Choosing the Right Construction Payroll Service

In-house construction payroll can be time-consuming and complex. You have to juggle things like certified payroll, union payroll and multi-state payroll — sometimes at the same time!

Errors and delays result in costly fines and may result in payroll disputes and even being removed from projects. You may also have to hire additional payroll clerks to meet demand, which could add significant overhead costs.But there is another way: outsourcing your payroll to a construction payroll service.

According to B2B Reviews, 61% of companies outsource some or all their payroll operations. With the growing reliance on construction payroll services, it’s important to know what to look for to determine the right option for your operations.

So, let’s explore a few things to keep in mind so you find the construction payroll service that best fits your construction business.

Key Takeaways

• Create a list of common construction payroll pain points you experience to begin the research process.
• Check out reviews of several popular construction payroll service providers — like Payroll4Construction — to help determine reliability and narrow down your options.
• Develop a list of must-have features to guide you toward stronger construction payroll service providers.
• Draft questions to ensure you find the best service for your operations.

Evaluating Your Construction Payroll Needs

Before you begin your research, it’s important to understand your needs. A few things to consider include:

• Multi-state work
• Federal projects
• Seasonal workers

Each of these come with their own set of challenges and labor compliance items, including prevailing wage laws, to keep in mind that some payroll services may not be equipped to handle.

When it comes to construction payroll, contractor compliance is the most important factor for construction companies because non-compliance may result in:

• Costly fines
• Payroll disputes
• Project delays
• Removal from the job

From there, identify your current construction payroll pain points, like managing labor costs, and make a list of must-have features to address them. Some common pain points involve:

• Prevailing wages calculations and compliance
• Certified payroll forms (WH-347)
• Multi-state timecards

Once you’ve identified your pain points, you can begin researching construction payroll services that should address them.

Examine Features and Benefits

Now that you know what you need out of a construction payroll service and you’ve read several reviews about potential options, it’s time to explore features and benefits.

Some common construction payroll service features you should be looking for include:

• Certified payroll reporting
• Union payroll, tracking and reporting
• Multi-state, rate, labor union and trade payroll
• Direct deposits, checks and W-2s
• Tax filings (federal, state and local)
• Integration with other software

Some providers may not offer all these features, so you should rank them by importance. That way you can determine your must-have features, which will help you further narrow down your list before reaching out to a few construction payroll service providers for demonstrations.

Reputation and Reviews

As you begin your research, check out company reviews on software review sites, like Capterra, to get a better understanding of how clients feel and any common pain points or complaints they have about their payroll service.

A few green and red flags to keep in mind when reading reviews include:

• Green flag: Responsive and knowledgeable support
• Red flag: Hard to reach without any construction payroll expertise
• Green flag: Payroll taxes are easier for clients and they’re compliant
• Red flag: Taxes are actually more difficult for clients, and they’re found to be noncompliant
• Green flag: An abundance of training opportunities
• Red flag: No training or classes offered

These reviews provide you with the information you need to build a pros and cons list so you can focus on the strongest options as you go deeper into your research.

Quality of Support

The construction industry is constantly evolving, meaning compliance items can change, you may hire more workers and take on new construction projects across multiple states.

With all these changes in mind, it’s important your construction payroll service is backed by a team of responsive construction payroll management experts. These experts should be able to:

• Handle your complex payroll processing
• Help you submit timely construction payroll reports to maintain compliance
• Stay up to date with any labor compliance changes
• Answer any of your payroll or payroll compliance questions in a timely manner

Once you’ve gathered enough information, it’s time to talk to a construction payroll service representative.

Interviewing Potential Construction Payroll Service Providers

Before getting on a call with a construction payroll service provider, use the information you’ve compiled to create questions. Some considerations include:

1. How do you handle certified payroll and prevailing wage compliance?
2. Is your system able to track job costing?
3. Do you integrate with other software, like construction accounting software or time tracking apps?
4. How large is your support team, and what do they do during audits?
5. Can my CPA easily access payroll reports without having to pay for a plan?
6. What’s the payment structure like for your service?
7. How easy is it to implement and transfer my historical data?

The answers to these questions will help further narrow down your list of potential service providers.

The final step is taking everything — from reviews, features, support and the answers you’ve received — into account to select the best construction payroll service for your operations.

Simplify Your Construction Payroll With Payroll4Construction

Choosing the right construction payroll service can be challenging. But by evaluating your needs, determining must-have features, reading reviews and asking the right questions, you can be sure to find the right fit.

By narrowing your scope to include construction-specific payroll services — like Payroll4Construction — you can be sure your construction payroll is in good hands.

Payroll4Construction completes your entire payroll process and helps you with compliance management. You also get:

• Access to a responsive team of construction payroll experts with 40+ years of experience
• Free construction reports, like certified payroll, workers’ compensation, union reporting and tracking and more
• A free license for your construction CPA
• Multi-state, rate, trade and union payroll
• Integrations with popular construction software, like FOUNDATION® construction accounting and WorkMax time tracking app.

Payroll4Construction handles your complex construction payroll needs so you can focus on growing your construction business. For more information about Payroll4Construction, speak with an expert now!