Small businesses and accountants know that construction payroll accounting for 2023 differs in specific and significant ways from accounting across other industries. Construction business owners need to navigate time-tracking, unions, and multiple locations. Whether your business needs more support with prevailing wages or certified payroll, consider investing in construction payroll software. The right construction-specific program will provide reliable and efficient help not only during tax season but throughout the entire year.
We designed Advanced Micro Solutions’ complete database system with multiple industries in mind. Our AMS Payroll add-on module includes features like certified payroll and other federal payroll forms for small construction businesses. Download our free 1099-etc Demo software to enter your business’s real data and see how our system operates using any of our modules.
What is Part of Construction Payroll Accounting 2023?
The construction industry can give businesses unique and challenging payroll obstacles. The following aspects make investing in software smart when you manage payroll accounting for construction businesses.
Union Payroll and Reporting – Review the reporting requirements for specific unions on the national or local level. Multi-union payroll may cause complications if you do not appropriately split fringe and deductions to the correct local union. Track and report wage and fringe benefits to the corresponding union.
Certified Payroll and Prevailing Wage – Pay the standard compensation rate for each worker classification based on similar jobs in your business’s area. The best construction software has reports that users can use to streamline how they fill out forms for each worker. Make sure your software for construction payroll accounting for 2023 tax season offers certified payroll reports that correspond with your state or specific agency.
Compliance Reporting – You may encounter payroll reporting requirements even if you do not file certified payroll for your employees. Look for a comprehensive program that includes useful features, such as union reports, workers’ compensation, equal employment opportunity minority compliance, or new hire reporting. Familiarize yourself with what your jurisdiction expects you to file from the federal level on down to the local level.
Multiple Rates, States, and Localities – Take into account that a business might hire workers who require multiple rates for any number of reasons. Do the workers work on job sites in more than one city or state? Speak to a payroll vendor to confirm that your software for construction payroll accounting will keep you compliant in multiple regions with all tax withholdings in 2023 and beyond.
Questions to Ask Before Running Construction Payroll
Starting a new business or improving your business’s payroll shortcomings requires you to think in the short and long term. Ask yourself the following questions to ensure that you optimize your software to meet all of your small business needs.
What is your company’s pay schedule? Different states have specific payday expectations and requirements. Check whether your business’s state of operation requires weekly, monthly, or semi-monthly pay schedules.
How will you pay your employees and non-employees? Determine whether you want to pay your workers by direct deposit, physical check, or an alternate method. Any 2023 construction payroll accounting software should give you a variety of payment distribution options.
Did you collect all of your workers’ required forms? Collect your employees’ W-4 forms and any other documentation that you may need of a specific workers’ personal tax information. Use a digitized system for your payroll accounting to reduce the risk of misplacing or destroying your forms that you need to hold onto for a certain amount of time.
How will your workers track and submit their times? Use a tracking system that steers clear of paper-based programs. Eliminate paper recording to minimize the risk of making avoidable mistakes as you enter your employees’ time-tracking data.
Why Construction Companies Use AMS
Our complete modular accounting suite of tools processes “live” or after-the-fact payroll in all 50 states, plus the District of Columbia and Puerto Rico. Utilize our construction payroll accounting software for 2023 to support up to 1,999 payers and up to 9,999 employees per payer. We include and regularly update state and federal tax tables. Users can automatically calculate all federal, state, and local payroll taxes. Record your business’s disbursements and state and federal tax deposit information as well.
We offer five other optional add-on modules to pair with AMS Payroll. The modules are: Forms Filer Plus, E-File, Software Generated Forms, Affordable Care Act Filer, and 1042-S Filer. Use our system to import data from QuickBooks, PeachTree, Excel, or Tab Delimited Text files. The system also provides exporting compatibility with Tab‑Delimited Text File and/or QuickBooks General Journal.