The Real Cost of Manual Payroll in Construction

You’re Paying for Payroll Problems You Can’t See

You collect timecards. You run payroll. You cut checks.

It gets done—but not without frustration, delays, or second-guessing. Maybe your admin has to chase down missing hours. Maybe you’re re-entering handwritten time into a spreadsheet. Maybe you’re fixing the same certified payroll mistakes week after week.

Sound familiar?

What most contractors don’t realize is this:
Manual payroll isn’t just annoying—it’s expensive.

We’re talking:

• Lost admin hours chasing and correcting time

• Job cost reports that don’t reflect reality

• Compliance exposure on union or prevailing wage jobs

• Cash flow slowdowns from delayed billing

And the worst part? You’re paying for it every single week.

Manual payroll systems look “simple” from the outside. But inside your business, they create hidden waste and risk that piles up fast.

In this article, we’ll show you:

• The hidden financial and compliance costs of manual payroll

• What it’s doing to your job cost visibility and labor forecasting

• How modern GCs are ditching paper and spreadsheets for mobile time tracking

• And how tools like hh2 Remote Payroll let you fix it—without a massive system change

Let’s break it down.

The Hidden Costs of Manual Payroll (That Add Up Fast)

Manual payroll might not show up as a line item on your budget—but it’s bleeding time, money, and accuracy from your business.

Here’s where the real damage happens:

🕒 1. Hours of Admin Time—Every Single Week

When payroll is run manually, your team spends hours:

• Collecting timecards from multiple jobs

• Decoding handwriting and fixing math

• Re-entering the same data into spreadsheets or your ERP

• Chasing down approvals, signatures, and corrections

The true cost:
You’re paying back-office staff to manage inefficiency instead of focusing on high-value work like billing, forecasting, or reporting.

📉 2. Delayed Job Cost Reports

If time isn’t collected daily—or if it’s stuck on paper—you can’t see how jobs are performing until it’s too late to act.

The true cost:

• You miss early signs of overruns

• Labor forecasting becomes guesswork

• Your job costing reports are already outdated when they hit your desk

❌ 3. More Errors = More Risk

When time is manually calculated and re-entered, errors are inevitable.
Especially if you’re dealing with:

• Union pay rules

• Certified payroll

• Prevailing wage

• Multi-state jobs or split shifts

The true cost:
One wrong rate or late report can trigger compliance issues, audit risk, or even fines.

💸 4. Overpayment and Unbilled Time

Without real-time data:

• Timecards get padded or misclassified

• Missed cost codes throw off billing

• Change order work gets performed—but never recorded or billed

The true cost:
You lose money for work you completed because it wasn’t documented correctly.

🔁 5. Burnout and Turnover

Chronic rework and outdated processes frustrate your field and admin staff alike. Manual payroll creates extra work—and it’s the kind no one wants to do.

The true cost:

• Field teams disengage

• Office staff gets burned out

• You risk losing good people over preventable pain

What Payroll Looks Like When It Actually Works

Imagine running payroll without chasing down timecards.
No spreadsheets. No re-entry. No second-guessing.

Just clean, approved time data—entered once, synced automatically, and ready to process.

That’s not a fantasy. That’s what modern construction payroll looks like with the right tools in place.

Here’s how smart GCs are streamlining their payroll process without overhauling their ERP:

📱 1. Crews Track Time Daily from the Field

Instead of clipboards or memory, foremen or crew members log time on their phones or tablets—by job, cost code, and activity.

Why it works:

• Hours are submitted in real time

• No need to “rebuild the week” on Friday

• Better accuracy and accountability from the start

✅ 2. Supervisors Approve on the Spot

Time entries are reviewed and approved in the field—no delays, no stacks of timecards sitting in trucks.

Why it works:

• Issues are caught early

• Approvals are centralized and trackable

• Admin doesn’t have to guess who signed off

🔄 3. Time Syncs Directly Into Payroll and Job Costing

With tools like hh2 Remote Payroll, time data flows straight from the field into your ERP or payroll platform.

Why it works:

• No re-entry or batch processing

• Instant visibility for job costing

• Faster payroll runs with fewer errors

📊 4. Labor Data Feeds Certified and Union Reports Automatically

No more reformatting spreadsheets or manually building certified payroll reports.
hh2 formats time data for:

• Davis-Bacon

• Prevailing wage

• Union locals and rates

• Multi-state job compliance

Why it works:

• You stay compliant without extra steps

• Reports are always audit-ready

• Nothing gets missed or miscoded

🚀 5. Payroll Becomes a Strategic Advantage

With accurate labor data flowing daily, your team can:

• Forecast labor needs better

• Bill faster and with confidence

• Spot trends that impact project profitability

And that’s the real win:
Payroll stops being a liability—and starts driving smarter decisions.

