How it runs for construction companies and contractors
Weekly certified payroll reports are prepared from the same data. Workers' compensation audits are supported with payroll by class code and state. You approve every run; we prepare, check and post.
What is payroll processing outsourcing?
Payroll processing outsourcing means a remote team prepares each pay run inside your payroll software: reconciling hours, entering changes, checking deductions and producing the run for the employer to approve. The employer keeps the payroll account, the bank authority and the legal responsibility. The provider posts the payroll journal and reconciles it, so payroll and the books agree.
What we handle for construction companies and contractors
- Timesheets collected by job, cost code and work classification
- Prevailing-wage rates applied and certified payroll reports prepared weekly
- Union fringes and dues tracked per agreement and remitted on schedule
- Labor burden allocated to jobs in the payroll journal
- Workers' compensation audit workpapers by class code and state
The KPI that matters here
Payroll journal posted with job allocation within 1 business day of each pay run.
Construction compliance notes
Sales tax on materials
In most US states a contractor pays sales tax on materials at purchase and does not charge tax on the finished job. A few states, including Arizona and Washington, tax the contract itself, and many states have separate rules for repair work versus new construction. We set up tax codes per state and contract type and track exempt purchases with resale or project certificates on file.
Retainage
Retainage withheld by owners is recorded as retainage receivable, and retainage you withhold from subcontractors is recorded as retainage payable. Several states cap retainage on public work, commonly at 5%, and set release deadlines after completion. We track the release date per contract so closeout billing goes out on time.
Job costing and WIP
Bonding companies and lenders expect a work-in-progress schedule that ties to the general ledger, with contract value, costs to date, estimated cost to complete and billings to date. We maintain the schedule monthly and book over and under billing entries so the P&L reflects percentage of completion.
CIS in the UK
Under the Construction Industry Scheme, UK contractors deduct 20% from registered subcontractors and 30% from unregistered ones, and file a monthly CIS return with HMRC. We verify subcontractors, prepare the deduction statements and CIS return workings, and reconcile deductions suffered against your PAYE liability. Your accountant or the business submits the return.
Construction software we work in
- QuickBooks Online
- QuickBooks Desktop
- Xero
- Bill.com
- Gusto
- Sage 50
- Buildertrend
- Procore
- All 50 platforms
More for construction companies and contractors
Other services for construction
Frequently asked questions
Do you prepare certified payroll reports?
Yes, we prepare weekly certified payroll reports from approved timesheets, including hours by classification, prevailing-wage rates and fringe payments, in the WH-347 format or the format your state agency requires. The reports are prepared for your signature and submission. We do not sign or submit them on your behalf.
How do you handle crews working in more than one state?
Each employee's hours are tracked by work location so state withholding, unemployment and workers' compensation are calculated where the work is performed. Reciprocity agreements between states are noted on the employee record. The payroll provider processes the run; our accountant prepares the inputs and reconciles the tax filings.
Can you support union payroll?
Yes, union agreements are set up with their wage scales, fringe rates and dues, and hours are reported by classification. Fringe contributions are accrued per job and remittance reports are prepared for each fund on its schedule. The same records support union audits and job cost reports, and any variance is listed for your review.
Ask an AI assistant to summarize this page
Opens the assistant with a prefilled prompt so you can check our claims against the page yourself.