How to Prepare for 2023 Construction Payroll Taxes

Small businesses navigating 2023 construction payroll taxes should find reliable and trustworthy software that meets their individual business’s needs. Construction payroll needs will differ from other specific industry requirements and ideal tools. Look for your first or next payroll software to do more than record and export data while meeting the current year’s tax needs. Search for the best system that enables you to anticipate future payroll and tax filing requirements without you sacrificing the usability or efficiency that all businesses rely on during tax seasons.

Advanced Micro Solutions processes “live” and after-the-fact payroll with its AMS Payroll add-on module. Build out from our base W-2/1099 Forms Filer software today, or in the future, with any or all of our six optional add-on modules. Explore module video tutorials or download 1099-etc Demo software to gain a better understanding of how we help small businesses manage 2023 construction payroll taxes.

 

How is Construction Payroll Different from Other Industries?

Construction business owners often manage workers and payroll in multiple locations. Consider the finer details of the features that you should look for in construction payroll software.

Geolocation – Job sites in different counties or states have different tax requirements. Find construction payroll software that lets you manage all payroll taxes in any of your regions.

Time Tracking – Avoid mixing paper and digital time-tracking methods. Reduce the time spent on these duties when you eliminate the process of moving data from one system to another or trying to translate handwriting. You may want to hire an in-house bookkeeper to manage all of the data you need for 2023 construction payroll taxes.

Certified Payroll – Make sure the software that you use includes a certified payroll report option. The report allows your business to file information on taxes and deductions, fringe benefits, and each employee’s wages.

Prevailing Wage – Check to confirm whether prevailing wage applies to your small business. Take down the employee’s prevailing wage as you run payroll. Include employee fringe benefits that will arrive at a fully burned rate.

 

Payroll Tax Mistakes to Avoid with Construction Software

Optimize your construction payroll management process when you identify some common, yet avoidable payroll errors.

Manual Time Tracking – Avoid duplicating your work by using software when you file 2023 construction payroll taxes. Time tracking requires you to keep an accurate count of all of the employees’ working hours. Use construction software to improve company efficiency and to reduce the likelihood of errors. Mistakes can occur from something as simple as one of your employees texting you their hours or writing it on a piece of paper.

Lack of Organization – Create checklists for your construction payroll management. Useful things to include are: Verified employee information, calculated gross pay, and fully deducted withholding, benefits, and taxes. Making these lists helps to better guarantee that you or your in-house payroll specialist does not miss a step or a filing deadline.

Poor Integration – Look for an accounting system that allows you to integrate payroll with any other tools that you require for 2023 construction payroll taxes. Check your construction payroll software to see whether you can integrate forms filing and payroll reporting with software form generation and e-filing.

Employee Misclassification – Construction companies hire many types of contracted workers, plus part- and full-time employees. Make sure that you understand whether you should classify your employees as exempt or non-exempt.

Missing or Incorrect Forms – Take immediate action if you realize that you filed an incorrect form or missed an important payroll tax deadline. Time tracking and payroll software minimize inaccurate tax information on your construction payroll reports. You should still review all your numbers and stay up-to-date with your county and state’s tax laws.

 

Why Use AMS Payroll for 2023 Construction Payroll Taxes?

Our payroll software offers easy payer and employee setup for all 50 states, plus the District of Columbia and Puerto Rico. Construction business owners can automatically calculate federal, state, and local payroll taxes. Reference the state and federal tax tables that our AMS software includes and updates as needed.

Our system operates as a modular accounting suite of tools. Consider which tools best suit your duties and customize your individual program with them. We include up to 40 user-defined fields for deductions or additions, such as 401K or health insurance. Our software also supports many types of federal payroll forms and includes a certified payroll report. Explore the ways that you can access these forms and file them electronically with our fully integrated system.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.