Managing payroll in the construction industry is no small feat. Unlike other sectors, construction payroll involves unique challenges, making the process burdensome and frustrating.
The specific challenges that make construction payroll a dreaded task include managing multi-state, multi-rate, and multi-trade wage calculations, handling job-based tax calculations, and integrating with existing time-tracking and accounting software.
While you may think the average payroll software can cover these industry-specific needs, you’re sadly wrong. That’s where we step in.
ConstructionPayroll.com offers a comprehensive payroll service & easy-to-use software designed to address these complexities, ensuring your payroll process is as smooth and accurate as possible.
Government-Funded Construction Projects
Certified construction payroll becomes significantly more complex when government-funded construction projects are involved due to the stringent compliance requirements set by federal regulations.
One key component in this process is the use of Form WH-347, which is mandated by the U.S. Department of Labor for reporting weekly payroll information on projects subject to the Davis-Bacon and Related Acts (DBRA).
This form requires detailed documentation of each worker’s hours, wages, and classifications, ensuring that prevailing wage rates are met. Employers must also certify the accuracy of the payroll and compliance with labor laws, adding another layer of administrative oversight.
ConstructionPayroll.com automatically fills out the WH-347 form with the click of a button using the payroll data used to pay your employees, so you can simply review and send. It’s that easy.
Certified Payroll Reporting
Certified payroll submissions are required for construction contractors or subcontractors working on federally financed or assisted construction contracts that exceed $2,000 in total cost. These requirements apply to many projects, such as public works and public school projects.
Activities requiring certified payroll filings include painting, electrical work, drywall installation, plumbing, and even cleaning tasks. The submission ensures compliance with federal wage laws, particularly under the Davis-Bacon and Related Acts (DBRA), which mandate that workers on these projects receive prevailing wages.
Proper and timely certified payroll submissions are crucial for maintaining current and future government contract eligibility and allows for the release of monthly draw requests to fund the project.
Job Costing Reports
Effective management of construction projects requires meticulous attention to several critical factors, including job costing, job labor, job hour variance, and EEO minority compliance.
Job costing involves accurately estimating and tracking all expenses associated with a project, from materials to labor, ensuring the project remains within budget.
Job labor focuses on the detailed documentation of hours worked and wages paid to employees, which is essential for payroll accuracy and compliance with prevailing wage laws. Monitoring job hour variance is crucial for identifying discrepancies between projected and actual labor hours, allowing for timely adjustments to keep the project on track.
By integrating job cost directly into the payroll process, construction businesses can get better at estimating, which in turn helps them become more profitable with less overhead. Job costing allows for weekly, and sometimes daily progress reports to know where you’re at on your jobs before it’s too late.
Workers Compensation
Workers’ compensation is a crucial aspect of construction business operations, designed to provide financial and medical benefits to employees who sustain work-related injuries or illnesses.
A lot of contractors don’t know that you can save money on workers comp insurance by providing insight into what their workers are performing in the field. For example, if you’re a roofing contractor, your insurance company might assume that everyone is working on a roof, putting everyone at the same rate. However, if you can classify positions within your payroll, you can save a ton of money for the workers who have less risk in their work. The person on the ground at the roofing company shouldn’t be billed at the same rate as the roofing workers. Same could be said for low voltage electrical work vs. high voltage electrical work.
Bear in mind that there is no worker’s comp requirement in Texas, but operating your business without it puts your business at risk for personal injury lawsuits.
Construction Payroll Tax Filings Made Easy!
Calculating construction payroll taxes can be extremely time-consuming, and mistakes in this process can be very costly.
Inaccurate calculation and payment of these taxes can result in some of the most severe tax penalties. To address this, ConstructionPayroll.com offers full-service payroll software that automates tax calculations for each employee based on job location (very important in states with local taxes), their home address, or the business address using GPS level accuracy.
We invite you to reach out and check out what makes ConstructionPayroll.com stand out from the rest!