Simply enter your employees’ or contractors’ details and set the payroll dates and rules. QuickBooks Payroll will automatically calculate your payroll every month, ensuring on-time payments. Accurate recordkeeping is not only vital for in-house payroll but is also required for companies to comply with labor laws, including the Fair Labor Standards Act (FLSA). Union payroll companies provide accurate recordkeeping via cloud-based storage and documented audit trails that adhere to all union, municipality, state or federal regulations. Construction companies maintaining mobile workforces face administrative difficulties managing and tracking each employee’s work hours, overtime and travel expenses. For legal protection, it’s important to know where employees worked, what they did and how long they were on the jobsite, regardless of how many localities are involved.

Step 4: Make your payments

The laws that create the regulations for prevailing wage work include penalties for violations. Federal agencies that award contracts have daily enforcement responsibilities to ensure that contractors working on their projects are complying with the law. The Department of Labor’s Wage and Hour ledger account Division is responsible for investigating and enforcing the law. It can disrupt healthy relationships with unions, causing unnecessary complications in workforce management. From a legal perspective, inaccuracy in payroll can lead to non-compliance with tax laws, resulting in penalties, legal actions, or even revocation of operating licenses.

• QuickBooks helps simplify invoicing by allowing you to create project-specific invoices.
• Unlike traditional payroll software, it accounts for industry-specific challenges such as job costing, union wage requirements, and multi-state compliance.
• Certified Payroll is complex and so are the reporting requirements for owner/employees.
• Manage multiple timesheets, approve time when you’re ready, and edit, publish, and share schedules with with your team.
• 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.

Solutions

You must file Form 940, or the FUTA (Employer’s Annual Federal Unemployment) Tax Return. The 940 reports your yearly information for federal unemployment purposes, which funds how employees are able to obtain unemployment insurance benefits when there is a job separation. When you electronically deposit the entire FUTA tax by the due date it gives you 10 extra calendar days to file. The payroll amounts you pay through EFTPS will be shown on the quarterly 941 you need to report to the IRS. It is to be filed for the previous quarters activity related to the payroll taxes.

Integration with Construction Management Software

All factors in our reviews are scored on a 10-point scale – technically 11 points – from 0-10. It also helps you configure custom overtime how to do payroll for a construction company rules and comply with audits with just a few clicks. ConstructionPayroll’s time clock feature allows employees to clock in remotely while collecting their geolocation details.

Contractors and subcontractors who are working federally-funded construction projects have an added requirement known as certified payroll reporting. Failure to submit reports on time can result in contract funds being withheld and ineligibility for future projects funded by the federal government. Certified Payroll reporting requirements for employees, 1099 workers and subcontractors causes confusion for many contractors working on prevailing wage/government funded construction projects. Accurate calculations are crucial for understanding the full extent of labor costs. This includes all the components that go into construction labor burden calculations, such as wages, taxes, and benefits.

• A good acid test is if a particular worker is doing most or all their work for your company – they’re probably an employee.
• For example, you can create a job for a specific construction site and link any materials or expenses directly to that job.
• The next step is subtracting any deductions from the gross amount of pay earned for each employee to determine their net pay.
• Setting up payroll services in a construction firm involves intricate procedures to handle diverse aspects unique to the industry.
• When we reviewed payroll each Monday morning, we would call it a labor distribution report.
• But you could spend hours just collecting, reviewing, and confirming your payroll data.

Simplify Construction Payroll with CIS Payroll Services by Direct Payroll Services

Construction payroll software can help companies make an informed decision by providing a scalable and flexible solution that can adapt to their changing needs. Accounting for Marketing Agencies Whether you choose to outsource or handle payroll in-house, having the right software can streamline processes, improve accuracy, and ensure compliance. The federal certified payroll form is the WH347, but many states have their own forms for reporting.

For example, you can track labor costs by project, monitor payroll trends, and ensure compliance with regulations. This information can help you make data-driven decisions to improve productivity, reduce costs, and drive business growth. Payroll reporting and analytics are essential for construction companies to make informed decisions about their workforce and labor costs. With detailed reports and analytics, you can gain valuable insights into labor costs, job costing, and payroll taxes, helping you identify areas where you can optimize your workforce and reduce costs.

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

These need to be included in the report, and the reports must be submitted to the relevant regulatory agencies in a timely manner to maintain compliance with labor laws and regulations. Some union payroll companies can prepare accurate certified payroll reports and union reports right after payroll is completed, saving you valuable time and ensuring compliance with labor laws and regulations. Managing payroll manually in a construction business can be tedious and error-prone. 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.

Workyard provides leading workforce management software to construction, home services, and property maintenance companies of all sizes. It calculates pay rates, taxes, and deductions, processing timecards without needing to re-enter rates. Public projects are more likely to use union labor, especially in certain areas of the country like New York or New Jersey. When using union labor, there are regulations and rule sets that dictate the pay rates and benefits workers receive. First, construction companies employ staff members who get paid annual salaries to do their jobs. Roles like project manager, project engineer and project executive are internal staff who may get paid their salaried rate on each paycheck.