In short

Cleaning company payroll pays hourly cleaners across many sites, so travel time between clients, overtime and minimum wage compliance need careful setup. The work includes new-hire paperwork, federal deposits, quarterly Form 941 filings, W-2s, mileage reimbursements under an accountable plan and labor reports by client or contract.

Travel time between clients

Under federal rules, time spent traveling between job sites during the workday is generally hours worked. The Department of Labor explains hours-worked principles. We set up payroll so drive time between homes or offices is captured and paid.

Minimum wage on per-job pay

Some companies pay cleaners per home. Per-job pay must still equal at least minimum wage for all hours worked, including travel. We check this every pay period.

Mileage reimbursement

Cleaners who use their own cars may be reimbursed for mileage. Under an accountable plan that requires substantiation, reimbursements are generally not wages; the rules are in Publication 15 and Publication 463.

Overtime

Non-exempt cleaners who work more than 40 hours in a workweek are owed overtime under the FLSA overtime rules, even if their hours are spread across several clients.

Filings

Deposits and Form 941 are reconciled quarterly, and payroll is posted to the books by client where hours are recorded that way.

Before we start

Cleaning crews often work at several client sites in one day, sometimes with travel between them. We review how time is recorded, whether travel time between sites is counted as hours worked, how supervisors are paid and whether any workers are treated as contractors. The Department of Labor's guidance on hours worked is the starting point for travel between job sites. We also confirm state unemployment and workers' compensation classifications, since cleaning work is often rated differently from office work.

Part-time and seasonal staff turnover is common, so we streamline onboarding with complete new hire paperwork and state new hire reporting for every employee.

Cleaning Services problems this addresses

  • Many small recurring invoices and card payments to reconcile
  • Cleaners travel between sites, which affects pay and cost
  • Classifying cleaners as employees or contractors is a common risk
  • Commercial contracts may be underpriced without anyone noticing
  • Supplies and equipment are bought in small, frequent purchases