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Construction businesses with employees rely on payroll to ensure everyone gets paid in a timely manner. The payroll process can be daunting, but there are a handful of software options available to facilitate things. This article covers the best construction payroll software and why you should consider picking one up for your business.
Features and Benefits of Construction Payroll Software and Services
There are a number of good reasons to invest in construction payroll software for your business. Here are some of the top benefits.
Avoid Mistakes
Making an error when processing your company’s payroll can lead to all sorts of issues. Over and underpaying your employees not only makes you look bad, it can have a significant impact on your books. If you don’t catch the mistake, the damage only compounds over time.
Construction payroll accounting software does a lot of this work for you, often automatically calculating wages from time tracking or your HR system. This dramatically reduces the likelihood of such errors happening.
Tax Compliance
Staying on top of frequently-changing tax laws can be extremely cumbersome. What’s worse, if you miss an important change, you may have to deal with fines or penalties.
Many construction payroll services carefully monitor the latest tax laws so you don’t have to. Not only will you always be up to speed, you’ll also see how exactly payroll taxes play into each outgoing paycheck. Payroll systems typically alert you when it’s time to file so you don’t miss any deadlines.
Save Time
It should come as no surprise that payroll systems can save you a ton of time on your submissions. The software automates much of the work for you, freeing you up for more important matters at hand.
There may be some initial inputting of employee data, but your construction payroll software can take over from there. As employee wages change, the platform should update all corresponding information so you don’t have to.
No Need for Payroll Expertise
Using payroll software eliminates the need for a level of expertise in the field. If you’re the only one handling your company’s payroll, you don’t need to spend time and money on courses to be more proficient in payroll processing.
This also means you don’t have to hire a payroll specialist to come in and run the numbers for you. It may even be possible to hand payroll tasks to a trusted employee already in your organization, even if they don’t have experience.
Security
Your employee records contain all sorts of personal information about each person in your company. It falls on your shoulders to protect that data from unscrupulous people out on the internet. The best construction payroll software encrypts this data from prying eyes and keeps your employees safe.
Accurate Time Tracking
If your employees get paid by the hour, you’ll want an accurate system to track work schedules and when each person clocks in and out. This can be a challenge for businesses with more than a handful of staff.
Fortunately, construction payroll timesheet software keeps close tabs on when your employees are working through their HR systems. You’ll get to the minute time sheets and avoid discrepancies with team members that could lead to frustration.
6 Best Construction Payroll Software
- ADP Payroll – Best Overall
- Gusto – Best for Contractors
- eBacon – Best for Ease of Use
- Rippling – Best for Customization
- Quickbooks Payroll – Best for QuickBooks Accounting Users
- Payroll4Construction – Best for Reports
When picking the best construction payroll software, we considered the cost and how easy each system was to use. We also looked into hiring and onboarding tools plus features pertaining specifically to payroll. Finally, we investigated each software’s reporting capabilities to keep you apprised of payroll dealings.
You can find a more detailed explanation of our methodology here.
ADP Payroll has a multitude of payroll packages for construction businesses of all shapes and sizes. These tools include everything from automated online payroll to help with federal, state, and local compliance. If you’re a new member, you’ll have access to up to three free months of payroll processing when you sign on the dotted line.
With so many offerings under its belt, you’ll need to work with an agent to build out the package that works best for you. The company has seven decades of payroll processing experience to back up its services.
Why we chose it: ADP’s comprehensive services designed for businesses of all sizes make it the best choice for construction payroll software.
- Top-tier payroll and HR tech
- Over 70 years in business
- Up to three months free payroll
- No pricing information on site
- Lackluster customer service
- Many features come with additional costs
Gusto: Best Construction Payroll Software for Contractors
Price: Starting at $40/month plus $6/month per person for employees, contractors from $0/month plus $6/month per person
It’s possible to run unlimited payrolls per month with Gusto, whether you’re dealing solely with contractors or dedicated employees. Each report takes mere minutes, and upgrading to the Plus plan enables you to run payroll in multiple states.
You can customize your payroll service from there, adding in features like time tracking, pay stubs, and custom paid holidays as you see fit. Pricing can be a little steep for employees, and there’s no free trial to test the software out.
Why we chose it: Gusto works exceptionally well for contractor-based businesses, thanks to budget-friendly pricing and a long list of features.
- Excellent payroll pricing for contractors
- Run payroll in minutes
- Dedicated support team
- Lacks a full-featured mobile app
- Costly for employees
- No free trial
Advanced time tracking capabilities keep your business compliant while providing accurate numbers for each of your staff. App and geoforce time tracking are just two of the ways employee hours flow directly into your payroll. In addition, eBacon helps save you money through fringe benefits management by lowering taxes and liabilities.
