What You Need to Know
How should payroll work in construction companies? This is something that we are asked a lot, and it is easy to see why! Payroll can be a tricky thing to keep on top of when you are running any business, but construction company owners have it especially tough.
From making sure that you meet all of your payroll CIS obligations to ensuring that you have the right software to handle everything, it can feel really overwhelming. That is where we come in!
Here is everything you need to know about payroll for construction companies.
Summary
• Construction payroll is more complex than most industries
• CIS obligations add extra responsibility
• Using a specialist payroll provider like us helps ensure compliance at every stage
• Outsourcing can also free up your time to focus on other aspects of your business
What Makes Construction Payroll Services Different?
Construction payroll is different to pretty much any other industry out there. This is because you are going to take into account different types of workers, such as direct employees and agency staff, along with fluctuating schedules and overtime. Then you have to factor in things like job-cost tracking for individual projects, and that’s before we get on to the one thing that makes employers exhausted: CIS requirements.
If you want to understand this in more detail, take a look at our guide on Why Construction Accounting Is Different to Regular Accounting, where we break down exactly why specialist support is so important.
Construction businesses operate very differently to standard companies, with project-based accounting, staged payments and more complex compliance requirements.
Accurate job costing plays a key role in keeping construction projects profitable. If you want to understand how this works in practice, take a look at our guide on How Job Costing Helps Construction Businesses Stay Profitable, where we explain how tracking costs properly can improve financial control and decision-making.
CIS Payroll
When you are a contractor in the construction industry, you and you alone are responsible for ensuring that you are registered for CIS. As part of your CIS payroll obligations, you will have to deduct a percentage of the gross payment to the subcontractor and pay that amount to HMRC. It’s really important to remember that this does not apply to employed workers who pay tax and NIC at source under PAYE. This, understandably, can lead to confusion, and that in turn can lead to costly mistakes!
What’s the Best Way to Manage CIS Payroll?
By working with a trusted CIS payroll company! We have years of experience when it comes to working with customers in the construction industry, and we will make sure that the right deductions are being made. We will also ensure that things like employee pension and NI contributions are taken care of, because your payroll obligations don’t begin and end with CIS.
We use specialist construction agency payroll software to make sure that there are no errors, and this, coupled with our great eye for detail and commitment to good old-fashioned customer service, has made us a firm favourite with construction companies all over the UK.
What Else Can a Construction Payroll Company Help With?
Like we just said, your payroll demands don’t just cover CIS. That is why we provide a complete construction payroll service, covering the following:
- Taking into account multiple pay rates, job roles, bonuses and overtime across projects. We know that a construction firm can have several ongoing projects at once, all with their own unique payroll demands.
- Providing regular reports that give you the oversight you need to stay on budget and ensure that your cash flow remains steady.
- Automating tasks wherever we can so that you can focus your time and energy on the aspects of your role that matter.
- No matter if they are an employee or subcontractor, we will make sure that they are paid accurately and on time.
We tailor our approach to suit the needs of your business, always mindful of the fact that things can change quickly in construction. By outsourcing your payroll needs to us, you can keep any delays, disputes and inaccuracies to a minimum. This will ensure that your workers are satisfied, which will reduce the rate of staff turnover and allow you to ensure projects are completed on time.
Talk to Us
Want to find out more about how to manage CIS payroll in construction? Or maybe you just want to see if we are a good fit for you. Whatever you want to talk to us about, we are all ears. So get in touch today!
