Bookkeeping, payroll tax and sales tax for construction contractors
A contractor’s books have to track money by job, pay crews and subcontractors correctly, and stay current enough to bill on time. RazaPro keeps the monthly bookkeeping, payroll tax calculation and sales tax work for construction, restoration, painting and trade companies up to date, so the owner sees where cash stands without chasing paperwork.
What construction contractors have to get right
Money moves job by job
Deposits, progress payments and final payments arrive on different dates from the bills they cover. Books that only sort transactions by date hide which jobs make money. Jobs can be tracked with classes or customer-job names so each one can be reviewed.
Subcontractors are not employees
Subcontractors are usually paid as independent contractors and reported on Form 1099-NEC. That needs a W-9 on file, payments coded correctly all year, and a clean list at year-end. The IRS test for contractor or employee depends on the facts of the relationship, so the classification stays with the owner and their CPA.
Materials land on the wrong job
Supply-house purchases, fuel, tools and small equipment are split across crews. Receipts that are not matched to a job at month-end are hard to place a quarter later.
Payroll swings with the season
Crew hours rise and fall. Payroll tax deposits and quarterly returns still have fixed dates, so each payroll has to be calculated on time even in a slow month.
What RazaPro does for construction contractors
- Bank and credit card transactions entered and reconciled to the statements every month
- Costs coded to the right job or class where the client tracks jobs
- Subcontractor payments tracked, with W-9 and 1099 totals ready at year-end
- Payroll and payroll tax calculated monthly or quarterly for office staff and crews
- Sales tax calculated each quarter where the state requires it, handed over ready to file
- Monthly profit and loss and balance sheet with a short list of open questions for the owner
What it costs
Bookkeeping plus payroll tax ($130–$140 a month), with sales tax added where the state requires it ($150–$170 for all three).
Bookkeeping is priced by transactions: $75 a month up to 150 transactions, $100 up to 300 and $120 up to 500. Catch-up work, extra states and larger payrolls are quoted before any work starts.See all plans and the estimator.
Software: QuickBooks Desktop, including a shared file on a virtual machine, and QuickBooks Online.
Sales tax
Sales tax on construction varies a great deal by state. In some states a contractor pays tax on materials and does not charge it to the customer; in others the contractor collects tax on certain work. RazaPro calculates and prepares what the client’s state requires once the client’s CPA confirms the rule that applies.
Payroll and payroll tax
Crews of three to five employees are the standard scope: payroll calculated each pay period, payroll tax deposits and Forms 941 and 940 prepared, and state unemployment returns tracked. Workers’ compensation premiums are recorded as an expense but not audited.
Not included in the standard scope
- Detailed job costing and work-in-progress schedules (quoted separately)
- Certified payroll reports for public-works jobs (quoted separately)
- Contractor-versus-employee classification decisions (owner and CPA)
- Bid estimating, lien filings and insurance audits
RazaPro does not prepare or file income tax returns or give tax advice. Tax decisions and signatures stay with the business and its CPA.
Work our team has done in this industry
Our team has handled this monthly routine for a US accounting firm’s clients, including a gym, a restaurant and a construction company.Client names are not published, and results vary by client.Read the anonymous case studies.
Frequently asked questions
How much does bookkeeping cost for a construction company?
For a small contractor, bookkeeping is $75 to $120 a month depending on transactions (up to 150, 300 or 500 a month). Adding payroll tax is $130 to $140, and the complete plan with sales tax is $150 to $170. Detailed job costing and certified payroll are quoted separately.
Do you track subcontractor payments and 1099s?
Yes. Payments to subcontractors are coded all year and the 1099 totals are ready at year-end. The 1099 filing itself and the contractor-or-employee decision stay with the owner and their CPA.
Can you work in QuickBooks Desktop?
Yes. The team works in QuickBooks Desktop, including a shared company file on a virtual machine used from several computers, as well as QuickBooks Online.
Can you track each job separately?
Costs and income can be coded to jobs or classes so each job can be reviewed. Full job costing with work-in-progress reporting is outside the standard scope and is quoted before work starts.
Does a construction company need sales tax filings?
It depends on the state and the type of work. Some states tax materials the contractor buys, others require the contractor to collect tax on certain jobs. Your CPA confirms the rule; RazaPro prepares the returns.
Accounting firm with construction contractors as clients?
RazaPro does this work under your firm’s name at wholesale prices from $40 to $70 per client a month, with a free 30-day pilot on up to 3 clients.See the firm program.
Serving businesses across the US
RazaPro supports businesses in every state. State guides with local tax detail:Texas, Georgia, Colorado, New York, New Jersey, Florida, California, Illinois. Other industries:Real Estate & Property, Agencies & Professional Services, Wholesale & Trading.All industries.
Talk through your construction contractors books
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