Managing Construction Payroll: Unique Challenges & Solutions

how to do payroll for a construction company

To meet these laws, your employees’ gross wages must adhere to the prevailing wage requirements for work on related projects in surrounding areas. Fringe benefits, such as health insurance and retirement plans, must also meet these requirements. Points North uses the data collected through mobile time-tracking app to keep the information https://www.bookstime.com/ properly stored and to fill out certified payroll reports accurately and properly. Overall, when evaluating payroll services for construction, it’s important to look for providers that offer these key features. By doing so, you can ensure that your payroll process is efficient, accurate, and compliant with government regulations.

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Smart system defaults fill in timecard information with just a few keystrokes — or sync mobile timecards — and FOUNDATION® calculates pay rates, taxes and deductions automatically. ConstructionPayroll.com has significantly streamlined my payroll process, providing efficient solutions for both payroll management and reporting needs. With our no-obligation guarantee, you can enter time, calculate payroll taxes, and compare with your current payroll processing to verify functionality and accuracy before processing your first live payroll. With job costing and tracking, you can assign specific costs to each job or project, allowing you to see how much money is being spent on labor for each one. This information can be invaluable when it comes to budgeting and forecasting, as well as identifying areas where you can cut costs or improve efficiency. Gusto is a popular payroll solution that offers multiple benefits for companies of any size, including HR processes.

Precise Tax Calculations & Payments

This process will involve having employees clock in and out, recording start and end times, and tracking the number of hours worked each day and each week. Unlike some competitors that require you to pay extra for a time-tracking module, all FreshBooks plans come with unlimited time tracking. You can start a timer from within the mobile app to log hours spent on a particular project or sync data from tools like Asana and Trello. Use a journal, spreadsheets, or construction accounting software to record day-to-day transactions like accounts payable, accounts receivable, labor costs, and material costs incurred. You’ll want to include a description of each transaction, the date of the transaction, and the revenue received. If you use an app or online system, your only responsibility is to enter the hours worked for each employee.

Best Construction Payroll Software in 2024

  • Just like on the jobsite, you’ll know you’ve found what you’re looking for when things go from painful frustration to effortless completion.
  • The Social Security tax rate for an employee is 6.2%, and the Medicare tax rate is 1.45%.
  • For example, if you are working on a public works project, you will need to submit certified payroll reports to the government agency overseeing the project.
  • Email management software is crucial for organizing communication with tenants and property owners, while survey software can help collect feedback from residents.
  • Rates of pay for construction labor may be impacted by the project’s location, either because of union rules, prevailing wage rates, or the demand for a certain skill set in that region.
  • I avoided QB Payroll because I thought I was going to have to do everything on my own.

Stay compliant, collect employee data, and streamline tax filing – all while putting time back in your day with our automated payroll software. With the assurance of an error-free workflow, you can get back to what matters most – your people. Learn how our modern solutions get you out of the tactical and back to focusing on the bigger picture.

how to do payroll for a construction company

Robie also worked as an HR specialist for 10 years where she managed various facets of HR—from payroll and benefits to employee services and HR systems. It earned an overall score of 4.18 out of 5 in our evaluation, with high marks (4 and up) in HR and payroll features, reporting, and user popularity. While it has union payroll codes you can use, it requires a Points North integration for certified payroll reporting (eBacon and Payroll4Construction simply provide this natively). The setup fee and lack of a contractor plan (something Gusto and QuickBooks Payroll offer) also pulled its overall score down. Adopting construction payroll software delivers a number of business-enhancing benefits.

  • Overall, when evaluating payroll services for construction, it’s important to look for providers that offer these key features.
  • For publicly-funded projects, certified payroll is yet another compliance-heavy burden.
  • Workers are generally responsible for noting whether they accrued overtime during a given period — but contractors need reliable systems to catch and correct any errors when processing payroll.
  • Construction payroll software—when integrated with a comprehensive enterprise resource planning (ERP) solution—equips construction businesses with financial management capabilities.
  • Jennifer Simonson draws on two decades as a journalist covering everything from local economic developement to small business marketing.

Time and Attendance Management

how to do payroll for a construction company

Payroll4Construction also has very few user reviews, limited integration options, and lacks the employee self-onboarding tools that ADP Run, Gusto, and QuickBooks Payroll provide. Deltek is the leading global provider of software and solutions for project-based businesses. John Meibers is the Vice President & General Manager of Deltek ComputerEase, the leading provider of accounting, project management and field-to-office software for the construction industry. Prior to joining ComputerEase more than 20 years ago, John spent a decade working for a large mechanical contractor. Contact us today to learn how Deltek ComputerEase can help you to boost your profitability.

Some things like tax and bank account details you’ll get directly from your contractors and employees. Information like tax ID numbers and filing and deposit schedules is available payroll for construction companies through the Internal Revenue Service (IRS). Having everything organized and in one place is important to help you stay compliant with state and federal tax laws.

Managing Construction Payroll: Unique Challenges & Solutions

Manage prevailing wage, Davis-Bacon and union payrolls with automatic calculations and minimal entry. While construction companies share a lot of commonalities, every company is different and what a roofing contracting company needs for payroll may be different than, say, a plumbing or electrical company. You’ll need to be able to customize it to the unique types of work, materials, subcontractors, etc. that you use. Payroll software that integrates with your accounting system makes your accounting and bookkeeping systems much easier and more robust.

how to do payroll for a construction company

Build A Stronger Construction Accounting Strategy

  • It is designed to help businesses manage multiple pay rates, track work hours, update and properly apply payroll taxes, and complete accurate timesheets with an integrated time and attendance tracking system.
  • Ensuring workers are paid correctly builds trust, which can boost employee engagement.
  • When it comes to construction payroll, there are several things you need to remember.
  • Workstream’s support team is available daily for payroll questions and can provide white-glove onboarding and full-service setup for clients.
  • From consistent labor shortages to inflation to supply chain disruptions, construction companies are no strangers to challenges.

This article will discuss some unique intricacies of construction payroll and how contractors can develop systems to get extra intelligence from time sheets. In summary, construction payroll isn’t easy – but it’s vital to get it right, and there are ways to make it easier. That way, it’s much easier to distinguish what taxes, overtime, benefits and others are relevant to which hours worked. If an employee works 6 hours on a commercial project one day, then 4 on a public sector contract the next – these should be listed under separate job codes.

Haider Sultan

I'm a qualified content writer for Peak Searchers, and I'm eager to produce articles about tech-related topics. My primary occupation is not writing, but I still regard it as a hobby and a love. I've been writing content as a job for a while now.

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