By Mike Ode
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, the 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. Here are some of the payroll complexities that contractors deal with:
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.
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:
Using a construction-specific accounting package or construction-specific 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 products and services that are truly industry-specific can only help you achieve these goals.
Mike Ode is president of Foundation Software and CEO of Payroll4Construction.com. Mike can be reached at (800) 246-0800 or firstname.lastname@example.org.
Published in CEA Quarterly Newsletter (October 2010)