How hh2 Remote Payroll Helps GCs Eliminate Manual Payroll—for Good

Most GCs don’t need a new payroll provider.
They just need a better way to collect, approve, and sync time from the field.

That’s exactly what hh2 Remote Payroll was built to do.

Designed for contractors who self-perform, hh2 captures time where it happens—on the jobsite—and syncs it directly into your ERP or payroll system. No more chasing timecards, fixing cost codes, or scrambling for compliance.

Here’s how it simplifies everything:

📱 Mobile Time Entry from the Field

Crews log hours using phones, tablets, or a kiosk—online or offline. Entries are coded by job, phase, and labor type.

What it eliminates:

• Paper timecards

• End-of-week guesswork

• Bad handwriting, missing hours

✅ Supervisor Approvals in Real Time

Foremen approve time on the spot. Admins can track approvals from the dashboard—no signatures needed, no paper trail required.

What it eliminates:

• Delays in getting time to payroll

• Unapproved or inflated hours

• Uncertainty at processing time

🔄 Seamless Sync with Your ERP or Payroll System

hh2 integrates with systems like Sage 100, Sage 300 CRE, Viewpoint Vista, and Foundation. Time flows straight into your payroll module—accurate and already coded.

What it eliminates:

• Re-entry and batch uploads

• Time-consuming error checks

• Disconnects between field and finance

🧾 Certified and Union Payroll Compliance—Built In

hh2 automates complex requirements:

• Union locals and fringe rates

• Davis-Bacon and certified payroll formats

• State-specific compliance and reporting

What it eliminates:

• Manual spreadsheet gymnastics

• Compliance headaches

• Audit panic

🧠 Payroll Becomes a Predictable Process

Instead of stress every pay period, you get:

• Daily visibility into labor

• Clean records for every crew and job

• Faster, simpler payroll that everyone trusts

👉 See hh2 Remote Payroll in Action

Ready to Stop Losing Time (and Money) to Manual Payroll?

Every paper timecard, spreadsheet, and rekeyed hour is costing you.
Not just in admin time—but in accuracy, job costing visibility, and compliance risk.

hh2 Remote Payroll helps you:
✅ Capture time in the field—daily, by job and cost code
✅ Eliminate manual entry and approval delays
✅ Stay compliant with certified and union payroll rules
✅ Sync time straight into your ERP without added complexity

You don’t need to rebuild your payroll system.
You just need to connect the field to the office—the right way.

👉 Talk to hh2
👉 Schedule Your Free Demo

Your next payroll run doesn’t have to be a mess. Let’s make it smooth—starting now.

Frequently Asked Questions About Manual Payroll in Construction

Why is manual payroll a problem for construction companies?

Manual payroll often involves paper timecards, handwritten notes, spreadsheets, and rekeying data into payroll systems. This leads to delays, errors, and compliance risks—especially on union and certified payroll jobs. It also slows down billing and job costing.

How much time does manual payroll really take?

On average, GCs lose several hours per week per project just collecting, correcting, and re-entering time data. That doesn’t include time spent chasing approvals, fixing cost codes, or formatting reports for compliance.

What are the risks of manual payroll for certified or union jobs?

Mistakes in rates, hours, or documentation can lead to failed audits, fines, or withheld payments. Manual systems increase the chance of human error, which puts compliance at constant risk.

Can digital payroll tools work for crews in the field?

Yes. Tools like hh2 Remote Payroll are mobile-friendly, easy to use, and even work offline. Crews can enter time daily, by job and cost code, and supervisors can approve from any device—no paperwork needed.

How does hh2 Remote Payroll save time for back-office staff?

It eliminates re-entry. Once time is submitted and approved in the field, it syncs directly to your ERP or payroll system. That means no spreadsheets, no transcription errors, and no more hunting for signatures or corrections.

Does hh2 support certified payroll and union wage tracking?

Absolutely. hh2 handles union locals, fringe rates, prevailing wage rules, and certified payroll reporting requirements out of the box. It formats data for federal and state reporting automatically.

Do I need to switch payroll systems to use hh2?

No. hh2 integrates with systems you already use—like Sage 100, Sage 300 CRE, Vista, and Foundation—so you can digitize the field side of payroll without replacing your backend.