Payroll processing is the method of paying employees and contractors, including managing payroll taxes, withholding, deductions, calculating pay, and keeping payroll records. Create multiple pay rates for the same worker or for each crew member in QuickBooks. With straightforward reporting features, track expenses and get labor costs for each project.

Integrated project management

In our evaluation, Gusto scored 4.14 out of 5 with high marks in nearly all criteria. It lost points because its multi-state payroll feature is available only in higher tiers and Gusto lacks the specialized features for construction that you can find with eBacon and Payroll4Construction. If you are a small business that doesn’t do a lot of government contracts or union work, its reasonably priced plans and user-friendly tools make it a good choice.

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For example, workers who work at more than one jobsite each day may not realize they’ve exceeded the eight-hour limit, but the software will automatically apply overtime pay rates to that extra time. Contractors working on a project will fill out a timesheet at the end of each day. Payroll software will then indicate which taxes will be withheld, applicable wage rates and if overtime pay rates should apply. Employers will need to be able to match employees to the proper job codes and wage rates to create an accurate, certified payroll. Failure to do this could result in incorrect wages being paid and the wrong information being submitted to the government.

What is construction payroll?

Integrated project management tools ensure that all team members — whether in the field or the office — have access to the same data, payroll improving collaboration and decision-making. This integration helps prevent delays, minimizes miscommunication, and keeps projects on schedule and within budget. To maximize payroll efficiency, it’s important to look for a provider that integrates with your existing construction management software systems.

• Construction projects often face changes in the number and type of workers, depending on project phases, seasonal demand or contract work.
• Nick Foucault, Director of Points North who assists contractors with certified payroll, has been helping contractors for a decade with the complicated process.
• DoForms serves as a strategic investment that helps you modernize payroll management in construction and boost productivity by enhancing accuracy, compliance and employee satisfaction.
• They’ll handle complex prevailing wage calculations and mandatory certified payroll reporting helping simplify these processes through automated calculations.
• Since different jobs pay different amounts in different locales (usually designated as counties), the Prevailing Wage Law takes into account the wages of the local economy.

With this information, you can mitigate cash flow issues, schedule the right mix of workers, and adjust budgets. Paychex Flex is a cloud-based payroll and HR solution that can handle certified payroll reporting, timekeeping, and benefits administration. It offers several integration options, including with construction management software systems like Procore and PlanGrid.

If Form 941 (Employer’s Quarterly Federal Tax Return) does not match their W-2, they’ll have to sort through loads of paperwork that could delay their refund. payroll for construction companies Failing to consider overtime pay or miscalculating it can result in costly fines and penalties. This is another area where digital time tracking will help capture all hours that qualify for overtime pay.

• If you have a government contract project that applies to the DBA, you won’t get paid without filling out federal form WH-347.
• Yes, doForms offers offline capabilities, allowing construction workers to input their hours and data even in areas without Internet access.
• From tight deadlines to complex projects, managing a construction workforce is no easy feat.
• Digital tracking also removes the need to interpret or validate time since it’s automatically stored and organized in a single location.
• With good financial oversight, based on data from the previous year’s payroll and your expected projects and growth rate this year, you can determine an estimated forecast of your payroll expenses.
• This serves a crucial business function because calculating an employee’s take-home pay isn’t as simple as just tallying up hours worked and multiplying it against their hourly rate.
• 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.

Failing to prevent time theft

An employee may have their wages garnished to cover child support payments, student loan payments, court-ordered settlements, and more. If your employee has been ordered to have their wages garnished, you’ll receive correspondence about it after completing your new-hire reporting. Withholding deductions just means that you reserve a portion of your employee’s pay to remit at a later Food Truck Accounting date. You don’t have to do anything special when withholding payroll deductions — simply let your employee know how much was withheld for each payroll tax or deduction via their pay stub. That being said, choosing the right payroll schedule for your business depends on a multitude of factors, not least of which is your state’s payday laws.