When it comes to construction payroll, there are a few key factors you should consider. These include handling construction complexities, sophisticated reporting capabilities, and integration with accounting software.
Choosing a payroll service that can handle all these needs is essential for successful construction management. Payroll services that understand the industry and are built for construction will create work opportunities, increase efficiency, and save money.
Handling Complexity
Payroll is an essential part of running a construction company. But it can also be a stressful task that requires attention to detail and compliance with tax laws.
Incorrect payroll can lead to severe repercussions, including a hefty tax penalty. That’s why choosing a construction-specific payroll service that can help you avoid costly mistakes and maintain compliance is essential.
Contractors who operate in multiple states, have employees working on several jobs simultaneously, and pay their workers different wages must ensure that payroll is calculated each time correctly. Fortunately, several software and payroll services specialize in construction accounting and payroll.
Choosing the right solution for payroll service for construction can be daunting, but it’s worthwhile. The best payroll services will have in-house experts that understand local labor and tax laws and the nuances of the construction industry. They should also be able to offer onboarding support and provide training materials.
Sophisticated Reporting Capabilities
Whether you are working with unions or prevailing wage work, you need to be able to keep track of all your payroll requirements. A construction-specific payroll service will have the reporting tools to ensure your employees are paid correctly and in compliance.
Payroll reports can be broken down by job cost. Using this information, you can track your labor hours, dollars, and burden (FICA, FUTA, SUTA, workers’ comp) by the job.
This will help you to stay on top of costs and productivity for each project. Moreover, it will allow you to see how your business is doing overall.
Some services also offer more sophisticated labor cost analysis and unit cost reporting. This will ensure that your construction company spends as little money as possible without sacrificing quality.
A construction-specific payroll service will also be able to integrate with accounting software. This will ensure your payroll data is seamlessly transferred to your accounting system. This will decrease errors and increase efficiency in your payroll processes.
Integration with Accounting Software
Whether you’re an experienced construction contractor or just starting, choosing a payroll service that understands your industry is crucial. It needs to handle the complexities of your business, provide sophisticated reporting capabilities, and be integrated with accounting software.
Many small contractors start with generic bookkeeping systems like Quickbooks or Peachtree and then upgrade to a construction-specific system when they get big enough. These systems offer job costing, advanced payroll processing, and other financial management capabilities.
The leading systems also offer functionality for project management, estimating, bid management, equipment, and subcontracting management. These functions can help you better manage your business by allowing you to see how well you’re performing at each stage of the process.
A construction-specific payroll service can sync with accounting software programs like QuickBooks, Xero, and others, allowing your employees to enter data on the platform and automatically update it in General Ledger and jobs, saving time and eliminating errors. It can also allow you to track and report on each project’s labor and burden costs, ensuring your team is appropriately compensated for each task.
Increased Efficiency
A construction-specific payroll service can streamline many tasks. From processing employee payslips to managing time cards, a cloud-based solution will save your HR staff valuable time.
Aside from the standard payroll functions, these software-as-a-service (SaaS) providers offer various other services to help you run your business more efficiently. These include automatic direct deposits, payroll tax calculations, compensation breakdowns, and pay stub management.
Among the more unique features of these solutions is a mobile time card solution that allows field personnel to capture their hours and wages and even share these data with back-office ERP systems. This can save your company a lot of time and money while improving the quality of labor.
The best payroll vendors also provide construction-specific tools to simplify your job, such as job designations at multiple pay grades, union employee reports, and government contracting reports (WH347, EEO, city-specific). A top-notch service will offer free e-learning materials and onboarding support for employee orientation. Choosing a construction-specific payroll service for your business is an investment that will pay off in the long run.
Create Work Opportunities
Payroll is a significant pain point for construction companies. Not only do they need to deal with prevailing wage and union payroll, but they also have to ensure their workers are paid per local labor standards and tax laws.
To avoid these headaches, a construction-specific payroll service can be invaluable. They will handle all the complexities of payroll processing while providing sophisticated reporting capabilities, integration with accounting software, and more.
A construction-specific payroll service can provide peace of mind that all workers are being paid accurately and on time. This will help ensure worker satisfaction and increase employee loyalty.
Choosing your company’s exemplary construction-specific payroll service will require you to research. Some key factors to consider include customer support, the diversity of employee records they can manage, and industry experience.
The best construction-specific payroll services will be able to handle a variety of pay rates and benefits, including those related to union dues and vacation time. They should also have mobile features so employees can access their timecards and other self-service options.
