- Automated tax calculation for sales, payroll and federal
- Reminders on taxes and compliance filing
- Tax ready reports with P&L, expenses and balance sheets
- Instant access to top tax consultants for construction companies
- Proficient counsel on construction industry specific tax frameworks and tax-efficient strategies
- Minimizing tax liabilities and maximizing deductions
- Stay up to date on dynamic tax laws and regulations impacting the construction industry
Tax related FAQs for construction companies
How should I structure my construction business for tax purposes?
The most common structures for construction businesses are sole proprietorship, partnership, LLC, and corporation. Consult with a tax professional to determine the best structure that aligns with your financial goals and tax responsibilities.
What construction-related expenses can I deduct on my taxes?
You can deduct various expenses, including materials, labor, equipment, permits, insurance, and even vehicle expenses if used for business purposes. Keep detailed records to substantiate your deductions.
What is the depreciation schedule for construction equipment and buildings?
Equipment is typically depreciated over 5 to 7 years, while commercial buildings are depreciated over 39 years. You can also consider bonus depreciation and Section 179 deductions for immediate tax benefits.
Are there specific tax credits available for construction businesses?
Yes, there are tax credits like the Energy Efficient Commercial Building Deduction and the Work Opportunity Tax Credit that may apply. Check eligibility and requirements with your tax advisor.
How should I handle subcontractor payments for tax purposes?
If you pay subcontractors more than $600 during the year, you generally need to issue them a 1099-NEC form and report the payments to the IRS.
How should I handle sales tax for construction projects?
Sales tax rules vary by location. Ensure you're aware of the specific requirements in your area and collect and remit sales tax as necessary.
What is the estimated tax and how does it apply to construction businesses?
Estimated tax is a way to prepay income and self-employment taxes. Construction businesses may need to make quarterly estimated tax payments based on their expected annual income.
Making payroll painless for construction companies
Our comprehensive payroll features help make payroll management super simple.
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Off Cycle payroll and flexible payment schedules
Next day direct deposit
Payroll Deductions and Garnishments
Overtime and reimbursement calculations
Payroll and taxes across multiple states
Payroll for FTEs, contractors and freelancers
Payroll taxes and compliance
We take care of taxes and compliance to adhere to the local regulations and government declarations.
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Automated tax calculation
Tax filing and reporting
Tax codes and regulation updates
Multi jurisdiction compliance
Tax liability tracking
Work Classification Compliance
Wage Garnishments and Deductions