Despite modern bookkeeping software and other tools, many construction companies remain bogged down by accounting functions. This has a lot to do with the nature of the industry, in which contractors have to juggle projects, sites and subcontractors. Of all accounting functions, payroll often wastes the most time. It creates headaches for all businesses, which must account for federal and state taxes, FICA, Medicare and state unemployment deductions as well as 401K plans, vacation pay, health insurance and garnishments. For construction firms, reports and payments of union deductions and fringe benefits add to the process. Contractors can handle payroll internally