Construction payroll 101: A beginner’s guide for contractors

construction company payroll

The software can also greatly reduce the time it takes to submit certified payroll through government-funded projects. You will need to contact the company for a quote, and check to see if eBacon works in your state before you do. With so many offerings under its belt, you’ll need to work with an agent to build out the package that works best for you.

Financial management and compliance

construction company payroll

Your list is also a checkpoint, allowing you to quickly identify missed and problematic steps. Even if you’re using a construction payroll service provider, a checklist can help you stay organized and in the know as a business owner. While the certified payroll report ensures that you pay employees a fair rate, the prevailing wage describes what that fair rate is. One of the problems that Davis-Beacon was trying to solve had to do with projects that hired workers from multiple states outside of the job site. In construction, much of the work happens on-site, so portable access is essential.

What makes construction payroll different from other industries?

construction company payroll

Doing so will help you understand how efficient each crew was on CARES Act every task of a job. It could be that there are too many workers in one phase or not enough in another. Use this information to better allocate your crew for tasks that you know will require extra hands or tasks that a limited crew can complete.

Accounting Software for Builders and Construction Firms: Overcoming Obstacles and Controlling Costs

construction company payroll

There are thousands of online user reviews for various ADP Payroll products. It has a good score and thousands of ratings on Capterra for its payroll products. For additional compliance insights, see our state-specific guides, like Arizona labor laws. Manage multiple timesheets, approve time when you’re ready, and edit, publish, and share schedules with with your team.

construction company payroll

Tools Employees Love!

It’s likely that the root cause of these troubles is a disorganized time-tracking system. A disjointed time-tracking process can cause more financial harm than you may realize. For example, inaccurate payroll data will mean some employees get paid too much while others payroll for construction companies may be underpaid.

  • It also calculates pay rates, taxes, and deductions, processing timecards without needing to re-enter rates.
  • Below we’ve listed some of the most prevalent mistakes to avoid when running payroll and a few tips to help you avoid them.
  • Gusto provides customer support regardless of what features you use on its platform.
  • A service business, for example, will see 50% or more of total costs allocated toward labor.
  • 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.

Conclusion for 2025 Payroll and Labor Law Updates

construction company payroll

This is another area where digital time tracking will help capture all hours that qualify for overtime pay. This may include work during breaks, travel between sites, team meetings, etc. You must appropriately classify overtime hours to ensure employees are fairly compensated. 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. Try to find systems that work together so you can use your data effectively for job costing, scheduling, invoicing, and more.

  • Without the right tools, accurately tracking your workers’ hours, complying with laws, and paying your workforce can be challenging.
  • Legacy systems and manual processes are not only inefficient but also lack the integration capabilities needed to maintain transparency across projects.
  • We looked at payroll services with construction features, including those that are part of a construction program.
  • On top of that, you must have a system in place that can capture, organize, and report on tracked time so you can actually use it for things like payroll, job costing, and scheduling.
  • Otherwise, financial data won’t flow smoothly between these solutions, creating silos and visibility gaps.
  • Workstream’s HR app on the App Store and Play Store only has a few user reviews, and they’re usually a mix of good and bad reviews.
  • Not only will you always be up to speed, you’ll also see how exactly payroll taxes play into each outgoing paycheck.
  • These tools can help ensure that employees are accurately recording their hours worked, even when they are working remotely or on-the-go.
  • It offers an accuracy guarantee and tax penalty protection to keep you covered at tax time.
  • Its QuickBooks Payroll Premium and Elite plans even include same-day direct deposit, something not offered by others on our list (except eBacon).
  • ADP also regularly provides webinars, events, tools, and integrations to assist clients with their needs.

When the first milestone is achieved, look at your material, labor and overhead expenses. If these costs went above what was originally forecast, you Law Firm Accounts Receivable Management can correct the issues that caused the overage in successive milestones and bring the project back within budget. Another way to control costs is to spread overhead expenses among multiple jobs that might use the same equipment. ADP Workforce Now’s workflow process allows us to see the modules in action so we can review and approve items across different departments without having to re-enter data.

Back To Top