The software can also greatly reduce the time it takes to submit certified payroll through government-funded projects. You will need to contact the company for a quote, and check to see if eBacon works in your state before you do.
Why we chose it: eBacon simplifies many of the headaches that come with payroll, allowing you to get back to more pertinent tasks.
- Track time in 8 different ways
- Certified payroll made easy
- Comprehensive fringe benefits management
- Unclear pricing
- Not available in every state
- Limited customization
Rippling boasts running payroll in just 90 seconds, syncing with your HR data to minimize errors. Its services extend beyond HR to IT and finance as well. Each features a custom workflow builder to customize your setup any way you like.
The software plugs seamlessly into over 500 other apps to maximize your productivity. Top integrations include Google’s Workspace and Dropbox for file sharing. Although you can use Rippling for $8 per head, you will have to first purchase its core package which increases the price substantially.
Why we chose it: Several automation options and hundreds of integrations with other software give Rippling a very customizable approach to construction management software.
- Automations across multiple services
- User-friendly setup with fast processing
- Integrates with over 500 other apps
- Pricing can be unclear
- Requires core package to add payroll
- No free trial
QuickBooks Payroll: Best Construction Payroll Software for QuickBooks Accounting Users
Price: From $15/month plus $22.50/month for payroll
QuickBooks is well-known for its suite of accounting products. Naturally, it makes sense for the platform to have payroll services as well. All of its software options talk seamlessly to each other for ease of use and fast results.
Along that same vein, Quickbooks automates your payroll along with taxes and other forms your construction company has to deal with. This leads to fast direct depositing to your employees they’re sure to appreciate. Payroll is an additional fee to Quickbooks’ accounting software, so be sure to weigh the costs before making a purchase. You can learn more about QuickBooks Payroll here.
Why we chose it: It’s a no-brainer for businesses already using Quickbooks for accounting to add the software’s payroll services as well.
- Works perfectly with other QuickBooks products
- Automated taxes, forms, and payroll
- Fast direct deposit
- Payroll is an add-on cost
- Not as intuitive
- Some features only available in higher tiers
Payroll4construction: Best Construction Payroll Software for Reports
Price: Must reach out for a free quote
Payroll4Construction handles multiple jobs, locations, unions, and whatever else you decide to throw at it. Created specifically for construction businesses, it features everything from certified payroll to new hire onboarding and job costing for your projects.
With over 40 construction reports to choose from, you’ll always have innate access to how your construction company stands. If you’re frequently on the go, the cloud-based software keeps you apprised of the latest happenings. Your crew may need a bit of time to work through the payroll system’s nuances before mastering all it has to offer.
Why we chose it: More than 40 construction reports included in your membership give you the information you need when you need it.
- Over 40 unique reports
- Created specifically for the construction industry
- Cloud-based, runs from anywhere
- Unclear pricing information
- Slight learning curve
- Lacks some employee benefits
Factors to Consider When Choosing Construction Payroll Software and Services
We studied a myriad of factors when sifting through various types of construction payroll software. The following became our top considerations when selecting our favorites:
- Cost: We’d be remiss if we didn’t mention cost as a major factor for payroll software. While many systems charge per employee, using construction payroll software can save you time and the need to hire a professional. These funnel back into your business’s bottom line, saving untold money in the long run. Even though many of our picks don’t have overt pricing, we believe they’re some of the most budget-friendly options on the market.
- Ease of Use: Construction payroll software is only as good as its usability. We opted for platforms with user-friendly interfaces and straightforward tools so you can maximize productivity while minimizing effort.
- Hiring and Onboarding: What happens when it comes time to add a new employee to your construction business? We made sure our picks simplify the hiring process and offer ways to get new recruits up to speed quickly.
- Payroll Features: No two construction payroll software options are identical in their HR offerings. Therefore, we took a deep dive into each one’s payroll features to ensure they have what any construction company needs. These include time tracking, team management tools, tax filing help, and so much more.
- Reporting: Reports take a complex mess of data and condense it to an easy-to-decipher format. At a glance, you can see information on worker’s compensation, job hour variances, union reporting, or one of many other areas. Staying in tune with your company’s pulse helps you identify potential issues and ways to resolve them quickly.
Bottom Line
The best construction payroll software contains all the tools you need to make timely payments and stay compliant with the latest government regulations. These tools save time while minimizing errors that could lead to headaches down the road. We feel ADP Payroll does the best job with its top tech and over 70 years in the industry. That said, any of the picks on this list could serve you well.
Noah is an American copywriter on a mission to help clarify the nuances of the business world through unique insights stemming from backgrounds in both engineering and the medical field. When not working, you’ll likely find him running or traveling.
