The Best March Action Plan for Contractor Construction Reporting

When you think of a busy to-do list for construction reporting, you might immediately envision year-end. But March is no slouch either. There are several reporting demands that contractors and other businesses must comply with that can keep you on your toes.

They don’t apply to everyone, though. Read on to find out which ones your company may need to include as part of your periodic duties.

eBacon is an easy-to-use software platform to manage your time, HR, and payroll in one place. This gives you access to single-click certified reporting. GET A FREE DEMO OF eBACON TODAY.

OSHA Compliance and Construction Reporting

If you followed federal guidelines, your OSHA 300 and 300A forms are already completed and have been posted on a common wall at your company since February 1. But did you know that’s not your only responsibility? If your company is required to electronically submit to OSHA, the deadline to transmit the reports is March 2. A video detailing requirements, how to create an Injury Tracking Account, and how to submit can be very helpful. To learn whether your company falls under the March 2 electronic reporting period, visit the OSHA website and complete the guidance application.

Managing Payroll Taxes

If you’re a business owner, you probably already make regular semi-weekly payroll tax deposits to the Internal Revenue Service. While March 31 is the end of the payroll quarter, the first of four quarterly tax reconciliations due throughout the year should be returned to the IRS by April 30.

Form 941 is required to show a quarterly accounting of federal payroll taxes, Social Security, and Medicare.

State Unemployment Taxes

Individual states also often stipulate the return of a quarterly form for state payroll taxes and state unemployment taxes (SUTA). Follow up with your individual state’s department of revenue for instructions.

Federal Unemployment Taxes

While the actual Form 940 for federal unemployment taxes (FUTA) is only due annually, employers still need to pay FUTA taxes quarterly if they owe more than $500 during the calendar year.

FUTA and other payroll taxes, including any outstanding quarterly payments, are paid via electronic funds transfer, or EFTPS (https://www.eftps.gov/eftps/). When making a payment, you’re asked to earmark it toward regular payroll taxes, quarterly, or annual demands. Learn more about Tax Forms for Construction Businesses.

Ideally, your report numbers match your regular deposits. Directly after the last payroll run of the quarter, it’s important to consider the date when cutting any extra checks for hours missed, terminations, or other special circumstances to ensure payments – and taxes –  are made in the same quarter as hours whenever possible.

Independent Contractor Tax Responsibilities

Independent contractors who receive a 1099-NEC for work performed may already know they’re responsible for their payroll taxes. The company issuing a 1099 does not withhold from or pay taxes for an employee.

That doesn’t mean you’re off the hook.

In this case, you may be responsible for quarterly tax deposits to the IRS. The IRS typically requires independent contractors and sole proprietors to pay estimated quarterly taxes using Form 1040-ES, Estimated Tax for Individuals. This is done on a pay-as-you-go process to help avoid large tax bills at year-end.

Davis-Bacon and Fringe Benefit Considerations with Construction Reporting

If you are a prevailing wage contractor, there’s even more to consider. Restitution pay is a common occurrence with prevailing wage due to workers clocking into the wrong labor classification. It’s the difference between hourly wages and fringes previously paid versus the classification and rates that should have been paid according to the Davis-Bacon Wage Determination.

It’s important to consider the pay dates for restitution when you’re preparing quarterly reports as it’s easiest and cleanest for supplemental pay to fall into the same quarter as the original pay. This practice also helps with the reconciliation of certified payroll reports and should include documentation showing the circumstances that led to the restitution and revised certified payroll reports.

Take a Closer Look at Prevailing Wage Records

The U.S. Government recommends a deep examination – at least quarterly – of prevailing wage records. In the case of an investigation into prevailing wage discrepancies, they say one factor helping determine whether a contractor acted with intentional disregard for employee pay is “Whether the taxpayer undertook a quarterly, or more frequent, review of wages paid to mechanics and laborers to ensure that wages not less than the applicable prevailing wage rate were paid.”

Quarterly requirements for prevailing wage contractors also include payment of fringes to a bona fide fringe benefit plan. According to the Department of Labor, workers must be paid the prevailing wages due to them weekly, except contributions to bona fide fringe benefit plans that must be made no less often than quarterly.

Union Reporting and Dues

Like prevailing wage, labor unions often have their own specific reconciliation needs. In general, unions require monthly reporting. However, many require quarterly dues, leading to quarterly reporting. If any prevailing wage fringes are paid to a union chapter, they must be made at least quarterly as well.

Union requirements can vary by trade or union chapter, so it’s important to be familiar with your collective bargaining agreement and the reporting forms your union specifies.

Individual Obligations and Risk Mitigation

All contractors must understand specific reporting requirements for each month, quarter, and year to avoid late fees or fines. Establish a proactive approach by marking stipulations on your business calendar at the start of the year. Regularly revisit and verify for any changes to stay compliant.

FAQ: Clarifying Common Questions on Construction Reporting and Compliance

The material presented here is educational in nature and is not intended to be, nor should be relied upon, as legal or financial advice. Please consult with an attorney or financial professional for advice.