Payroll processing can be a nightmare for any business, but it’s especially difficult for construction firms. Prevailing wage reports and other state-specific reporting requirements require additional care and attention when processing. A good payroll service should offer a range of features that address these unique needs. This includes online onboarding, document management, and workers’ comp compliance services.
Time & Attendance
A construction business’s payroll needs are highly variable. Unlike other industries with a set schedule for paying employees, a construction company’s payroll fluctuates weekly, depending on the project’s scope. When payroll changes, a firm must ensure that it meets all tax regulations on financial data and pays workers properly. Any mistakes can result in fines and legal penalties for the firm.
In addition to the usual time management challenges, construction sites teem with activity from morning until night, making it difficult for employees to clock in and out accurately. Some firms rely on a site administrator or security guard to keep track of employee movements and record them manually. Luckily, the right time and attendance software can make all the difference in construction. Advanced solutions provide more accurate clock-in/out results with biometric scanning and facial recognition technology that identifies the unique characteristics of each worker’s face. This helps to eliminate the chances of inaccurate time tracking and reduce labor costs by ensuring that only authorized employees are clocking in and out.
These time and attendance tools help to streamline essential HR functions so that HR can focus on attracting and retaining top talent instead of spending valuable time on administrative tasks. Additionally, these services can improve workforce visibility and increase productivity with real-time dashboards and custom reports for any period while eliminating redundant data entry. Some providers include multistate payroll, union and job costing, and flexible pay rates.
Payroll
Construction firms have unique payroll requirements that make them more prone to errors in the process. Error-free reporting is crucial for the industry because of the penalties involved, whether it’s time tracking, job costing, or compliance with labor laws. Using a service that understands the industry will save you time and money. Scheduling is another area where construction firms face rare issues with other companies. With workers spread across multiple job sites, finding employees who can be available for shifts simultaneously can be challenging. A payroll service that offers scheduling tools can make this process easier and more efficient.
Some services also offer certified payroll reports, which are necessary for various reasons. For example, for government-funded projects, contractors must submit a certified payroll report to show that they’re paying their employees the proper wage rates—also known as the prevailing wage. This report includes details about the salaries paid to each worker, including their job roles and classifications.
A good payroll service for construction should be able to handle all of these complexities and integrate with accounting software programs to sync General Ledger and jobs with labor and burden costs. Choosing a service that’s built for construction can increase efficiency and create more work opportunities. Start by comparing quotes from up to 5 different construction-specific services.
Taxes
Payroll services help automate tasks and minimize manual payroll expenses for construction firms. They also guarantee compliance with various wage and labor law regulations. As a result, construction firms can save valuable business time and boost precision. A reliable third party can help you streamline employee timekeeping and payroll tasks.
For example, if your company works on federally-funded prevailing wage jobs, you must submit certified payroll reports for each laborer who works on the project. These detailed reports require matching each worker to their location’s job code and wage rate. Incorrect or incomplete reports could lead to fines and lost business opportunities. A payroll service can instantly prepare these reports for you, which can be submitted to the appropriate government agency. A payroll service also helps your firm comply with workers’ compensation laws by determining whether your employees should be issued w-2 or 1099 forms.
The determination is based on factors such as who controls the work performed, where they perform it, and how much control you have over them. A trusted third party can help you determine the right form for each employee and assist in filing all related paperwork on your behalf. In addition, a payroll service can simplify calculating and withholding payroll taxes and submitting them to the relevant agencies. This can save you money by eliminating the need for an in-house accountant and reducing fines by ensuring regulatory compliance.
Benefits
There are many benefits to outsourcing payroll for a construction company. Not only will you save time handling complex payroll taxes and reporting, but you’ll also reduce the risk of errors, saving your business money. It’s no secret that payroll is complicated, even more so for construction companies with specialized requirements like prevailing wage work or multistate payroll processing.
A few big-name payroll services offer special plans for construction firms with all the features they need to handle these unique complexities. The best choice for your construction firm may depend on the specifics of your labor and compliance needs, how much you’ll use their reporting tools, whether or not they’re integrated with your accounting software and if they can provide any other ancillary services, such as background checks or hiring agencies.
