Archive for the ‘General Contracting’ Category

Construction Companies: The Best Ways to Save with a PEO – Why you NEED a PEO

February 25th, 2015

PEO for Construction Companies Do you own your own construction company?  Perhaps you are looking to expand to accommodate business growth?  Are you looking to get yourself out of the office and onto the jobsites?  The construction industry is one that has a lot of regulatory red tape.  From human resources, to INS requirements to workman’s compensation, the nature of the business is not only highly administrative but requires support from people who are well versed across industry regulations.  Depending on the size of your company, having someone on full time to support the human resources and legal functions can be extremely expensive.    So how do you run your business, stay compliant and increase your bottom line?

You outsource.  Professional Employer Organizations have long been supporting the construction industry by taking on functions like payroll, human resources administration, OSHA compliance, health insurance and workman’s compensation.  In addition to those areas, PEOs also specialize in I-9 compliance – focusing on immigration and INS work requirements. Should there be violations, your PEO will address them and identify the steps required to solve the issues.

In addition to I-9 compliance, PEOs are also there to provide payroll support – from cutting checks to auditing pay methods to ensure compliance with the Fair Labor Act, PEOs have you covered.  Payroll administration also includes W -2 and W-3 summaries, maintaining records, handling withholding taxes, filing tax reports and monitoring tax laws.

Another area that can be a challenge for construction companies to handle is benefits administration.  By engaging a PEO, you can take this off your plate.  With the recent implementation of the ACA, benefits and insurance are more complex than ever.  A PEO will not only ensure that you are compliant but also will address any items like benefits assistance for low wage employees.

Workers Compensation.  The phrase generally sends shudders down the spine of any construction business owner.  Why?  It’s expensive, complicated and easily manipulated.  By bringing on a PEO to manage this area of your business, you can be assured that risk will be properly assessed, claims will be handled, audited, monitored and analyzed.   PEOs can also help implement drug free workplace policies and OSHA compliance training.

You must be thinking – how can a PEO do all of this and save me money?  PEOs are experts in our field – we know how to deliver the best services at the best prices for our customers. Most save on average 25% by outsourcing.  Interested in hearing how we can help you get back to focusing on your businesses, your jobs and your bottom line?  Contact us today for a consult!

 

3 Regulatory Areas Important to General Contractors

February 4th, 2013

Regulatory Areas That General Contractors Need To KnowIf you’re a small-sized general contracting company (or even a larger-sized company) responsible for the day-to-day oversight of building projects and employing many other contractors and vendors, there are a few regulatory changes on their way this year that you are going to want to pay attention to.

General contractors are often pressed for time moving from one project to another, and are used to relying on temporarily employed individuals to provide work when it’s needed. Although extremely important, employee management, compliance and human resources often get put on the backburner.

2013 presents itself with some areas you can’t ignore; if you do, you could find yourself in trouble with the IRS, Department of Labor, or the U.S. Immigration and Customs Enforcement (ICE), facing some hefty fines and compliance violations.

1.   Worker Misclassification: Worker misclassification has always been a bit of a gray area for business owners within the construction industry. It is estimated that in 2009 misclassification across all industries cost the government 2.7 billion in underpaid federal taxes, workers comp and unemployment insurance and it is estimated that up to 30% of companies may still be incorrectly classifying workers as independent contractors rather than employees.

The IRS and Department of Labor are working harder this year to correct misclassification amongst all industries. If your company is not in compliance, and select contractors should instead be classified as employees, you may face even harsher penalties than you would have in the past. Legislative reform may impose stricter compliance violation fines in the upcoming year.

2.   Underreporting: The IRS has invested heavily to identify underreporting employers and “find” all taxes owed to the government.  IRS examiners are looking for violations of compliance, and have powerful technological resources for triggering an audit.

3.   Immigration Reform: Immigration reform continues to remain a top priority for congress. What is your Company’s illegal immigration compliance strategy? Do you utilize E-Verify before hiring someone? Do you conduct background checks? Do you have a written policy for employment verification? Do you conduct your own additional audits of I-9 documents? Employee verification can be a timely task within itself.

Professional Employer Organizations specialize in the above 3 areas, and many are very familiar with the general contracting industry and the regulatory issues that business owners face.  If your PEO is not currently assisting your company with worker classification, reporting, and employee verifications, OR you do not currently work with a PEO and have questions about your company’s compliance, contact PEO Advantage today.