Most companies, whether they’re construction or not, are familiar with big name payroll services. These are great companies that can provide payroll services to many different types of industries, but they don’t necessarily offer construction payroll services.
Processing payroll for construction is different from that of any other industry. Most of the big name payroll service providers aren’t able to handle the complexities of construction payroll, like Certified Payroll and other reporting requirements, employees working in multiple trades, unions, pay rates, cities, and more. Because of this, contractors using big name payroll services end up doing more work manually, or pay a third-party service additional fees to produce items not available through their payroll provider.
Construction payroll services offer a better solution. These payroll services are focused solely on construction and are familiar with the complexities and nuances of processing construction payroll. Construction payroll services handle all basic payroll processing such as checks, direct deposit, tax filing, W2’s, and third-party sick pay. In addition, they offer construction specific advantages such as:
Multiple States, Jobs, Localities, and Pay Rates.
Contractors can work in different cities, on different jobs, in different states all in the same day! Construction payroll services are able to calculate payroll for employees working in multiple states and localities, on multiple jobs with multiple pay rates—all in the same pay period. Many even offer more efficient timecard entry with default settings for a reduced risk of errors.
Reports are useful tools in helping contractors manage their jobs better, but creating reports manually is tedious, and can take hours, days, or even weeks. Take Certified Payroll reports, for example: if a company is already doing prevailing wage work, then they know how long preparing a Certified Payroll report can take, and how much detailed information is needed to complete one. With many construction-specific payroll services, it’s easy. Upon payroll completion, contractors can access many reports that they can print with the click of a button.
This expanded reporting capability also opens up new work opportunities. Many contractors who aren’t currently bidding on prevailing wage work because of the reporting requirements can now create reports with ease. In the end, construction-specific payroll services open up new work opportunities, and ultimately, increases profitability.
In addition to reports concerning prevailing wage work, construction-specific payroll services offer many types of reports. Some of these reports include:
• Certified Payroll
• New Hire
• EEO Minority Compliance
• Job History Detail
• Workers’ Compensation
• Job Labor
• Job Hour Variance
• Proofing Reports
• Union Reporting & Tracking
• Custom Reports
• And many more
Integration with Accounting Software.
Many construction-specific payroll services have the ability to integrate with select accounting software programs. Processed payroll data can be imported usually in just a few clicks, updating the General Ledger and jobs with labor and burden costs. This allows for a quick and easy transfer of payroll data with less errors and increased efficiency.
Graduating to a Construction-Specific Payroll Service
Deciding to use a construction-specific payroll service has a multitude of advantages. In addition to handling construction complexities, sophisticated reporting capabilities, and integration with accounting software, a construction-specific payroll service will also increase efficiency and create work opportunities. The biggest advantage, however, is being able to use a service that understands your industry and is built for construction.
Part of growing as a business means finding the tools that will best serve you in the long run, increasing profitability and making your job easier. Taking advantage of products and services that are truly industry-specific can only help you achieve these goals.