Managing Construction Payroll: Unique Challenges & Solutions

We looked for a basic selection of payroll reports, including customization options. With Payroll4Construction, you have to call its sales team to discuss your requirements and request a quote. However, we were able to get basic pricing details from the provider’s online quote tool. For a business with 25 workers, running a bi-weekly payroll will cost you $136.25 per pay run. In our evaluation, Gusto scored 4.14 out of 5 with high marks in nearly all criteria.

Use Time Tracking Tools

This created a problem as local workers and employers felt they were getting priced how to do payroll for a construction company out because of the cheaper labor supplied by out-of-state workers. To combat this, Davis-Beacon mandated the creation of prevailing wages–the hourly rate (wages + benefits) paid to similarly employed workers in a certain location. The federal certified payroll form is the WH347, but many states have their own forms for reporting. Some states require specific websites and processes for submitting, so you’ll need to contact your local municipality to ensure you have the correct process in place. If you need help getting started, you can read the Department of Labor’s guide on creating a WH347 payroll form. Payroll is a vital business process for managing employee benefits, calculating taxes, and ensuring compliance with government regulations.

Generate Detailed Payroll Reports

Make sure you build an efficient system for running payroll and tracking your business’ financial health so you’re always prepared to pay. Adds powerful capabilities on top of payroll, such as garnishment payment service, SUI management, background checks, and job posting through ZipRecruiter®1. Find, try and buy apps to help solve your biggest HR challenges, including time & labor management, recruitment & onboarding, compliance, and more.

Mobile payroll solutions and time tracking

Professional bookkeepers implement systems that automate routine tasks such as expense tracking, invoicing, and report generation. This automation reduces manual errors, improves efficiency, and ensures consistency across your financial records. By freeing up time spent on administrative work, you can focus on more critical aspects of growing your business.

It received top scores (4 and up) on construction-specific tools, reporting, and payroll features. It took a hit on pricing because you need to call for a quote—although, you can get basic pricing details adjusting entries through the quote generator on its website. 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. 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.

Payroll deductions, such as benefits, taxes, and garnishments, need special attention during three paycheck months. Depending on how your company processes these deductions, you may need to adjust them for the extra paycheck. Review your cash flow projections well in advance and adjust them to account for the extra payroll expense. If you use QuickBooks Online, employees can access their payslips via the employee portal. Ensure employee details and payment data are accurate before generating payslips to avoid errors. It includes tutorials, a help center, and product guides for self-service support.

• If you’ve made it this far, hopefully, you know a little more about what’s involved in construction payroll.
• Construction firms may have projects running in multiple locations at a single time.
• Lien waivers and retention management, ensuring compliance with legal requirements and preventing payment disputes.
• Plus, you’ll have all the tools you need to stay on top of your construction accounting and make smarter financial decisions.
• Payroll deductions, such as benefits, taxes, and garnishments, need special attention during three paycheck months.
• Construction bookkeeping services track all subcontractor agreements and payments, ensuring compliance with contracts and reducing the risk of disputes.

For long-term projects, consider using the percentage-of-completion method for revenue recognition. This method provides a more accurate picture of your financial position throughout the project lifecycle. Many states and local governments have strict deadlines about when employees have to be paid depending on when they have worked.

• Construction companies often have multiple employee classifications, such as hourly, salaried, and piece-rate workers.
• Retainage is a common practice in the construction industry where a percentage of the contract amount is withheld until the project is completed.
• With native integration to QuickBooks Accounting, you get automatic data imports for budgeting and job costing and the ease of using QuickBooks for invoicing.
• Points North uses the data collected through mobile time-tracking app to keep the information properly stored and to fill out certified payroll reports accurately and properly.
• It even offers fringe benefit management tools, enabling your employees to easily access fringe benefits while providing you with tax savings on workers’ comp and payroll taxes.
• For manual payroll, ensure your records include employee earnings, taxes, and any adjustments.

Precise Tracking of Project Costs

The duration for which you should retain certified payroll records can vary based on federal and state regulations. However, as a Food Truck Accounting general guideline, it’s advisable to keep certified payroll records for a minimum of three to four years. This duration allows for compliance with various statutes of limitations and auditing requirements. It’s crucial to check specific regulations in your jurisdiction, as they may dictate different retention periods.