Construction Payroll Services Guide • Updated October 2026

Payroll for Construction Companies: Certified Payroll, Job Costing & Costs

Contractors face payroll rules most businesses never see: certified payroll, prevailing wages, union fringes, multiple pay rates and crews in several states. Learn what’s required and compare construction payroll services that handle it.

Compare Construction Payroll Quotes → See Construction Payroll Costs
Weeklycertified payroll on public jobs
$2,000+federal contracts covered by Davis-Bacon
$199–$750per month for 25 workers

How Does Payroll Work for Construction Companies?

Payroll for construction companies works like standard payroll plus industry-specific requirements: weekly certified payroll and prevailing wages on public projects, multiple pay rates per worker, union dues and fringe reporting, job costing by project, multi-state tax withholding for traveling crews, and workers’ comp by job class. General payroll software costs about $49 per month plus $6 per employee but usually can’t produce certified payroll; construction payroll services and full-service providers with construction modules typically cost more but automate it.

Not sure what you need? Tell us about your crews and projects and we’ll match you with construction payroll providers.

8 Payroll Challenges Unique to Construction

These are the reasons generic payroll setups often fall short for contractors.

Certified payrollFederally funded jobs require weekly certified payroll reports (Form WH-347 or equivalent) for every worker on site.

Prevailing wage & fringesPublic projects set minimum wage and fringe benefit rates by trade, county and job.

Multiple pay ratesOne worker can earn different rates for different trades, jobs or public vs. private work in the same week.

Union payrollDues deductions, fringe remittances to union funds and monthly union reports.

Job costingLabor plus burden (taxes, comp, benefits) charged to each job, phase and cost code.

Multi-state & local taxesCrews that cross state or city lines need withholding for each work location.

Workers’ comp class codesPremiums depend on job classification; pay-as-you-go comp ties premiums to each payroll.

Subcontractors & seasonal crews1099 subs, W-2 field crews, per diems and seasonal hiring all in one payroll.

Payroll for construction companies and field crews

Certified Payroll and Prevailing Wage Explained

Certified payroll is a weekly report that contractors and subcontractors on federally funded construction projects must submit to prove they paid workers the required prevailing wages and fringe benefits. The Davis-Bacon Act covers federal and federally assisted construction contracts over $2,000, and many states have their own prevailing wage laws for state and local public works.

How to prepare certified payroll, step by step:

1

Find the wage determination

Get the Davis-Bacon or state prevailing wage determination in your contract for each trade on the job.

2

Classify every worker by trade

Assign each worker the correct classification and rate; workers doing multiple trades need time split by classification.

3

Track hours by job and classification

Record daily hours per project and trade, with overtime calculated on the correct regular rate.

4

Pay wages and fringes

Pay at least the prevailing base rate plus fringe benefits, either as bona fide benefits or as cash.

5

Prepare the weekly certified payroll report

List each worker’s classification, hours, rates, gross pay, deductions and net pay on Form WH-347 or an equivalent.

6

Sign and submit the Statement of Compliance

An authorized officer signs and the report goes to the prime contractor or agency every week the job is active.

Why it matters: errors in certified payroll can lead to withheld contract payments, back-wage liability and, for serious violations, debarment from federal work. Payroll software that generates WH-347 reports directly from payroll data removes most manual-entry errors.
HR and payroll functions for construction companies

Bidding on public work? Get quotes from payroll providers that handle certified payroll and prevailing wage.

Compare Construction Payroll Quotes

How Much Does Construction Payroll Cost?

Construction payroll costs about $199 per month for 25 workers on general small business payroll, roughly $295 per month with a per-run construction payroll service, and $375–$750 per month with a full-service provider’s construction modules. Certified payroll, union reporting and job costing are what drive the difference.

Payroll optionWhat it costs25-worker exampleCertified payroll
General small business payroll (Gusto, OnPay)$49/mo + $6/employeeAbout $199/monthNo — manual or third-party add-on
QuickBooks Payroll + certified payroll add-on$50/mo + $6.50/employee + add-onAbout $213/month + add-onVia add-on (e.g., Points North)
Construction payroll service (e.g., Payroll4Construction)Priced per pay runAbout $136 per biweekly run (≈ $295/month)Yes, built in
Full-service payroll with construction modules (ADP, Paychex)Reported $15–$30 per employee/monthAbout $375–$750/monthAdd-on module
Construction ERP (Foundation, Sage 300 CRE)Several thousand dollars upfront + annual maintenanceVaries by modules and usersYes, built in

Estimates from published 2026 list prices and industry-reported quotes; construction payroll providers price by headcount, pay frequency, certified payroll volume and modules. Confirm with a quote.

Construction payroll pricing models compared

For fee details beyond construction, see our payroll outsourcing cost guide.

Best Payroll Services for Construction Companies

The right fit depends on how much public and union work you do. Contractors with regular certified payroll usually want it built in.

