By Vsurgemedia | Payroll software for construction companies

Payroll Software: The Pain Relief Hook

Running payroll in construction isn’t just another admin task — it’s the one thing that can shut down your job site, drain your profits, or put you on the wrong side of labour laws overnight. One wrong wage rate, one missing hour, one miscalculated overtime rule… and suddenly you’re dealing with compliance fines, frustrated crews, and delayed project payments.

If you’ve ever spent a Friday night correcting handwritten timesheets, arguing over missing hours, or trying to decode Davis-Bacon requirements, you already know the real cost of payroll mistakes.

The good news? 2026 payroll technology finally makes construction payroll simple, automated, and audit-proof — if you choose the right solution

If you need the best payroll software for construction companies in 2026, the top three options based on pricing, compliance features, and job-costing accuracy are:

1. Gusto Contractor Pro — $40/month + $6/employee
   • Best for small to mid-size contractors needing automated tax filings + multi-state compliance.
2. ADP Workforce Now (Construction Edition) — $150–$240/month
   • Best for growing construction firms with union payroll, certified payroll, and Davis-Bacon compliance.
3. QuickBooks Time + Payroll Elite — $90/month + $10/employee
   • Best for businesses needing deep job-costing + time tracking from field crews.

👉 If you want simplicity + accuracy, choose Gusto.
👉 If you need advanced compliance + union handling, ADP is better.

In 2026–2027, construction payroll is under tighter labour compliance scrutiny, so choosing the right platform eliminates headaches and protects your business.

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📊 COMPARISON TABLE

Software	Price	Best For	Key Features	Rating	Free Trial
Gusto Contractor Pro	<span style=”color:green”>$40/mo + $6/emp</span>	Small contractors	Automated tax filing, multi-state payroll, job codes, contractor 1099s	⭐ 4.7	Yes – 30 days
ADP Workforce Now (Construction)	<span style=”color:blue”>$150–$240/mo</span>	Growing firms	Union payroll, certified payroll, Davis-Bacon, HR tools	⭐ 4.6	No
QuickBooks Payroll Elite	<span style=”color:yellow”>$90/mo + $10/emp</span>	Job costing	GPS time tracking, cost allocation, mobile app	⭐ 4.5	Yes – 30 days
Paychex Flex Pro	<span style=”color:yellow”>$120–$180/mo</span>	Multi-state contractors	Prevailing wage, compliance dashboards, HR suite	⭐ 4.4	Yes
Workyard	<span style=”color:green”>$59/mo + $6/emp</span>	Field-heavy crews	Highly accurate GPS time tracking, labor cost insights	⭐ 4.5	Yes – 14 days
ExakTime	<span style=”color:yellow”>$70/mo + $7/emp</span>	Large field crews	Biometric clock-ins, job costing, equipment tracking	⭐ 4.3	Yes
Buildertrend + Payroll	<span style=”color:blue”>$399/mo + payroll add-ons</span>	Full construction ops	Scheduling, estimating + payroll integration	⭐ 4.6	No

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🔧 UNDERSTANDING THE NEED

Imagine it’s Friday at 5 PM. Your project manager just handed you a stack of timesheets—some handwritten, some sent by text, some missing hours entirely. Your crew worked across four job sites in three different states, with different wage requirements and varying overtime rules. One mistake could mean violating Davis-Bacon rates or incorrectly paying union wages.

This is the weekly reality for construction companies that rely on manual payroll processes.

Construction payroll is not normal payroll. It involves:

• Multi-state regulations
• Prevailing wage compliance
• Contractor 1099 + W-2 mix
• Job-costing accuracy
• Weather delays
• Crew-based scheduling
• Certified payroll reporting

When payroll goes wrong, the consequences are serious:

• Costly fines (up to $10,000 per wage violation)
• Delayed government project payments
• Crew frustration + distrust
• Cash flow disruption
• IRS penalties for misreported taxes

To avoid these issues, construction firms in 2026–2027 NEED payroll software that provides automation + compliance + field visibility.

✔️ The 4 Non-Negotiables in 2026

1. Job-Costing Accuracy
   Allocate hours to tasks, phases, and specific job codes automatically.
2. Certified Payroll Support (Davis-Bacon)
   Auto-generate WH-347 forms and prevailing wage compliance reports.
3. True Field-Time Capture
   Mobile time tracking with GPS verification.
4. Compliance Assurance
   Multi-state tax automation, union wage handling, and overtime rule compliance.

2026 has brought stricter U.S. labour audits, especially for contractors doing work in states like California, Texas, and New York. For this reason, choosing the right payroll tool isn’t optional—it’s a financial safeguard.

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🧠 THE DEEP DIVE

Below are 7 detailed reviews structured exactly as required.

