Going from being a construction contractor yourself to owning your own contractor business is a wise move. Your business is now scalable which means that as demand for your services grows, you can continue to hire more contractors to work for you and watch your revenue grow steadily in turn. While this is a positive development, it also comes with a lot of new responsibilities, like managing payroll. Here are three payroll tips for your contractor business:
Sign Up for Contractor Funding
Contractor funding is a loan (or sometimes a line of credit) designed specifically for contractors and construction business owners. Having contractor funding in place will give you peace of mind as your business expands. During times when you are waiting to be paid for construction projects, you will be able to access your contractor funding in order to pay your team on time.
You can even set things up so that your payroll automatically withdraws from your contractor funding account instead of your bank account. Contractor funding can also be used for other business needs, such as tools and supplies.
Implement Payroll Software
As your business grows, payroll software is really a necessity. Payroll software ensures that your contractors are paid automatically via direct deposit to eliminate wait times and delays. It also keeps meticulous records so that when it's time to pay taxes or report your workers' comp deductions, or if you are ever audited by the IRS, you can easily show that your payroll processing has been compliant. Payroll software automatically manages social security and payroll taxes for you, so that you don't have to deal with the headache of constant calculations.
Your team will be glad to be paid reliably on time and you will have more peace of mind. Payroll software can be easily linked to your contractor funding account as well.
Automate Your Payroll Reports
Many construction contracting businesses are required to submit weekly payroll reports to the government. Your accountant can tell you if this applies to you. If it does, you are required to submit Form WH-347, which is specific to contractors. When shopping for payroll software, look for an add-on feature that automates this for you. This way you can ensure your reporting is done accurately and on time, without having to spend all of your time manually creating these reports.
Owning your own construction contractor business is a large responsibility, but hopefully, these payroll tips will make your processes much more streamlined and easier.Share
28 January 2019
I grew up on a small cattle ranch in the southern United States. My dad has been a cowboy all of my life. He spends most of his time outdoors. For years, he didn’t have anywhere to store his equipment such as hay string, troughs, and other items. One spring, my family members decided to give dad something special, a outdoor shed of his own. Now, he has a place to neatly store all of his ranch related articles. If you’re searching for the perfect Father’s Day gift this year, consider surprising your dad with an outdoor shed. On this blog, you will discover how to work with a general contractor to build your father the shed of his dreams.