
Running construction payroll with an hourly crew? Things get messy fast.
Your team's spread across three job sites. Someone's working overtime in one county while another crew's on prevailing wage rates two towns over. And you're trying to figure out who worked what hours where—before Friday's payday.
Construction payroll software handles this chaos for you.
Track hours no matter where your crew clocks in. Calculate different pay rates in a few clicks. Stay up to date with payroll reports and labor compliance laws no matter where the next job site is.
We've taken a look at the best construction payroll software for 2025. Some were built just for construction companies. Others are flexible enough to handle any hourly team throwing curveballs at you.
Here's what actually works when your crew's everywhere and payday's coming.
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TL;DR: Best construction payroll software in 2025
Short on time? Here are the top 5:
Homebase – Best overall for hourly construction teams.
- Covers scheduling, time tracking, payroll, and team messaging. Manage crews across multiple job sites from one app.
QuickBooks Payroll – Best if you already use QuickBooks.
- Syncs with your accounting. Automates tax filings and direct deposit.
ADP – Best for growing construction companies.
- Detailed reports and advanced features. Scales with your business.
Gusto – Best for offering employee benefits.
- Handles payroll, benefits, compliance. Works for salaried employees or contractors.
Payroll4Construction – Best for construction-specific features.
- Built for certified payroll, prevailing wage, job costing, union requirements.
What is construction payroll software?
Construction payroll software handles the complicated stuff: wages, taxes, time tracking, and compliance for construction teams.
It gets your crew paid correctly and on time. Keeps you compliant with labor laws. Basically, it does the math you don't want to do.
Why construction needs specialized payroll:
Your crew isn't working 9-to-5 desk jobs. You've got:
- Framers, electricians, and site managers working different rates
- Teams spread across multiple job sites and tax jurisdictions
- Union wages in one location, prevailing wage requirements in another
- Hours that need tracking by project for accurate job costing
Regular payroll software can't handle this complexity.
Construction payroll software tracks where every hour gets worked and what rate applies. It then connects those hours to specific projects so you know actual labor costs—not just what you paid out.
Why construction payroll is more complicated than regular payroll
Construction payroll isn't just "pay your people and you're done."
Job costing requirements
You need every single hour tracked to specific projects and cost codes. Between 40% and 50% of the average construction project's cost goes towards labor. That's half your money—you better know where it's going.
Without accurate job costing, you're bidding blind. You can't tell which projects actually made you money until it's too late to fix anything.
Crews working everywhere at once
On Monday your team's doing government work. Tuesday they're across the county on a private job. Wednesday they're in a different state entirely.
Each location has different pay rules. Different overtime thresholds. Different taxes. Get someone's rate wrong at the wrong site? You're the one fixing it and eating the cost.
Union requirements
If you work with unions, you're juggling:
- Different wage tables for each union and trade
- Fringe benefits that change by contract
- Dues that need deducting and reporting
- Rules from every collective bargaining agreement
Miss something, and the union rep will be calling you. Not a fun conversation.
Certified payroll mandates
Any federal contract over $2,000 requires certified payroll reports. You're filing Form WH-347 every single week. Tracking wages by location and job type. Keeping records for three years.
Real consequences of getting it wrong
Since 1985, construction companies have paid back over $177 million in wages from Davis-Bacon violations. Get caught with serious violations, and you're banned from federal contracts for three years.
They'll withhold your contract payments until you've paid back what you owe. Legal bills stack up. Your business reputation takes the hit.
Worried about screwing up compliance? The right compliance software catches these mistakes before they cost you.
Top construction payroll software features to look for as a small business
You're busy running jobs. Here's what actually matters when you're choosing payroll software.
GPS time tracking for construction crews
Your crews bounce between job sites all day. The right software lets them clock in from wherever they're working—no office trips required.
Set up geofencing and workers can only clock in when they're actually at the site. You know who showed up where without playing detective or making awkward phone calls.
Stops buddy punching before it starts. Less time policing, more time managing.
Automated construction payroll tax calculations
When your crew works across state lines, tax rules get messy fast. Someone works Monday in Oregon, Wednesday in Washington, Friday back in Oregon—software figures out which tax rules apply to which hours.
It handles the withholding calculations. Files everything on the right schedule. Organizes your records so tax season doesn't turn into a nightmare scramble.
Built-in compliance alerts
Good software watches overtime thresholds while you're focused on getting work done. Tracks break requirements based on where people are working. Flags problems before they become expensive violations.
Get notified when someone's approaching overtime so you can adjust the schedule. Stay ahead of issues instead of explaining them to regulators later.
Bonus: it'll also remind you when certifications are expiring. No more discovering someone's forklift license lapsed three weeks ago.