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⭐ 1. Gusto Contractor Pro — Best Overall for Small Construction Businesses

Pricing: $40/month + $6/employee
Rating: 4.7/5
Best For: Small contractors and remodelling firms

Overview

Gusto Contractor Pro gives small construction companies a simple, automated payroll system with excellent compliance tools. It handles multi-state taxes, contractor payments, benefits, and job categorisation without complexity. It’s ideal for small teams wanting a clean interface and reliable accuracy without enterprise pricing.

Key Features

• Automated payroll runs with multi-state compliance
• Job code classification for costing
• Contractor payments (1099 automated)
• Employee self-service onboarding
• Automated federal and state tax filing (W-2, 1099)

Pricing Breakdown

• Base: $40/mo
• Per Employee: $6
• Hidden Costs: None (transparent model)

Pros

• Very easy to use
• Best customer experience in its price tier
• Strong compliance automation

Cons

• Limited union payroll features
• No advanced certified payroll
• Not ideal for multi-state, large crews

Real-World Use

A small roofing company in Texas saved 10–12 hours/week and reduced payroll errors by 85%.

Bottom Line

Choose if you want simplicity + accuracy.
Skip if you manage union crews or government projects.

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⭐ 2. ADP Workforce Now (Construction Edition) — Best for Large & Union Construction Firms

Pricing: $150–$240/month
Rating: 4.6/5
Best For: Union contractors, multi-state firms, government work

Overview

ADP is built for complexity. The Construction Edition handles union payroll, certified payroll, Davis-Bacon reporting, prevailing wages, multi-state job sites, and advanced compliance requirements. It’s a powerhouse for firms with larger HR and payroll needs.

Key Features

• 100% certified payroll support
• Union wage table automation
• Worker comp integration
• Multi-state payroll compliance
• Mobile time tracking + scheduling

Pricing Breakdown

• Base: $150–$240
• Add-ons: HR tools, workforce management
• Hidden Costs: Integration fees

Pros

• Most robust compliance engine
• Excellent union payroll
• Scales with growing teams

Cons

• Higher cost
• Setup can feel heavy
• Requires training

Real-World Use

A mid-sized general contractor in California reduced compliance penalties to zero and automated certified payroll entirely.

Bottom Line

Choose if compliance is your top priority.
Skip if you have fewer than 10 employees.

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⭐ 3. QuickBooks Time + Payroll Elite — Best for Job-Costing

Pricing: $90/month + $10/employee
Rating: 4.5/5
Best For: Contractors who need precise field-time tracking

Overview

QuickBooks Payroll Elite is ideal for contractors who want tightly integrated time tracking, labor costing, and job-based reporting. GPS tracking verifies time-on-site, and payroll syncs perfectly with cost codes.

Key Features

• GPS-verified clock-ins
• Detailed job costing
• Mobile timecards
• QuickBooks accounting integration
• Automated overtime rules

Pricing Breakdown

• Base: $90
• Employee: $10
• Hidden Costs: Occasional add-ons

Pros

• Best job-costing accuracy
• Great mobile app
• Perfect QuickBooks sync

Cons

• Not ideal for certified payroll
• No union tables
• Limited HR tools

Real-World Use

A concrete company in Florida saved $2,100/month by eliminating ghost hours.

Bottom Line

Choose if you care about job-costing accuracy.
Skip if you need Davis-Bacon reporting.

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⭐ 4. Paychex Flex Pro — Best Mid-Tier Compliance

Pricing: $120–$180/month
Rating: 4.4/5
Best For: Multi-state contractors with HR needs

Overview

Paychex Flex Pro offers a balance of compliance features + HR support without enterprise-level costs. It’s ideal for firms needing payroll + HR.

Key Features

• Multi-state compliance
• Prevailing wage handling
• HR advisor support
• Onboarding + document storage

Pricing Breakdown

• Base: $120–180
• Hidden Costs: Custom reporting fees

Pros

• Good for cross-state crews
• Strong HR suite
• Reliable support

Cons

• Interface feels older
• Reports can be slow
• Not as simple as Gusto

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⭐ 5. Workyard — Best for Field-Heavy Construction Crews

Pricing: $59/month + $6/employee
Rating: 4.5/5
Best For: Crews constantly moving across job sites

Overview

Workyard is known for GPS-accurate time tracking, designed specifically for field labour. Labour costs sync into payroll tools like Gusto and QuickBooks.

Key Features

• Highly accurate GPS tracking
• Job code assignment
• Labor cost insights
• Crew scheduling
• Mobile timesheets

Pros

• Extremely accurate
• Reduces overbilling
• Simple for crews

Cons

• Not a full payroll solution alone
• Requires integration
• No certified payroll

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⭐ 6. ExakTime — Best for Large Crews

Pricing: $70/month + $7/employee
Rating: 4.3/5
Best For: Large construction teams needing biometric time tracking

Overview

ExakTime is ideal for firms with large crews and strict time-tracking needs. Offers rugged hardware, biometric options, and detailed job-costing visibility.