ProviderStarting priceBest forCertified payroll
Payroll4ConstructionPer pay run (quote)Certified payroll, prevailing wage, union reporting and job costing built inBuilt in
eBaconCustom quoteCertified payroll with union and prevailing wage calculations, multiple pay rates per jobBuilt in
Foundation SoftwareCustom quote (upfront + maintenance)All-in-one construction accounting and payroll, WH-347 generationBuilt in
Sage 300 CRE / Sage 100 ContractorEnterprise pricingLarge contractors with complex union and multi-company payrollBuilt in
ADP RUN / Workforce NowCustom quoteUnion payroll codes, job costing tools and room to grow into HR and benefitsAdd-on
Paychex FlexQuoted (entry reported from $39/mo + $5/employee)Hands-off payroll with specialist support; construction features cost moreSupported
QuickBooks Payroll$50/mo + $6.50/employeeJob costing through QuickBooks accounting; best for contractors already on QuickBooksVia add-on
Gusto$49/mo + $6/employeeSmall contractors and subs without government work; contractor-only plan availableNo

Pricing and features as published or reported in 2026; verify during your demo.

Small contractors, private work

Gusto, OnPay or QuickBooks Payroll keep costs low. See small business payroll.

Regular public or union work

Payroll4Construction or eBacon automate certified payroll, prevailing wage and union reports.

Mid-sized and large contractors

Foundation, Sage or ADP Workforce Now. See mid-sized business payroll.

Choosing the right construction payroll service provider

Must-Have Construction Payroll Features

Bring this list to every demo.

Certified payroll reports

WH-347 and state-specific reports generated straight from payroll.

Prevailing wage tables

Rates and fringes by trade, county and project applied automatically.

Job costing & cost codes

Labor and burden posted to jobs, phases and cost codes.

Multiple rates per employee

Different rates by trade, job or shift in the same pay period.

Union reporting

Dues, fringe remittances and union fund reports.

Mobile time tracking with GPS

Field crews clock in by job from their phones.

Multi-state tax filing

Withholding and filings for every state and city you work in.

Construction accounting integrations

Sync with QuickBooks, Foundation, Sage or Procore workflows.

Construction payroll software features

Job Costing: Know Your True Labor Cost per Project

Job costing assigns every labor dollar, plus its burden, to the job, phase and cost code it belongs to. Burden includes employer payroll taxes, workers’ comp, union fringes and benefits, which can add a substantial share on top of wages. Contractors who don’t capture burden by job routinely underbid.

Step 1Track time by job & cost code
Step 2Add taxes, comp & fringes
Step 3Post to your job cost reports

Compare the best payroll software and the best payroll outsourcing companies, learn about payroll tax filing for multi-state crews, read 7 payroll errors that could be costing you money, or find payroll providers near you. Other industries: manufacturing, restaurants.

Construction Payroll FAQs

How does payroll work for construction companies?

Construction payroll works like regular payroll but adds industry rules: certified payroll and prevailing wages on public projects, multiple pay rates for workers who do different trades, union dues and fringe reporting, job costing by project, multi-state and local tax withholding for traveling crews, and workers’ compensation by job classification.

What is certified payroll in construction?

Certified payroll is a weekly report required on federally funded construction projects covered by the Davis-Bacon Act and on many state public works jobs. It lists each worker’s classification, hours, pay rate, fringe benefits, deductions and net pay, and includes a signed Statement of Compliance. The federal format is Form WH-347.

When is certified payroll required?

Certified payroll is required on federally funded or assisted construction contracts over $2,000 covered by the Davis-Bacon Act, and on state or local public works projects covered by state prevailing wage laws. Contractors and subcontractors submit reports weekly while they work on the project.

What is the difference between prevailing wage and Davis-Bacon?

Davis-Bacon is the federal law that sets prevailing wages and fringe benefits on federally funded construction. Prevailing wage is the broader term, and many states have their own prevailing wage laws for state and local public works with their own rates and reporting rules.

How much does construction payroll cost?

General small business payroll costs about $49 per month plus $6 per employee but usually lacks certified payroll. Construction-specific payroll services typically price per pay run, for example about $136 per biweekly run for 25 workers, and full-service providers with construction modules are often reported at $15 to $30 per employee per month.

Can QuickBooks Payroll or Gusto do certified payroll?

Not natively. QuickBooks Payroll and ADP RUN can produce certified payroll through third-party add-ons such as Points North, while Gusto does not offer certified payroll. Contractors with regular public work often choose construction-specific payroll such as Payroll4Construction, eBacon or Foundation.

How is overtime calculated for construction workers with multiple pay rates?

When a worker earns different rates in the same workweek, overtime is generally based on a weighted average regular rate of all hours worked, unless the employer and employee agree in advance to pay overtime at the rate for the work performed during the overtime hours, as federal rules allow.

How do construction companies handle payroll in multiple states?

Construction companies generally withhold state income tax for the state where the work is performed, register for withholding and unemployment in each state, and follow reciprocity agreements between neighboring states. A payroll provider with multi-state and local tax support automates this.

Should subcontractors be paid through payroll?

Independent subcontractors are paid through accounts payable and receive a Form 1099-NEC when paid $2,000 or more in a year (the 2026 threshold), while workers the company directs and controls are employees who must be paid through payroll. Misclassifying employees as subcontractors can bring back taxes and penalties.

What is the best payroll for construction companies?

Payroll4Construction and eBacon are strong choices for contractors with certified payroll and union needs, Foundation and Sage suit larger contractors that want construction accounting and payroll together, ADP and Paychex suit growing companies that want full-service payroll with construction add-ons, and Gusto or QuickBooks work for small contractors without public work.

Get Construction Payroll Off Your Desk

Tell us about your crews, states and public work, and get free, no-obligation quotes from payroll providers that serve contractors.

Get Free Construction Payroll Quotes →

Free to use • No obligation • Takes about 2 minutes

Scroll to Top