In short
Construction payroll means crews whose hours are split across several jobs each week, sometimes in different states, plus overtime, per diems and equipment operators on different rates. Payroll is run from job-coded timesheets so wages and employer taxes land in job costs, and workers are reviewed for employee versus subcontractor status, which is a frequent problem area in the trades.
On a construction crew, one worker might spend Monday on a remodel, Tuesday on a new build and Wednesday in the shop. Payroll for contractors has to pay people correctly and also feed accurate labour cost into each job.
Timesheets coded to jobs
Payroll starts with timesheets that record hours by job, and where useful by cost code. We review them for missing days, overtime and jobs that do not exist in the books, then run payroll and post wages and employer taxes to each job. Labour is often the largest variable cost on a project, so this is what makes job costing reliable.
Employees or subcontractors?
Worker classification is a common issue in the trades. Someone who works your hours, with your tools, under your supervision, may be an employee even if they call themselves a subcontractor. The IRS sets out the factors in its guidance on independent contractors versus employees. We help you document each relationship and recommend professional advice where the answer is unclear.
Crews across state lines
When crews work in another state, withholding and registration rules there may apply. We track where employees work and when, so you can review obligations before payroll goes out. Our state guides link to official agencies.
Deposits and returns
Withheld income tax and Social Security and Medicare taxes must be deposited on the schedule the IRS assigns. The IRS explains this in depositing and reporting employment taxes. We keep deposit confirmations with each pay run and reconcile quarterly returns to the payroll register.
What we look after
- Pay runs from job-coded timesheets
- Labour cost posted to jobs
- Worker classification documentation
- Multi-state work tracking
- Employer tax deposits and returns
Read about our payroll services, our approach to construction businesses, or book a consultation.