Good To Know

The Benefits of Outsourcing Payroll Services for Construction Companies


Evaluating different providers is important if you manage a construction company’s payroll. Look for a provider with the needed features, such as certified payroll reports, union tracking and prevailing wage work.

A provider with experience in the industry can also offer more detailed reporting that allows you to track labor hours and costs by project. This can help you better project per-project profitability and compliance.

Reduced Costs

Processing payroll is a big expense for any business and can be even more costly for construction companies because of unique challenges. These include tracking field employees across multiple locations and cities, paying prevailing wages for different country areas, and dealing with fluctuating pay rates and union issues. These demands often require payroll services with a great deal of experience in the industry.

Choosing the best payroll service for construction can significantly reduce costs. A quality provider will offer a transparent, clear and concise contract outlining all upfront reoccurring fees for the specific services you need. It should also allow for flexibility in the future, allowing you to add features or products as your needs change.

It’s important to research potential providers thoroughly and carefully, ensuring they are well-suited to handle your industry’s complexities. Ensure they can deliver your company’s must-have services, including certified payroll reports (to comply with federally-funded prevailing wage projects) and state and city-specialized reporting requirements. Make sure they have a high compliance rate and can handle any problems or errors that may arise. You don’t want to be saddled with fines because of mistakes or data breaches. Companies sometimes co-source payroll responsibilities, keeping certain tasks in-house while outsourcing others.

Better Compliance

Managing payroll can be time-consuming and expensive for a business. In addition to paying employees, a company must comply with local and federal laws, including minimum wage and overtime requirements. In addition, some other taxes and deductions must be tracked, such as health care and Social Security. When these tasks are outsourced, compliance and financial costs decrease.

Payroll services can handle everything from issuing checks or processing direct deposits to tracking tax liability and completing quarterly and year-end government reporting. In addition to the normal payroll processes, the construction industry has unique requirements such as certified payroll reports (required for all federally-funded prevailing wage jobs) and union reporting. When selecting a payroll service provider, it is important to consider whether they are familiar with these unique requirements and can provide timely, accurate service.

A good payroll service should have a low turnover and be able to provide consistent support to clients. This will help alleviate the frustration of waiting for a response or getting bounced around between representatives. This also helps to reduce the risk of data loss or breach due to staff departures. With the right partner, you can rely on your payroll provider to ensure all deadlines and reporting requirements are handled accurately and efficiently.

Increased Efficiency

Outsourcing your payroll enables you to save time and money while reducing stress on your staff. It’s also a smart move for construction companies that often have to manage multiple projects simultaneously. This allows managers and support staff to zero in on other business matters that can help increase revenue, like negotiating discounts with vendors or chasing leads for the sales team.

When you choose a payroll services provider built for the construction industry, they can simplify your day-to-day operations and improve accuracy. This is because they understand the complexities of tracking unions, certified payroll, and other labor laws unique to your industry. Many normal payroll service firms need to be equipped to handle these nuances.

This helps reduce mistakes that can cost you more than a few hundred dollars in fines and penalties.

Furthermore, a reputable payroll service can help with complex reporting requirements, such as new hire reporting and workers’ compensation classification. These reports are crucial for maintaining compliance but can only prepare with the right tools and software programs. A payroll services company can take the pressure off your staff and ensure all required documents are submitted on time to keep you in good standing with the government.

More Time to Focus on Your Business

While reducing costs and improving efficiency are the main benefits of outsourcing payroll services, it also frees up time to focus on other tasks. Managing in-house payroll can be a significant drain on resources and a distraction from day-to-day business operations.

A well-trained and experienced payroll provider can handle all aspects of your company’s processing, giving you more time to dedicate to other important tasks. This could include re-examining your company’s workflows, streamlining operations and looking at ways to boost profits.

Payroll is complex, and ensuring compliance with federal, state and local laws can be challenging. Partnering with an experienced payroll service that specializes in the construction industry can provide peace of mind that your payroll is being handled correctly. Choose a provider that understands the industry’s unique requirements and can offer specific reporting such as job costing, estimate versus actual costs, worker’s comp, union reports and custom reporting.

Delegating your payroll to a third party can be a big step for any business. It’s critical to take your time when selecting a provider that will meet all of your needs, and make sure the contract is clear on upfront and reoccurring subscription fees as well as additional charges for services such as paper checks or payroll tax filings. Then you can rest assured that your company’s most valuable asset, its employees, is being paid accurately and on time.


Samantha hails from Virginia and is a proud wife to a retired Deputy Sheriff and mother to two amazing little boys named Jack & William. A veteran product reviewer; Samantha has been reviewing products for 12 years and offers high quality product reviews with original photography.

Samantha hails from Virginia and is a proud wife to a retired Deputy Sheriff and mother to two amazing little boys named Jack & William. A veteran product reviewer; Samantha has been reviewing products for 12 years and offers high quality product reviews with original photography.

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