The Complexities of Processing Construction Payroll

Author
by Alex Gray
March 1, 2013
Read Time: Less than 2 Mins
Last Modified: January 30, 2024

Processing construction payroll is different from that of any other industry. Many contractors feel overwhelmed by all of the payroll compliance required for today’s construction companies. From working in multiple states and localities, on multiple jobs with multiple pay rates, to preparing and submitting reports, compliance can be frustrating and overwhelming.

As a construction company grows, it is important for its owners and office staff to be aware of the nuances of processing construction payroll and ways in which to handle it efficiently and effectively.

Let’s look at some of the payroll complexities that contractors deal with.

Multiple States, Jobs, Localities, and Pay Rates.

Contractors can work on different jobs in different cities, in different states, all in the same day. Calculating payroll for those employees can be difficult and hard to keep track of. Luckily, there are construction-specific accounting software packages and payroll services that 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.

Construction Reporting

A good construction-specific accounting package or a payroll service focused on construction will allow contractors to access many of the reports they need. Once payroll is complete, they can print the desired report with the click of a button. Some examples of these reports include:

Certified Payroll

• Union Reporting and Tracking

• New Hire

• EEO Minority Compliance

• Job History Detail

• Workers’ Compensation

• Job Labor

• Job Hour Variance

• Proofing Reports

• Custom Reports

• And many more

How To Deal With The Complexities Of Processing Construction Payroll

Using a construction-specific accounting package or construction payroll service has a multitude of advantages. In addition to handling construction complexities, sophisticated reporting capabilities, and integration with accounting software, they will also allow you to increase efficiency and create work opportunities. The biggest advantage, however, is being able to use products and services that are 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 construction payroll services that are truly industry-specific can only help you achieve these goals.

Share Article

Make Your Inbox Smarter
Keep on current news in the construction industry. Subscribe to free eNews!