5 Questions To Ask Before Buying Contractor Payroll Software

contractor payroll software1. Does the system include an integrated Job Costing module? Your construction accounting software should allow you to assign your labor and employer burden (FICA, FUTA, SUTA, workers’ compensation, etc.) costs to your jobs. You should also be able to easily allocate overhead –(i.e. health insurance you provide, vacation time, etc.) to your jobs. 2. Can the system handle different jobs in different localities? – Do you have employees who work on a number of jobs in different states and localities? Make sure your new system will be able to handle the necessary trade classifications, pay rates, rates and deductions from a single timecard. Also, make sure you will have the ability to assign an employee’s time to multiple jobs and phases as needed.

3. Do I need Certified Payroll Reports? - The inability to produce certified payroll reports, is one of the main reasons we see contractors moving from a generic accounting solution to a contractor specific accounting package. Not being able to produce the required reports can prevent you from competing for government funded projects. There are many things to consider when selecting a system that supports certified payroll – feel free to give us a call with any questions you may have.

4. Is Direct deposit supported? Direct deposit is a “must have” feature these days; however, not all contractor payroll software packages have this feature built in. Be sure to ask is your system supports Automated Clearing House (ACH) direct deposit capabilities and whether or not this is an add-on module requiring extra cost to purchase, configure, and support.

5. How does the system handle Direct vs. Indirect Payroll Costs? – Most construction companies have employee who not only work at the job site(s), but also spend part of their day in the office. Make sure your accounting construction payroll system can handle recording payroll related direct costs, indirect costs (i.e. shop time) and office labor costs without having to implement “system workarounds”.

Selecting the right construction payroll accounting system may seem like a daunting task but it is important to do your homework. If you have any questions or need help defining the requirements for your business, feel free to give us a call at (800) 209 – 6927.