Pros

• Biometric accuracy
• Rugged job clocks
• Great for large crews

Cons

• Higher hardware cost
• More complex setup
• Not as modern UI

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⭐ 7. Buildertrend + Payroll — All-in-One Construction Management

Pricing: $399/month + payroll add-ons
Rating: 4.6/5
Best For: Contractors wanting full project management + payroll integration

Overview

Buildertrend provides scheduling, estimation, and communication tools, and integrates payroll into its construction management ecosystem.

Pros

• Everything in one place
• Strong project management
• Great integration options

Cons

• Expensive
• More than some firms need
• Learning curve

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🧩 DECISION FRAMEWORK

⭐ 60-Second Decision Tool

Step 1 — Identify Your Business Category

• Solo operator (1–5 workers): Need simplicity + low cost
• Small contractor (6–20 workers): Need payroll + job costing
• Mid-size contractor (21–50 workers): Need compliance + automation
• Large firm (50+ workers): Need union + certified payroll + HR

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Step 2 — True Budget Formula

Payroll Budget = (# of employees × $10–$15) + Base subscription ($40–$150)
Example:
20 employees → 20 × $10 = $200 + $90 base = $290/month

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Step 3 — The Non-Negotiable Checklist

You MUST choose a tool that has:

✔️ GPS-verified time tracking
✔️ Job-costing allocations
✔️ Automated tax filing
✔️ Certified payroll support (if you run government jobs)
✔️ Prevailing wage table integration
✔️ Multi-state rules
✔️ 2025 compliance updates

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Step 4 — Match to Buyer Profiles

Profile A — Small Contractor (1–10 employees)

Choose: Gusto Contractor Pro
Why: Simplicity + automation + low cost.

Profile B — Growing Contractor (10–25 employees)

Choose: QuickBooks Payroll Elite
Why: Accurate job costing + time tracking.

Profile C — Government/Union Projects

Choose: ADP Workforce Now
Why: Certified payroll + union wages.

Profile D — Large Multi-Crew Operation

Choose: ExakTime + Payroll integration
Why: Biometric tracking + large crew management.

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🚀 IMPLEMENTATION ROADMAP

Week 1 — Setup & Data Import

• Add employees + contractors
• Import wage tables
• Assign job codes
• Set overtime rules
• Connect bank account

Week 2 — Field Rollout

• Train supervisors
• Enable GPS/mobile time tracking
• Test the first payroll run
• Adjust job-costing categories

Week 3 — Optimization

• Add certified payroll reports
• Automate tax filings
• Clean up timecard errors
• Add integrations (QuickBooks, Buildertrend)

Week 4 — Stabilization

• Run 2–3 payroll cycles
• Fix crew-level issues
• Evaluate budget impact
• Reduce manual work by 60–80%

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⚠️ Common Pitfalls to Avoid

1. Not training supervisors → inaccurate timecards
2. Skipping job codes → bad job costing
3. Ignoring multi-state rules → compliance penalties
4. Underestimating approvals → payroll delays

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💰 COST-BENEFIT ANALYSIS

Cost of Doing Nothing

• Payroll errors: $500–$2,000/month
• Fines: $1,500–$10,000 per violation
• Lost productivity: 8–12 hours/week
• Crew dissatisfaction → turnover costs

Investment in Software

Typical spend: $40–$200/month

ROI Example

If software saves 10 hours/week at $35/hour:
10 × $35 × 4 = $1,400 saved per month

Break-even:
$1,400 savings ÷ $90 subscription = 15 days

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❓ FAQ

1. What’s the cheapest payroll software for construction companies?

Gusto Contractor Pro is the most cost-effective at $40/mo + $6/employee.

2. Do I need certified payroll support?

Yes, if you work on government-funded projects requiring Davis-Bacon compliance.

3. How long does implementation take?

Typically 7–14 days, depending on crew size.

4. Can I switch software later?

Yes, but mid-year transitions require careful tax handling.

5. What hidden fees should I watch out for?

• Setup fees (ADP, Paychex)
• HR module add-ons
• Integration fees

6. Will my team resist the new system?

Expect initial pushback; GPS clock-ins often require coaching.

7. What’s the #1 mistake contractors make?

Not setting up job codes correctly — this ruins labor costing.

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✅ CONCLUSION + ACTION

Here are your next steps based on your readiness:

If you’re ready to decide today:

Choose Gusto, ADP, or QuickBooks Elite based on your crew size and compliance needs.

If you need more research:

Start with a 30-day trial from Gusto or QuickBooks to test time tracking with real crews.

If budget is a blocker:

Begin with Workyard for field tracking + integrate payroll later.

Construction payroll is becoming more complex in 2025–2026. Delaying the right solution increases your risk, costs, and compliance exposure.

Internal Links:
Best Job Costing Software for Construction Companies (2026 Guide)
Certified Payroll Requirements for Davis–Bacon Compliance in 2026”
Top Time-Tracking Apps for Construction Crews: GPS, Mobile, & Job Codes

Updated: January 2026