Running a jobsite requires a lot of tools. Some tools are easy to spot and familiar to use, like electrical equipment, scaffolds and power tools. Others can be slightly more foreign, such as invoicing, billing and payroll – but are just as important to maintaining a productive project.
As a business owner, you have an extensive amount of responsibilities, including the time-consuming task of payroll. Payroll affects so many areas of your business, from financial stability to jobsite morale. On one side, you have employees whose work ethics are directly tied to that paycheck. On the other side, you have federal regulations that make sure everyone is paid fairly for hours worked, and the IRS-issued tax requirements that business owners must adhere to. How do you balance the responsibilities of making sure the regulations are followed and your employees are happy?
Your Responsibilities with Payroll
As an employer, payroll is one of your highest priorities. The process can not only be time consuming, occurring once to four times every month, but also complex. When completing payroll, you have to make sure you:
- Withhold federal taxes, such as Medicare and Social Security, from employees’ wages.
- Pay your own Medicare, Social Security and Unemployment taxes.
- Comply with hour and wage laws.
- Submit summaries at the state level.
- Pay employees accurately and on time.
- Handle employees’ health and benefits plans.
- Report on disability, family leave and unemployment.
- Keep accurate records to ensure compatibility with IRS records during tax time.
Compliance with Laws
With all these complicated rules and regulations, many businesses – from small start-ups to Fortune 500s – hire their own payroll professionals. While small construction firms may think that it’s easier to do payroll on their own, if you make a mistake, you could end up owing the IRS big. Understanding the laws and staying compliant with regulations can be overwhelming and confusing. The major IRS regulations for payroll include:
- Federal Income Tax
- Social Security and Medicare Tax
- Federal Unemployment
- Self Employment Tax
- Employer Payroll Taxes
There are also taxes laws at the state level that must be followed, as well. Each state is a bit different. For example, Alaska, Florida and Nevada, along with a few others, do not have a state income tax.
Payroll and its Effect on Employee Morale
Have you ever noticed how on payday the laughter and camaraderie on the job site seems more boisterous? Payday excites your skilled laborers and workers, both temporary and permanent, especially when it falls on a Friday. They have worked hard all week and are looking forward to a little downtime with some extra money.
Any payroll mistakes you make not only burst this bubble, but could also drop your employees into a financial hole, making them late on bills. They tie their value to their wages and if you aren’t paying them correctly, they won’t see much value in their work.
Need Help with Payroll?
If you’re spending too much time on payroll and not enough time working with new clients, consider partnering with a firm that provides temporary or permanent payroll help. At CCS Construction Staffing, we have a talent pool filled with qualified candidates who can take this burden off your plate. Give us a call today and we’ll help you find the best candidates for all your staffing needs.