5 Payroll Mistakes Costing Contractors Money

Payroll mistakes can be expensive for contractors. Here are the five most common errors and how to avoid them:

1. Manual Time Card Entry Errors

Typing hours from paper time cards into your payroll system creates opportunities for mistakes. Even small errors compound over time.

Solution: Use digital time tracking that feeds directly into your payroll calculations.

2. Incorrect Overtime Calculations

Different states and job types have different overtime rules. California has daily overtime, while most states only have weekly. Prevailing wage jobs have special requirements.

Solution: Automate overtime calculations with rules that match your location and job types.

3. Missing Job Costing Data

If you're not tracking which hours go to which jobs, you can't accurately bid future work or identify unprofitable projects.

Solution: Require job site selection at clock-in time to automatically categorize all hours.

4. Late Payroll Processing

Rushing payroll at the last minute leads to errors and stressed office staff. Plus, crew members expect timely, accurate payment.

Solution: Implement systems that let you preview and approve payroll days in advance.

5. Poor Record Keeping

You're required to keep payroll records for years. Paper records get lost, damaged, or disorganized.

Solution: Digital records with automatic backups ensure you're always audit-ready.

The Bottom Line

The right time tracking and payroll system pays for itself by eliminating these costly mistakes. FieldClock automates all of these areas while keeping things simple for your crew.