How PEO services help construction companies and managers.
In the construction industry, creating a safe work environment, finishing projects on deadline, and providing knowledgeable customer service are a top priorities. Unfortunately, this can put a lot of stress on construction managers. Many do not have the time or resources to handle administrative tasks.
From payroll and benefits to worksite accidents and workers’ compensation claims, HR administration duties can be time-consuming. Compliance needs in the construction industry are high and talent can be hard to keep if your HR department is not well-run.
Partnering with a PEO is the perfect solution for construction managers looking to save money and time, reduce risks, and gain a competitive edge.
A Professional Employer Organization (PEO) takes on key administrative burdens for a company. When you work with a PEO, you enter into a co-employment agreement. The PEO handles employee-related tasks, while you maintain control of all decision-making and day-to-day tasks. PEO services offload certain responsibilities so you can focus on business growth.
Here are ways a PEO can provide help to construction companies and contractors.
Providing Access to Better Workers Compensation Insurance Costs
If you operate in the construction industry, you’re mandated to provide your employees with workers’ comp coverage. In fact, acquiring comprehensive and affordable coverage should be a top priority. Because the construction industry is labor-intensive and workers suffer on-the-job injuries, your classification and experience modifier rate can lead to higher premiums.
When you partner with a PEO, you join a large group policy with other clients. By leveraging economies of scale, the PEO gives you access to lower worker’s compensation insurance rates and a flexible payment schedule.
You also pay less upfront and lower your experience modifier because the PEO takes the total amount of their client’s e-mods to reduce risk. If a workplace accident occurs, a PEO will respond to and handle all your worker’s compensation claims.
Safety and Risk Management
Safety and risk management encompasses a great deal of HR work in the construction industry. Your company must follow all guidelines issued by the Occupational Safety and Health Administration (OSHA) and other related agencies.
If your company is in violation, you face costly fines. PEOs have a vested interest in mitigating workplace safety issues and limiting claims. The co-employment agreement incentivizes a PEO to act in the best interests of its clients.
PEO services can help you create a safer work environment by keeping your policies up to date, implementing safety procedures and training. PEOs also offer guidance to ensure your company adheres to all safety regulations.
HR professionals stay up to date on all safety regulations that apply to the construction industry and keep your company in compliance. A PEO also offers guidance on topics related to topics such as FMLA, FLSA, ADA, independent contractors, immigration compliance, and more.
Eliminating the Burden of Employee Benefits Administration
A competitive employee benefits package helps with recruitment, retention, and productivity. Providing premium benefits isn’t an option for many small and medium-sized businesses because there isn’t room in the budget. But employees may choose to work elsewhere if they see a lackluster offering.
A primary goal of PEO services is to provide employees with comprehensive, cost-effective benefits without the regulatory and administrative burdens that can be overwhelming and costly.
By partnering with many hundreds or thousands of businesses, a PEO has negotiating power like Fortune 500 companies. This allows you to provide better benefits than you would on your own.
Also, PEOs can negotiate lower rates with carriers. We can handle the related administrative tasks, and provide legal notices. The PEO will help workers understand their benefits by providing enrollment tools and benefits plan content.
Time and Attendance Management
The project-driven nature of construction work makes attendance and time tracking difficult to manage. Because of that, it can be challenging to adhere to labor regulations and meet project guidelines.
For a construction manager looking to stay compliant with labor laws and cut their administrative time, a PEO can help take the guesswork out of trying to track hours worked and track changing employment laws.
Many PEOs offer electronic tracking software that integrates with payroll software. The software gives managers and employees access to enter their own information, reducing the chances of an accidental wage and hour violation.
The ability to enter hours worked empowers employees to own the accuracy of their paychecks and allows you to fine-tune business operations.
Unemployment Claims Management
More than 87% of fraudulent claims occur due to reporting errors. When past workers file for unemployment, you should submit clear and correct claim information to protect your construction company against fines and penalties. Unemployment claims can be time-consuming and ripe for mistakes.
With PEO HR solutions, the human resource experts can handle the entire unemployment claims process for you. They will receive and complete the forms on your behalf.
The days of hunching over frustrating and complicated paperwork are behind you. A PEO will also safeguard your company through fraud prevention. The HR experts will comb through the paperwork, ensuring the details are correct and defending your business if a claim is not legitimate.
Payroll and Tax Administration
Running a timely and accurate payroll each cycle is important to employees. But in-house payroll processing is a time-consuming process that requires attention to detail. You have to collect employees’ hours, calculate wages, adhere to legal requirements, file employment taxes, and issue taxes. You also need to factor in Social Security, health care deductions, employee benefits, and employee tax withholding. The demand increases as your construction company grows.
A PEO can deliver full payroll processing and tax administration solutions, including:
- Recording wages
- Processing payroll and issuing paychecks
- Calculating payroll deductions
- Preparing and filing payroll taxes
With PEO services, you get access to better cloud-based systems that give you and your workers easy access to important data and allow integration with your accounting system.
The software eliminates the hassle of manual data entry, improving the accuracy and timeliness of your payroll. Retaining PEO services means you gain access to their years of expertise.
They have an in-depth understanding of payroll laws and regulations, tax law, and HR solutions. PEO experts also keep up with changing regulations, ensuring you maintain compliance with state and federal employment laws. PEO payroll services save time, reduce costs, and improve data security.
Empowering Construction Companies to Succeed
Vested HR’s PEO solutions help construction managers reduce their workload, lower costs, improve HR, reduce risk, and stay in compliance so they can focus on business growth.
You get to deal with one organization for payroll, workers’ comp, benefits, taxes, and human resources. We will help you save on employee benefits, lower your experience modifier, and automate payroll.
We’re committed to providing excellent customer service. Contact us today to learn more about how Vested HR can assist your construction company.