Managers use the system to review and approve timesheets with ease before using them to process payroll. In this article, we’ll explore the top payroll services for construction and what to look for in a payroll provider. Meanwhile, limiting overtime hours to only when they’re absolutely necessary will help significantly reduce your labor costs. As a bonus, not having to calculate overtime hours and pay — in addition to regular and variable time and pay — will save you a lot of time when manually running payroll.

How do you do construction accounting?

This not only buttons up your payroll system but also allows you to use your labor data to strengthen other areas of your business. Organized, clean time tracking can be a huge boost to improving your job costing, scheduling, pricing, estimating, and more. Another advantage of digital time tracking is the ability to integrate time data with other tools.

• Certified payroll requires that contractors and subcontractors report prevailing wages in accordance with DBRA on a weekly basis, even if work is temporarily halted.
• But let’s face it, managing workers’ compensation and HR can really slow you down and cost you by doing it all yourself.
• It offers several integration options, including with construction management software systems like Procore and PlanGrid.
• Managing payroll in the construction industry is daunting due to the sector’s diverse workforce, fluctuating work hours, and regulations.
• For construction companies, managing payroll manually can be time-consuming and prone to errors, especially with varying pay rates, overtime rules, and government-mandated reporting.

What users say about QuickBooks Payroll

Sometimes, it’s accidental — born from bad habits or committed out of ignorance. 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. To get help with your retirement plan, FSA, or employee forms, please click here. A competitive benefits package can be a tool for keeping talented employees.

I also made sure the software has:

• Try to find systems that work together so you can use your data effectively for job costing, scheduling, invoicing, and more.
• There are a lot of moving parts that open you up to accidentally calculating employee wages inaccurately, failing to remain tax compliant, and winding up legally liable.
• If you deal with tough payroll issues like prevailing wages or union compliance, we have you covered.
• What’s most important is taking any and all desired steps to streamline the process for yourself and your employees.
• Time tracking integration allows seamless flow from field time collection to payroll processing.

But Roll by ADP lets you easily run payroll yourself in under a minute and handles tax filing too. Construction companies have had a difficult few years, with COVID-19 closing building sites across the globe. But many experts are predicting that construction will come back strong, playing a vital role in our post-pandemic recovery. Construction companies – even solopreneur or small business companies – should be positioned for growth in 2021 and beyond, and payroll administration is an important piece of the puzzle. We’re willing to bet that construction payroll is one of Statement of Comprehensive Income the toughest issues your office staff has to deal with.

Integrating Compliance With Business Operations: Turning Regulations Into Opportunity in Modern Construction

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. Certified payroll is a weekly report submitted to government agencies that certify that you’ve paid employees the correct prevailing wage rate. These requirements first came into use as a result of the labor movements of the Great Depression. The Davis-Bacon and Related Acts, passed in 1931, laid the foundation for both prevailing wages and certified payroll. The act states that general contractors and subcontractors on federal projects over $2,000 must pay laborers and mechanics at the prevailing wage of similarly contracted projects. Digital solutions make it easier to track employees on multiple job sites, thereby minimizing the risk of mistakes.

• ADP Workforce Now is a cloud-based payroll and HR solution that offers a range of features for construction companies.
• Paycor delivers a comprehensive payroll and HR platform with standout features tailored for managing diverse construction workforces.
• Accuracy will be impossible to guarantee, resulting in incorrect payroll calculations.
• Typos happen, but you should actively try to avoid them as much as possible.
• We’re here to keep things simple, so you can manage the job and keep your eyes on the prize.
• ‍Gusto simplifies construction payroll with automated tax processing and filings, particularly helpful for construction companies operating across multiple states.
• A payroll provider like Payroll4Construction handles everything from processing paychecks for construction workers to helping construction businesses stay compliant.

Every week they’d go back and review all the costs for how much time recording transactions and money they spent on project areas, like installing a specific type of electrical work. This article will discuss some unique intricacies of construction payroll and how contractors can develop systems to get extra intelligence from time sheets. FOUNDATION’s automation ensures accurate, timely payroll reports that reduce risk and keep projects compliant. For businesses employing 1-49 employees, the software offers flexible pricing plans, starting from $79/month plus $4/employee. With limited options on the market at the time, we turned to developing our own software to make time tracking and running payroll a breeze. Once you have pay calculated for all of your employees and contractors, it’s time to pay your team.

Key Features

Newly founded in 2021, the platform is already gaining traction with construction companies. It unifies payroll, compliance, HR, and job costing into one system with support for several constructions-specific reports and calculations. Sage HCM is best suited for construction companies (typically with 150 employees or more) who want one configurable system instead of juggling multiple apps.

Here’s a look at the top 10 HR software solutions for construction companies in 2025. Construction companies need payroll software with job costing features to allocate labor costs effectively. Choose a solution that integrates with accounting and project management tools to track payroll expenses per job. With fluctuating job sites, tax regulations, and a mix of salaried and hourly workers, traditional payroll systems often fall short.