Changes in federal and state regulations will impact payroll compliance and workforce management across the industry. To stay ahead, it’s essential to review updates, adjust practices, and ensure your team is ready. Here’s what construction managers, payroll managers, and office admins need to know. However, accurate time tracking and payroll reports will provide crucial pieces of insight that you can use to improve your labor efficiency. This is where your payroll system and job costing system can work together.

Features and Benefits of Construction Payroll Software and Services

Add in working on multiple job sites, union requirements, prevailing wages, and inaccurate time sheets, and it’s enough to make anyone’s head spin. On top of that, you must have a system in place that can capture, organize, and report on tracked time so you can actually use it for things like payroll, job costing, and scheduling. Many government-funded construction projects require certified payroll reporting, which requires detailed documentation of employee wages and benefits. A payroll provider that can generate certified payroll reports can save you valuable time and ensure compliance with government regulations. Construction payroll has several unique challenges that must be addressed by a payroll service provider. For example, crew members may work at multiple sites, and their pay rates can vary depending on the location and type of work they’re performing.

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QuickBooks Payroll will automatically calculate your payroll every month, ensuring on-time payments. We gave the most points to software that offers multiple payment options, such as pay cards, direct deposits, and manual paychecks. Aside from year-end tax reporting, we also looked for payroll tax online bookkeeping services that cover all levels (state, local, and federal). It earned an overall score of 4.18 out of 5 in our evaluation, with high marks (4 and up) in HR and payroll features, reporting, and user popularity.

How We Score Software

Its improved compliance features also help you avoid the pitfalls of prevailing pay rules. For region-specific guidance, check out our overview of Mississippi labor laws. There are thousands of online user reviews for various ADP Payroll products. It has a good score and thousands of ratings on Capterra for its payroll products.

• Additionally, some employees may forget to track their time, meaning you’ll have to go back and verify their time and make the necessary adjustments.
• Use this information to better allocate your crew for tasks that you know will require extra hands or tasks that a limited crew can complete.
• QuickBooks Payroll has consistently earned good scores on three review platforms.
• A good payroll service will be able to generate these reports for you automatically, saving you time and reducing the risk of errors.
• A payroll software or service can help you save time, reduce errors, boost security and stay compliant.

While it has union payroll codes you can use, it requires a Points North integration for certified payroll reporting (eBacon and Payroll4Construction simply provide this natively). The setup fee and lack of a contractor plan (something Gusto and QuickBooks Payroll offer) also pulled its overall score down. From consistent labor shortages to inflation to supply chain disruptions, construction companies are no strangers to challenges. Though businesses in every industry struggle with payroll intricacies, those in the construction industry are subject to unique challenges that take it to the next level.

Time Tracking

This created a problem as local workers and employers felt they were getting priced out because of the cheaper labor supplied by out-of-state workers. To payroll for construction companies combat this, Davis-Beacon mandated the creation of prevailing wages–the hourly rate (wages + benefits) paid to similarly employed workers in a certain location. Under the National Labor Relations Act of 1935, all workers covered by collective-bargaining agreements receive the full benefits of those agreements, whether they are union members or not.

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• Paychex Flex is a cloud-based payroll and HR solution that can handle certified payroll reporting, timekeeping, and benefits administration.
• In this article, we’ll explore the top payroll services for construction and what to look for in a payroll provider.
• State legislatures have the agency to determine the prevailing wage for each occupation.
• It also integrates with leading business and financial tools as well as accounting software.
• As a bonus, not having to calculate overtime hours and pay — in addition to regular and variable time and pay — will save you a lot of time when manually running payroll.
• Sage 100 Contractor is a comprehensive accounting and project management system designed for construction businesses.

For example, trade unions may stipulate specific benefit packages, pensions, annuity funds, or additional contributions that employers must provide per the collective-bargaining agreement. It’s not uncommon to have multiple projects going on in different locations. Since no two projects are ever the same, each job site will have unique schedules, conditions, tasks, and multiple pay rates. In this guide, we’ll give contractors everything they need to know to understand the basics of construction payroll and the importance of efficient payroll management. With job costing and tracking, you can assign specific costs to each job or project, allowing you to see how much money is being spent on labor for each one.

• However, payroll is more than cutting a check to your employees every two weeks.
• We’ll track contractor payments and help you fill out your 1099s—just send copies to contractors and get back to business.
• The software automates much of the work for you, freeing you up for more important matters at hand.
• You can cut checks for each employee or pay them through your company’s bank via direct deposit.
• We feel ADP Payroll does the best job with its top tech and over 70 years in the industry.

Legacy systems and manual processes are not only inefficient but also lack the integration capabilities needed to maintain transparency across projects. Data silos are a particular pain point, preventing teams from accessing accurate insights and making informed decisions. The 2025 payroll and labor law updates bring significant changes for construction teams. From federal overtime thresholds to state-specific sick Partnership Accounting leave expansions, these updates require immediate attention. By following the tips and best practices outlined above, you can ensure compliance and protect your business.