Construction payroll compliance tools
Connect time tracking straight to your job costing system and every hour automatically lands in the right project bucket.
See actual labor costs while jobs are running, not after they're finished. Compare what you estimated against what's really happening. Catch problems in week two instead of discovering them in month six when there's nothing left to fix.
Scheduling software for construction teams
Managing schedules across multiple job sites gets complicated when you're juggling permits, weather delays, and subcontractor availability.
Look for scheduling built into your payroll software. Build crew schedules that connect directly to time tracking and payroll. When someone clocks in, it's already tied to their scheduled shift and the right job code.
"Homebase makes it simple to quickly create schedules with multiple employees on rotating shifts. If any updates are made that create a conflict in the schedule, Homebase identifies and warns of those conflicts." – Stephanie Hannink, Front of House Manager, Stanislaus Towing Services
Top 5 best construction payroll software tools for 2025
You want software that lets your team focus on the actual work. Here's what's actually working for construction pros in 2025.
1. Homebase: Best construction payroll software for small hourly teams
Running a busy shift-based construction crew? Homebase handles everything from scheduling to time tracking to payroll, all in one place.
Teams clock in from different job sites right from their phones. GPS and photo verification show who's where. No more wondering if your morning crew actually showed up.
Pros:
- Turn job sites into time clocks with GPS, photo verification, and PINs
- Track hours, overtime, and pay rates with a few clicks
- Stay compliant with tools that track breaks, overtime, and certifications by location
- Message your crew and get real-time updates without hunting through text threads
- Over 100,000 small businesses use Homebase for team management
Cons:
- Not designed for larger construction enterprises
Pricing: Get your first 6 months of Homebase + Payroll for free! After that, pay only $39/month base fee + $6/month per active employee.
2. QuickBooks Payroll: Best if you're already using QuickBooks
QuickBooks is designed for accounting, and adding payroll integration makes sense if you're already in their ecosystem. Everything syncs automatically—no double entry, just data flowing where it needs to go.
Automates payroll processing, pays contractors via direct deposit, and handles tax filings.
Pros:
- Seamless integration with QuickBooks accounting
- Automatically calculates, files, and pays federal and state payroll taxes
- Direct deposit for employees and contractor payments
- Year-end forms generate automatically
Cons:
- Gets expensive if you're only using it for payroll
- Steeper learning curve than simpler platforms
Pricing: Starts at $44/month + $6.50/month per employee.
3. ADP: Best for construction companies planning to scale
Planning to grow your construction business into something bigger? ADP gives you tools that scale up with you.
Strong compliance features, workforce tracking, detailed reporting. If you want comprehensive reports and advanced features down the road, ADP handles it.
Pros:
- Scales with growing businesses, handles global payroll if you expand
- Strong compliance tools for tax, labor laws, and HR guidance
- Detailed reporting and analytics show payroll trends and labor costs in real time
- All-in-one HR platform covering retirement plans and health benefits
Cons:
- May be pricier than options built for small businesses
Pricing: Request a custom quote.
4. Gusto: Best for offering employee benefits
Gusto combines payroll, benefits, and HR tools in one platform. Strong for benefits administration, onboarding, compliance, and HR support.
If you're growing and want to offer more than just paychecks, Gusto makes benefits management straightforward.
Pros:
- Combines payroll, benefits, and HR in one user-friendly platform
- Automatically files payroll taxes and generates tax forms
- Scales whether you're paying salaried employees, contractors, or offering benefits
- Strong support for remote teams
Cons:
- Project tracking and time features cost extra on higher-tier plans
Pricing: Basic payroll and tax filing starts at $24.50/month base fee + $3/month per employee. More advanced features cost extra.
5. Payroll4Construction: Best for certified payroll and government contracts
Built specifically for construction companies, especially those handling government jobs. Payroll4Construction tackles union wages, certified payroll, prevailing wage rules, and report generation.
If government contracts are a big part of your business, this handles the specialized compliance headaches.
Pros:
- Built specifically for construction industry requirements
- Handles certified payroll reports and government contract compliance
- Project costing and job tracking built in
- Union wage tables and prevailing wage calculations
Cons:
- Higher pricing than general payroll platforms, especially for smaller operations
- Must request custom quote to see actual costs
Pricing: Request a custom quote.
How to choose the best construction payroll software for your business
Find payroll software that fits your crew, your chaos, and your compliance needs.
Choose construction payroll software for your team size
Got 5 people or 50? Match the platform to what you're actually dealing with:
- Homebase works great for small hourly teams
- ADP makes sense if you're planning to scale
- QuickBooks fits if you're already using their accounting
When comparing construction payroll software options, pick based on what problems you're solving, not just headcount.
