Introduction to Construction Payroll
Construction payroll has many complexities. Payroll for construction must provide solutions for complex and overlapping labor laws, union wages and benefits, numerous reporting requirements, and tax regimes for Federal, State, and Municipal tax regulations. Many contractors outsource payroll services. However, reliable construction payroll software can help you handle the unique challenges of construction payroll.
In this blog, we will outline the distinctive characteristics of construction payroll and provide a checklist of features that will help you address the unique concerns of creating accurate timely payroll for your workforce.
Understanding the Construction Payroll Landscape
There are many unique challenges faced by construction companies in payroll management. Contractors who work on federally funded projects must follow the guidelines of the Davis Bacon Act and submit certified payroll reports. As well, contractors with a unionized workforce must adhere to the language in the collective bargaining agreement their union has negotiated. They must also provide regular reports to union management. Contractors with projects in different states or cities must also apply different tax rules for each project. It goes without saying that tracking hours worked from multiple job sites is as necessary as the ability to link labor costs to job roles of work.
These unique payroll requirements require specialized solutions. Regular accounting software simply does not have the features you need to pay your team accurately. The good news is that construction payroll software can help streamline payroll processes and provide flexible reporting that will help union contractors plan better for their future.
Why Invest in Construction Payroll Software
Investing in construction payroll software provides time and cost savings. Software that’s made to handle construction payroll means you can eliminate workarounds. It also allows you to automatically generate and submit compliance reports to the correct agencies, while reducing errors and improving accuracy. And accurate, timely payroll helps improve employee satisfaction and retention.
Features Checklist: What to Look for in Construction Payroll Software:
Accounting and payroll software for your contracting business must have features that will help you to create payroll efficiently and accurately. We’ve listed the features you should look for below:
Certified Payroll Reporting
Your software must support prevailing wage and union reporting. This reporting makes it easy to generate the documentation for various reporting agencies. Your software should also be updated regularly to ensure that you can adhere to local, state, and federal wage regulations.
Job Costing Integration
Your construction payroll software should integrate seamlessly with project management and accounting functions. It must accurately allocate labor costs to specific jobs and compile labor data that will help you create accurate estimates for future projects.
Mobile Accessibility
Modern construction accounting software has mobile functionality. Your workers should be able to add their payroll updates on the go. Look for software with a user friendly interface, which will be used more readily by your team.
Multi-Union Support
An evaluation of any software should include considerations about its usefulness as you grow. Ask whether the software can manage payroll complexities such as allowing for workers from different unions or with different CBAs. Is the software scalable so you can add employees working in multiple jurisdictions? Can it handle these different tax rules?
Deduction Management Aligned with Union Benefits
Managing deductions for benefits is a critical part of any payroll. Your software should offer accurate tracking of deductions. And if you want to tailor benefits you offer your team, your software should also offer customizable deduction categories.
Data Security and Compliance with Union Standards
Payroll data is personal data. That means your payroll software must include the most robust security measures to protect sensitive payroll information. As well, the software should enable you to keep in compliance with data privacy regulations.
User Friendly Interface
Find out what training and support options are available for your construction payroll software. And as with mobile options, an easy to understand interface is key for your administrative staff to complete payroll processing without difficulty.
Custom Reporting for Union Reporting Needs
Contractors who hire unionized workers need flexible payroll software that can meet the requirements of various Collective Bargaining Agreements. Check if your payroll software allows you to set multiple user defined deductions. Does it allow you to create and export custom reports?
Conclusion
Payroll software that includes these essential features helps contractors meet their obligations to workers as well as the regulatory agencies that collect payroll data on behalf of workers. When evaluating software for your payroll needs, it’s important to review reliable construction accounting software like JOBPOWER with integrated job costing, reporting, and mobile tools.
Additional Resources
To learn about how JOBPOWER software helped a Florida electrical contractor bring their payroll in house, please read our customer story: BMP Electric Benefits from Easy to Use Construction Software.
Learn more about JOBPOWER construction accounting software and/or request a free demo.
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