payroll software for construction company

If paying your team involves a complicated system of spreadsheets and handwritten notes to the office staff, or more than one kind of software, then you probably need to be in the market for a new software that removes the need for extra work and makes your business easier to run.

Why is construction payroll so complex?

With many types of employees putting in hours on different projects, you may pay different tax rates if you have projects in two different states. Also, there are Federally mandated wage reporting requirements when you do work on a Federally funded or Federally assisted project. Some projects are completed by unionized contactors, and almost every project includes one or more subcontractors.

Here are some clues that might be time to consider construction-specific payroll software:

  • Timesheets that somehow get lost between the work site and the office.

  • Inaccuracies on timesheets due to too much time between the completion of work and filling out the forms.

  • Extra hours of rekeying information or transferring data from timekeeping software to your payroll software.

  • Extra hours of rekeying information from the payroll spreadsheet into the job cost spreadsheet.

If you aren’t using payroll software built specifically for the construction industry, you may be spending more time on payroll than needed. Take advantage of software that’s designed to make a complex job easier. Here’s what you should look for when you’re auditioning your payroll software for construction:

Accurate Time Capture

If you have teams working on multiple projects in different locations, it’s important to be able to capture hours worked accurately and easily. Your construction payroll software should be accessible on-site via digital devices such as smart phones and tablets. Additionally, you should be able to set a streamlined approvals process so that your office staff doesn’t have to spend time on a back and forth to confirm data sent to the office from the job site

Wages and Taxes

You want to be certain your payroll meets all Federal and State wage and tax rules. Construction payroll software should be able to meet Davis Bacon standards and create certified payroll. Additionally, the software should be able to handle union deductions.

Reports That Give You the True Business Picture

Payroll software that’s made for construction companies should make reporting on your finances easier. Make sure your software delivers financial reports that show new hires, labor, and hour variances, as well as the certified payroll report that every contractor who works on government funded projects will need.


Job cost updates are the most important indicator of the risk to your budget. Your payroll software should be fully integrated to update job costs in real-time, so you’ll always know how you’re performing on a project.

Explorer’s payroll for construction companies has all these features that you need to manage and pay your workforce with ease.

Click here to read more about our payroll features, or contact us for a demo today.