impending legal compliances.
The upside of consistent labor costs? “Tax deductions,” according to Myriam. Labor costs and any other expenses associated in construction management have the opportunity to be eligible for tax deductions, but only if they’re documented. “Yes, you can guesstimate some expenses when filing,” she admits. “But, even the slightest gap in reports could be cause for enquiry and audits from the IRS.” Digital payroll allows for leaders to take full advantage of any potential business expense from construction management and labor costs, without taking on a big risk.
According to Myriam, the IRS is beginning to encourage organizations, both large and small, to go paperless. They are valuing transparency and seeking to improve it both inside the service and in the organizations they collect from. Furthermore, piles of paper can serve as a breeding ground for errors. Save yourself and your team members the hassle by switching to digital.
About Rhumbix: We know that the best technology provides you with a way to get to work, faster. Rhumbix Field Intelligence Platform is a digital solution that improves every aspect of daily construction operations with better data from the field to the home office. Rhumbix boosts productivity, craft worker morale, and building quality while providing a field experience that teams love.