Construction payroll 101: A beginner’s guide for contractors

how to do payroll for a construction company

Automating tax payments ensures payroll taxes are submitted accurately and on time, minimizing errors and avoiding costly late penalties. We’ll touch on the major challenges of payroll management for construction, share best practices to streamline the process and explain how mobile forms can help save time and reduce errors. Secondly, craft workers are paid hourly and sometimes hired through a union hall or hiring agency. View project and labor costs by crew, independent contractors, and more so you always know how your business is doing. The DBA Legal E-Billing provides that all workers covered by the Act be paid according to prevailing wage laws. 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.

how to do payroll for a construction company

Why it’s Important to Get Payroll Right

This process will involve having employees clock in and out, recording start and end times, and tracking the number of hours worked each day and each week. Jonas Construction is best suited for specialty contractors, service-based construction firms, and mid-sized contractors needing strong job costing and dispatch scheduling. It’s particularly useful for mechanical, electrical, HVAC, and plumbing contractors who need real-time cost tracking, subcontractor management, and efficient service billing.

how to do payroll for a construction company

Tips For Contractors & Subcontractors for Certified Payroll

In addition, any mix of paper and digital time-tracking methods means you’ll have to spend valuable time translating bad handwriting, bookkeeping verifying hours, and tediously moving data from one system to another. If things get too complicated, you may even need to bring on a bookkeeper to help manage it all, which is another cost to factor into your business that you may not have the capital for. Since no two projects are ever the same, each job site will have unique schedules, conditions, tasks, and multiple pay rates. 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.

Best practices: How to get construction payroll right the first time

For government-funded projects, certified payroll reporting ensures compliance with prevailing wage laws and labor standards. Payroll services for construction include compliance features that help businesses adhere to multi-state labor laws, certified payroll requirements, and union regulations. Digital solutions make it easier to track employees on multiple job sites, thereby minimizing the risk of mistakes. Managing payroll in construction can be challenging, but with the right payroll service, it doesn’t have to be. Always take the time to research and compare different options before making your final decision.

  • It will also allow you to plan for any potential shortcomings or other issues arising from holiday closures or oddities in the calendar.
  • The key here is that you need to be able to collect time on a consistent basis every payroll period.
  • Gusto’s customer service team is highly responsive and provides excellent support to its users.
  • Procore is best suited for large general contractors and developers who are handling multiple construction projects with complex financial structures.
  • This system benefits both parties by ensuring fair compensation while keeping the project financially stable.
  • If you decide to stay with the newly acquired provider, it’s important to stay in communication with them to ensure a seamless transition.
  • Making a payroll mistake is a surefire way to lower employee morale, so it’s important to be aware of these dates ahead of time.

Gusto Features

how to do payroll for a construction company

Consider the needs of every user and provide tools that are simple to use and easy to understand for both sides of your business. Reliable customer support, combined with expertise in construction payroll services, is essential for handling complex wage calculations, tax filings, and compliance issues. A mobile-friendly payroll solution enables approvals, payment tracking, and real-time adjustments from job sites.

Construction Collaboration: Navigating the Intersection of Project Management and Accounting

how to do payroll for a construction company

In this guide, we’ll explore the best construction payroll software options for 2025, key features to look for, and how to choose the right solution for your business. In an industry where time is money, having the ability to manage payroll processes on-the-go is a game-changer. Mobile payroll solutions provide the flexibility and convenience needed to keep your payroll processes running smoothly, no matter where you are. On the other hand, in-house processing can provide more control over payroll processes.

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