The 8 Best Construction Payroll Software Solutions for 2026

Looking for construction payroll software for your business? We’ve reviewed 8 of the best apps on the market to help you!

FAQs
What’s the best construction payroll software for small businesses?

The best construction payroll software for small businesses depends on specific needs and requirements. However, some top-performing options include:

  • Gusto – An affordable and user-friendly solution that offers features such as managing multiple pay rates, tracking contractor payments, and detailed reporting. It’s suitable for small construction businesses that need to pay contractors and remote employees.
  • QuickBooks Payroll – A popular choice among small and large businesses alike. It offers advanced features like managing multiple pay rates, timesheet approval, and detailed project labor cost tracking. Due to its construction-specific tools and compliance assistance, it is beneficial for construction companies.
  • ADP Payroll – A comprehensive solution that provides tools for managing union wages and benefits, flexible payment options, and employee self-service portals. It suits small construction businesses that navigate complex payroll and HR requirements.
  • Rippling – Offers a range of features, including time tracking, direct deposit, and detailed reporting. It’s known for its ease of use and flexibility in managing payroll for employees and contractors.
  • eBacon – Excel is easy to use and offers automated payroll processing, compliance management, and detailed reporting features. It’s suitable for small construction businesses prioritizing simplicity and accuracy in their payroll processes.
What is an employment bond?

An employment bond, often referred to as a work bond or service agreement, is a contractual arrangement between an employer and an employee that goes beyond the typical terms of an employment contract. This legally binding document outlines specific conditions and commitments that both parties agree to during the course of employment.

In practice, bonds usually set a fixed service period and may require repayment of employer-covered costs (e.g., training, relocation) if the employee leaves early. Employers use bonds to protect their investment and promote retention, since potential paybacks discourage premature exits.

Terms vary by company and jurisdiction, so review the agreement before signing and understand any financial obligations tied to early termination; violating a bond can trigger agreed damages or other remedies.

How to calculate Davis-Bacon wages

To calculate Davis-Bacon wages, contractors must follow prevailing wage requirements set by the U.S. Department of Labor for federally funded projects. Key steps include:

  • Identify job classifications: Match workers (e.g., laborers, electricians) to correct categories.
  • Check prevailing rates: Use DOL wage determinations for your project’s location.
  • Add fringe benefits: Include health, retirement, or vacation pay.
  • Calculate pay: Multiply wage rate by hours worked.
  • Apply overtime: Pay 1.5× for extra hours.
  • Verify compliance: Review calculations against contract and labor standards.
What is contract labor on Schedule C?

Contract labor on Schedule C refers to payments made to independent contractors or subcontractors, not employees, for work done on behalf of a business. These costs are deductible business expenses.

  • Definition: Independent contractors hired for projects or tasks.
  • Reporting: Entered under Contract Labor on Schedule C.
  • Tax forms: Issue a 1099-NEC (or 1099-MISC before 2020) if payments exceed $600.
  • Deductions: Reduces taxable income as a business expense.
  • Difference from wages: Contractors get a 1099; employees receive a W-2.
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