Best payroll software for multi-site construction teams
One location? You've got options. Multiple sites across different counties or states? You need specific features.
Look for GPS tracking so crews can clock in from anywhere. Mobile-first platforms that work on any phone. Tax calculations that handle multiple jurisdictions automatically.
You shouldn't need to become a tax expert for five different locations just to run payroll for contractors.
Construction payroll compliance and complexity
Simple crews with standard rates can use basic payroll. Union contracts, government jobs, certified payroll? You need specialized construction payroll software like Payroll4Construction.
Buying software that can't handle your complexity costs more in the long run than paying for the right solution upfront.
Construction payroll software comparison checklist
Make a list of absolute must-haves when comparing the best payroll software for construction companies. Not nice-to-haves—features you can't run payroll without.
Watch for hidden costs. That $40/month base fee hits $160/month fast once you add employees and discover essential features cost extra.
Request demos with your actual scenarios. Show them your crew size, your locations, your specific complexity. See how the software handles your reality, not their generic sales pitch.
Read reviews from construction companies your size. What works for 200 people might overwhelm a 15-person crew.
Pick something that solves today's problems and grows with you. Switching payroll providers mid-year is painful—choose carefully the first time.
Homebase: Taking care of your construction payroll software needs
Good construction payroll software doesn't just cut checks. It helps you run your business.
Running a small construction crew with hourly workers? Homebase handles everything—hiring, scheduling, time tracking, payroll, compliance. One app. One login. Done.
Construction payroll that runs itself
Track hours, breaks, PTO automatically. Run payroll with a buffer day built in. Want full autopilot? Set it once, it runs forever. Pay crews across locations on any schedule. One flat fee.
Handle construction payroll paperwork with ease
Taxes calculated and filed. Direct deposits sent. Forms e-signed. New hires reported. W-2s and 1099s distributed. You're done.
Run construction payroll with compliance built-in
Local labor laws? Tracked. PTO policies? Set. Time cards? Stored securely. Certifications expiring? You'll know before it's a problem.
Easy payroll software for construction companies
Free setup. Run payroll from your phone. Real specialists answer when you call.
Your crew gets instant payday alerts, tracks their own earnings, accesses wages early, and messages you—all in one app.
Try Homebase free. See why 100,000+ small businesses trust us to make their teams unstoppable.
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FAQs about construction payroll software
What is the best payroll software for construction companies?
The best construction payroll software depends on your specific needs:
- Homebase - Small hourly teams
- QuickBooks Payroll - Already using QuickBooks
- ADP - Scaling companies
- Gusto - Benefits administration
- Payroll4Construction - Certified payroll
Pick based on what you actually need, not just features.
How much does construction payroll software cost?
Most construction payroll software charges a monthly base fee plus per-employee costs:
- Homebase: $39/month base + $6 per employee (first 6 months free)
- QuickBooks: $44/month base + $6.50 per employee
- ADP: Custom quote (request pricing)
- Gusto: $24.50/month base + $3 per employee (basic plan; advanced features cost extra)
- Payroll4Construction: Custom quote (request pricing)
Can payroll software for contractors handle certified payroll for government contracts?
Some payroll software for contractors handles certified payroll, most doesn't. Payroll4Construction is built specifically for certified payroll, prevailing wage tracking, and Form WH-347 submissions required for federal contracts over $2,000.
Most general payroll platforms skip these features. You'll need specialized construction software if government contracts are a big part of your business.
What construction payroll automation features should I look for?
Look for construction payroll automation that includes:
- Tax calculations across multiple jurisdictions
- Auto-calculated overtime and breaks
- Automatic direct deposit processing
- Payroll tax filing without manual input
- Auto-generated year-end forms (W-2s, 1099s)
- Clock in/out reminders for employees
Automation saves hours every pay period and stops costly mistakes before they happen.
How does construction payroll software help with compliance?
Construction payroll compliance software helps by:
- Tracking break requirements by location
- Monitoring overtime thresholds
- Storing time cards securely for audits
- Alerting you when certifications expire
- Updating automatically when labor laws change
Avoid fines and violations by letting software handle compliance monitoring.
How does GPS time tracking work for construction crews?
GPS time tracking lets crews clock in from job sites using their phones. Set up geofencing around locations and workers can only clock in when physically at the site. You see timestamps, GPS coordinates, and verification photos.
No more office trips just to punch in. Stops buddy punching before it starts.
Can I run payroll for multiple construction sites?
Yes. Good construction payroll software handles multiple job sites automatically, tracking which employees worked where and applying correct tax rules for each jurisdiction. Calculate different pay rates by site and run payroll for all locations from one system.
Essential when crews work across counties or states with different labor laws.
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Homebase Team
Remember: This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.
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