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May 29, 2024 Erin Crowley

The Best Payroll Software for a Small Construction Company in 2024

The Best Payroll Software for a Small Construction Company in 2024

You didn't start your construction company to spend countless hours managing payroll. 

As a business owner in the construction industry, you've got enough on your plate. The last thing you need is to get bogged down in the complexities of payroll, especially when you're dealing with the unique challenges of construction, like contractor payments, certified payroll, and union compliance.

But here's the thing: payroll is not just a necessary evil; it's a critical component of your business's success. When you do payroll right, it’s a powerful tool for finding and keeping skilled workers, staying compliant with ever-changing regulations, and making informed decisions about your workforce.

A dedicated payroll provider who understands the ins and outs of the construction industry can be your secret weapon, helping you easily navigate the complexities of payroll. They can offer the expertise, support, and technology you need to streamline your processes, ensure compliance, and unlock valuable insights into your labor costs and workforce management.

In this article, we'll dive into the key considerations you should keep in mind when evaluating payroll solutions. We'll also take a closer look at five top providers that offer unique advantages tailored to the construction industry to help you find your best fit.

Considerations for Finding the Best Payroll for a Small Construction Company 

As a construction company owner, you understand the importance of managing payroll effectively. While there may be more exciting aspects of running your business, implementing the right payroll software can significantly streamline your operations and help you comply with various regulations.

Payroll software has numerous benefits, especially for the construction industry! It makes sure that your employees and contractors are paid accurately and that taxes are withheld correctly. It also helps you navigate the complex web of federal, state, and local tax laws and regulations, which can vary depending on the location of your projects.

Many payroll software solutions come equipped with self-service portals so your crews can access their pay stubs, tax forms, and other relevant information when and how it’s best for them. This feature saves your HR and payroll departments time and promotes transparency that your employees and contractors will appreciate. Payroll software can also integrate with other systems like time tracking and accounting software, streamlining your processes and reducing the need for manual data entry.

Another significant advantage of payroll software is that it can create reports that show real-time labor and resource costs. These reports give you the information you need to make smart decisions about managing your teams and resources, ultimately leading to more efficient and affordable construction projects.

Must-have payroll features for construction companies 

If you're in the market for payroll software that can handle the unique challenges of the construction industry, prioritize these must-have features:

  • Non-employee (contractor) payments

Working with contractors is a common practice in the construction industry, so an essential feature to look for is the ability to handle both employee and non-employee payments. This makes sure you pay all workers correctly and on time, regardless of their employment status.

  • Certified payroll functionality

Certified payroll is also non-negotiable, especially for construction companies working on government contracts that must comply with regulations and reporting requirements. The right software can automate this process, saving time and resources without causing you to worry about extra red tape.

  • Multi-state compliance

Construction companies operating across multiple states need to comply with different union withholding requirements. A payroll software that can help with the required paperwork and handle these variations can help keep you compliant and penalty-free. Look for a solution that automatically calculates and withholds the appropriate amounts based on each state's requirements.

  • Pay-on-demand

Finally, consider a payroll software that offers a pay-on-demand feature. This innovative functionality allows your employees to access their earned wages whenever they need it, rather than waiting for designated paydays. Pay-on-demand can be a significant morale booster and can help improve employee satisfaction and financial well-being. In an industry where cash flow can be a concern, this feature can make a real difference in the lives of your workers.

  • Expert guidance

If you need help with multi-state union withholdings or other HR-related issues, try ConnectPay’s HR Resource Center. It's a helpful tool that provides access to an HR hotline where you can speak with experienced professionals and get personalized advice to troubleshoot any issues.


Best Payroll Software for a Small Construction Company: 5 Solutions

Now that we've covered the must-have features to look for in a payroll software, let's dive into our top five picks for small construction companies.

  1. Gusto

    Gusto is an affordable payroll solution for small construction businesses that need to pay contractors and remote employees across the United States. With flexible plans and no long-term contracts, Gusto lets you manage payroll online and supports international contractor payments. Its tax registration features make it a great fit for businesses with remote workers. However, Gusto is a DIY solution, meaning you have to be comfortable doing most of the work yourself.

    Plans start at $40 monthly, plus an additional fee per user.

  2. QuickBooks Payroll 

    QuickBooks Online Payroll by Intuit is a popular choice for construction firms that are already using QuickBooks Accounting software. The smooth integration with QuickBooks Accounting makes it an affordable option for small business owners who are comfortable with technology and want to keep doing payroll independently.

    Intuit offers different packages based on your needs, including a basic plan for automated payrolls, a premium plan with inventory management and 1099 contractor management, and an elite plan with guided support. Pricing starts at $45 per month, plus $4 per employee.

  3. Patriot Payroll

    Patriot Software offers payroll solutions focused on time and attendance tracking. It offers free and easy onboarding, USA-based support, and two-day direct deposit. The platform has no long-term contracts, and users can run unlimited payrolls for a single monthly price. Patriot Software also offers accounting software and human resources solutions.

    Packages start at $17 per month plus $4 per employee.

  4. Payroll4Construction 

    Payroll4Construction is a construction-specific payroll provider with construction-specific reporting features. It supports multiple jobs, locations, unions, trades, and pay rates, automates prevailing wage rates, and provides union reporting and tracking. It also integrates with QuickBooks and allows quick electronic payroll setup and submission.

    Pricing is available upon request as plans are tailored to each business's specific needs.

  5. ConnectPay 

    ConnectPay offers a user-friendly and efficient payroll solution that seamlessly integrates with accounting tools like QuickBooks. The platform is designed for small businesses, making it easy to manage payroll without needing expert-level knowledge.

    What sets ConnectPay apart is our commitment to exceptional customer service. We understand the importance of direct, quick support when navigating payroll questions, so during business hours, you'll always reach a real person – never a voicemail or chatbot. Our Dedicated Onboarding Team is ready to help you make a smooth transition to our service or get you started with managed payroll for the first time.

    For construction companies specifically, ConnectPay offers features tailored to the industry's unique needs, like the ability to handle multiple pay rates, job classifications, and union requirements. The platform also lets you easily track and manage certified payroll, ensuring compliance with government regulations.

Choosing the Best Payroll for Your Small Construction Company 

When it comes to managing payroll for your small construction company, working with a dedicated provider can make all the difference. The best payroll software is more than just a tool for processing paychecks; it's a comprehensive solution that combines industry expertise, personalized support, and cutting-edge technology to help you navigate the unique challenges of construction payroll.

While there are several top-tier payroll providers in the market (many that we’ve just reviewed!), you want to find a partner who truly understands the construction industry's unique needs and challenges. Our digital timekeeping solution can support your job costing needs in real-time. Employees can clock in and out, transfer between job sites or locations, to track hours accurately.

By choosing ConnectPay as your payroll partner, your construction business can:

  • Streamline payroll processes, saving valuable time and resources
  • Ensure compliance with complex construction-specific regulations and requirements
  • Seamlessly integrate payroll with Quickbooks Online
  • Access powerful reporting and analytics to make informed workforce decisions
  • Benefit from a team of dedicated experts who specialize in construction payroll

Don't let payroll management burden your construction business any longer. Schedule a free Payroll Tax and Compliance Review today to take the first step toward transforming your payroll process.

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Published by Erin Crowley May 29, 2024