With construction payroll software, you can access Accounting for Churches mobile apps that allow employees to clock in and out, view their pay stubs, and access their benefits information from anywhere. EBacon is a cloud-based solution designed for construction companies to manage payroll and manage fringe benefits. EBacon aims to have all necessary payroll documents, such as pay stubs and tax documents in one location with the ability to create weekly payroll reports. Additional features include time tracking, fringe management, and payroll reporting. Effective financial management is key in the construction industry, where complex projects, unpredictable cash flows, and stringent regulations create unique challenges. Builders and construction companies need tools designed to address these complexities, ensuring they can manage project costs, streamline operations, and maintain compliance.

Certified Payroll Reporting

Paper timesheets don’t really payroll work well for capturing all of this complexity, and having employees come to the office to punch in and out is a waste of time and money. Also, consider using conditional formatting to highlight any potential issues. For example, you can set up a rule to flag negative net pay amounts in red. Excel will automatically adjust the cell references for each row, saving you a ton of time. You’ll need to create a formula to compute this, and here’s where the magic happens.

Step 4: Make your payments

What’s more, a lack of organization can lead to critical requirements getting missed and a bigger financial burden being placed on the company. Or worse, it can cause contractors to be unaware of their inability to make payroll until it’s too late. Labor represents the largest expense for many construction companies, so it pays to have an efficient payroll system to manage the complexities involved. In this quick guide, we’ll outline the best practices for gathering payroll data, calculating withholdings, paying taxes and filing payroll. Once you have pay calculated for all of your employees and contractors, it’s time to pay your team.

The Complete Guide to Construction Payroll

Try to find systems that work together so you can use your data effectively for job costing, scheduling, invoicing, and more. In the construction industry, payroll takes on a heightened level of complexity. Construction business owners must juggle multiple locations, time-tracking complications, unions, and unique concepts such as prevailing wages and certified payroll. For this reason, we recommend you look into a digital time-tracking system.

• Additionally, construction payroll software can help you stay updated on the latest regulations and ensure that your payroll processes are always compliant.
• And many also offer built-in payroll services that will save you an incredible amount of time.
• So as you can see, determining gross wage is only the beginning, but it’s a crucial step as it serves as the foundation for all other payroll calculations to follow.
• These will normally not be encountered in the construction industry, and are for non-profits.
• That’s why I always recommend doing a secondary review of labor costs on a weekly basis for self-performing work.

It’s not cost-effective to have them commute to and from the office to clock in and out before driving to the job site, particularly if your worksites are spread out across a wide area. In bookkeeping, this is known as split payroll, and it increases the complexity of calculating pay exponentially.

• You’ll also be responsible for withholding garnished wages and making garnishment payments to the appropriate agencies.
• Just like in any other sector, you need to be aware of what taxes you and the employee owe when paying wages.
• This is where you might need to consult your records if you have different rates for different employees.
• The certified payroll would show many of the items written about here like the gross pay, tax withholdings, voluntary deductions and more.
• This federal law applies across the US, though many states will have their own local prevailing wage requirements that you will also need to consider.

As a construction-specific tool, our software can help you manage the complexities of different tax rates, benefits, overtime requirements and much more – wherever you or your team are working. If your employees are working on government contracts, you have another set of regulations and standards to grapple with – known as prevailing wages. Public projects are more likely to use union labor, especially in certain areas of the country like New York or New Jersey.

How To Choose Payroll Software For Your Small Business

Digital solutions make it easier to track employees on multiple job sites, thereby minimizing the risk of mistakes. payroll for construction companies However, accurate time tracking and payroll reports will provide crucial pieces of insight that you can use to improve your labor efficiency. This is where your payroll system and job costing system can work together. For this reason, you must ensure you can export your time tracking data in a format that’s compatible with your job costing and accounting software. Some of the more advanced tools (like Knowify) integrate all three together, so there’s no need to manually import and export data.

Don’t Get Caught Flat Footed

• When overtime is added into the equation, it can make it more complicated to track hours for each worker and their pay rates.
• Construction payroll compliance is a critical aspect of managing a construction company.
• These systems offer many different ways for employees to clock in and out.
• If employees are masquerading as contractors, you could end up on the wrong side of federal law.
• Managing payroll in construction can be challenging, but with the right payroll service, it doesn’t have to be.

Stay ahead of staffing demands and keep projects moving forward with the help of ADP’s robust tools for recruiting, managing and retaining employees. Using multiple tools can create silos making your data unusable from one system to another. The Department of Labor is responsible for setting and enforcing ‌labor standards per the Davis-Bacon Act, as well as making sure you pay overtime for more than 40 hours worked per week. For this reason, you’ll hear net wages referred to as “take-home pay” since that is the actual amount a worker will see on their paycheck. You will also be required to send all employees a W-2 by January 31st of each year for the preceding year’s earnings.