Overtime is one of the costliest labor expenses a business can have. Overtime hours, mandated by the Fair Labor Standards Act (FLSA) to be paid at a rate of at least one and a half times an employee’s regular rate of pay, can quickly add up. Furthermore, failing to be accurate when it comes to tracking overtime hours leaves you legally liable, since the FLSA requires employers to maintain accurate records of all employee time worked and wages paid.

Construction companies have one of the most difficult payroll processes of any industry. There are a lot of moving parts that open you up to accidentally calculating employee wages inaccurately, failing to remain tax compliant, and winding up legally liable. In this post, we’re going to walk you through how to do payroll for a construction company, breaking down all the necessary steps to follow to ensure you’re compliant with state, local, and federal laws.

The importance of how you handle employee paychecks goes beyond the amount you pay them. Frequency of payment, accuracy of compensation, and thorough deductions are critical for managing employee satisfaction and ensuring your business complies with local, state, and federal laws. This guide will walk you through all the necessary steps to calculate payroll accurately and effectively for your employees, including categorizing them, applying necessary deductions, and determining pay periods and timing.