Processing payroll is not something easy and it requires an expert because it entails a lot of things. Most industries find payroll processing to be cumbersome and therefore they have to hire an expert to assist. Construction payroll has more complexities and cannot be compared to any other kind of payroll. Payroll outsourcing has helped many companies to move to the next level and more so the construction payroll that cannot be likened to any typical business in the world. In construction employees are paid differently because they work in different locations and the difference in wage is brought by the job function they handle and the location where they are doing the job from. In construction payroll you have to factor in shifting pay rates, local taxes and multi-state. Here are factors to determine when it makes sense to outsource payroll.
In the past it was hard for the traditional payroll providers to handle any reports that were generated by the payroll. They mainly put their focus on the construction industry. Nowadays advancement in technology has made construction reporting to be easier and not as in the past.
Job Cost Reporting
Many contractors take much time to enter manually the labour hours that their employees have worked so that it can be easy to make payments at the end of the month. You find them with spreadsheets or any other systems that they find useful in recording useful data. Contractors should be able to look for a service that will enable them to be able to track workers compensation, labour hours, burden (SUTA, FUTA, FICA) and other benefits. Getting a comprehensive service to perform payroll services will help solve the problems of job cost reporting. Good construction payroll enhances sophisticated reports including tracking the following things: labour and burden by cost, percentage complete, estimate vs. actual, projected costs to complete, production and many more.
Certified payroll reports
Construction payrolls are very hard to prepare and therefore they need an expert to handle the services. Certified payroll reports are a requirement by many states and therefore should be prepared by a professional who understands construction payroll. This kind of payroll service is cumbersome and complex to prepare and it can only be done with the help of automated systems. It is important to know because of advancement in technology, a construction-specific payroll service must have the capacity to prepare these reports instantly and in compliance with some specifications.
New Hire Reporting, Workers’ compensation, EEO Minority Compliance and others
Since most of the labour-intensive contractors are busy it is sometimes hard for them to comply with all the federal employment laws. For example it is very hard for one to manually track all the employees who are in the field because they keep changing their job. This also makes it hard for the employer to do proper workers’ compensation classifications. The main disadvantage of this is that it is time consuming. The solution to this is choosing a proper payroll service means so that all the information concerning the employees are accurately tracked and reported.