Arizona Transaction Privilege Tax (TPT): Arizona contractors are subject to the prime contracting classification of the TPT, which functions as a sales tax on construction activities. Proper bookkeeping tracks the taxable portion of each contract, materials purchased, and subcontractor deductions so TPT filings are accurate and defensible during audits.
1099 Reporting for Subcontractors: Contractors who pay subcontractors $600 or more annually must issue 1099-NEC forms. Our bookkeeping processes track every subcontractor payment by vendor and project throughout the year so 1099 preparation is accurate and on time.
Certified Payroll for Federal Projects: Tucson contractors working on federally funded projects, including military base construction at Davis-Monthan, must submit certified payroll reports under the Davis-Bacon Act. Our bookkeeping tracks wage rates, hours by project, and fringe benefit payments so certified payroll reports can be prepared accurately.
Mechanic's Lien Documentation: Protecting lien rights under Arizona's construction lien statutes requires accurate records of contract amounts, billings, payments received, and outstanding balances by project. Our bookkeeping maintains the project-level financial records that support lien filings and preliminary twenty-day notices when payment disputes arise.
Arizona Registrar of Contractors Compliance: Licensed contractors in Arizona must maintain financial records that support their license renewal and any investigations by the Registrar of Contractors. Our bookkeeping keeps your financial documentation organized and audit-ready for regulatory compliance.