CONSTRUCTION payroll services for contractors
Construction Payroll That Works With Your Bookkeeping
Payroll affects more than employee paychecks. For contractors, payroll also impacts monthly draws and job costing, and workers’ compensation.
Excel Consulting helps keep payroll records organized and coordinated with the rest of your accounting system.
WHY CONSTRUCTION PAYROLL IS DIFFERENT
Payroll Is More Than Cutting a Paycheck
Construction payroll touches several parts of the accounting system at once. Employee wages need to be recorded correctly, payroll taxes and liabilities need to be tracked, labor may need to be assigned to individual jobs, and workers’ compensation classifications can affect both payroll reporting and insurance audits.
When payroll is not coordinated with the bookkeeping, the problems tend to show up elsewhere—in inaccurate job costs, incorrect liabilities, messy financial statements or surprises at year-end.
Construction Payroll May Affect:
- Job costing and labor allocation
- Payroll tax liabilities
- Workers’ compensation classifications
- Employee deductions and reimbursements
- Payroll reporting
- Financial statement accuracy
- Year-end payroll records
Payroll should fit into your accounting system—not sit beside it as a completely separate set of numbers.
PAYROLL + JOB COSTING
Labor Costs Need to Land on the Right Jobs
Payroll can be processed perfectly and still produce lousy job-cost information if employee labor is not assigned consistently to the projects where the work occurred.
For contractors, payroll information can become part of the job-costing process. When employee time and labor costs are connected to the correct projects, you get a more accurate picture of what the work actually cost—and whether the original labor estimate held up.
1. Track Employee Time
Employee hours need to be recorded accurately and, when appropriate, associated with the projects where the work was performed.
2. Record the True Labor Cost
Wages are only part of the cost of labor. Payroll taxes, workers’ compensation and other employer-related costs can also affect what an employee actually costs the business.
3. Improve Job-Cost Reporting
When labor is assigned consistently, project reports can provide a clearer comparison between estimated labor and what the job actually required.
Accurate payroll tells you what employees were paid. Good job costing helps you understand what that labor cost the project.
QUICKBOOKS PAYROLL SUPPORT
Payroll Works Better When It’s Connected to the Books
QuickBooks Payroll can be a good fit for contractors who want payroll, payroll taxes and accounting information working within the same system. When payroll is coordinated with the bookkeeping, employee wages, employer taxes and job-related labor costs are easier to review alongside the rest of the financial records.
Excel Consulting can help with QuickBooks Payroll setup, ongoing payroll processing and coordination with the accounting workflow so payroll activity is reflected accurately in QuickBooks.
QuickBooks Payroll Support May Include:
- Payroll setup and employee onboarding
- Regular payroll processing
- Payroll expense classification
- Labor allocation for job costing
- Payroll tax and liability payments and filings
- Year-end payroll filings; W2’s, 941 and 940
QuickBooks Payroll Certified
Excel Consulting is QuickBooks Payroll Certified and can help contractors keep payroll coordinated with the rest of their accounting system.
Payroll shouldn’t create another set of numbers you have to reconcile later.
PAYROLL + WORKERS’ COMPENSATION
Payroll Records Can Affect Your Workers’ Comp Audit
Workers’ compensation premiums are based in part on payroll and employee classifications, so payroll records and workers’ comp reporting need to tell the same story.
For contractors, that can become especially important when employees perform different types of work, payroll is allocated across jobs, or the business uses both employees and subcontractors. If payroll records, classifications and supporting documentation are inconsistent, those issues may surface during an insurance audit.
Excel Consulting can help keep payroll records organized and coordinate the accounting information needed for workers’ compensation reporting and audit preparation.
The time to find a payroll discrepancy is before the auditor does.
Learn About Workers’ Comp Audit Preparation →
Payroll Records May Affect:
- Employee payroll totals
- Workers’ compensation classifications
- Overtime reporting
- Job and labor allocation
- Audit payroll reports
- Reconciliation of payroll to financial statements
- Information provided during a workers’ comp audit
Payroll Shouldn’t Be Another Accounting Problem to Solve
If payroll is taking too much time, creating accounting problems or making your job-cost reports harder to trust, Excel Consulting can help bring payroll and bookkeeping into a more organized workflow.
Frequently Asked Questions
Do you actually process payroll, or just review it?
Yes. Excel Consulting can provide ongoing payroll processing, including employee setup, regular payroll runs, payroll tax and liability payments, and year-end payroll filings, depending on the agreed scope of services.
Can payroll costs be assigned to individual construction jobs?
Yes. When employee time and labor costs are tracked consistently, payroll information can support more accurate job costing and help compare estimated labor to actual project labor costs.
Do you work with QuickBooks Payroll?
Yes. Excel Consulting is QuickBooks Payroll Certified and can help contractors set up, process and coordinate payroll within QuickBooks so payroll activity is reflected accurately in the accounting records.
How does payroll affect workers’ compensation?
Workers’ compensation premiums are based partly on payroll and employee classifications. Accurate payroll records can help support workers’ comp reporting and provide more reliable information during an insurance audit.
Can payroll be included with ongoing bookkeeping services?
Yes. Payroll can be provided alongside monthly or quarterly bookkeeping so payroll activity, liabilities, job costs and financial reports are reviewed as part of the same accounting workflow.