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Construction Companies: Payroll Software vs. Managed Payroll Service (2026)
Construction companies evaluating payroll options typically compare managed payroll service against payroll software. Here is the honest comparison.
Managed payroll service (like BEG) means a provider processes payroll for you. You submit hours and changes; they handle the rest including tax deposits, compliance, and year-end forms.
Payroll software (Gusto, ADP Run, Paychex Flex) means you run payroll yourself using a platform. You are responsible for configuring it correctly and keeping up with compliance changes.
Side-by-Side Comparison for Construction Companies
| Payroll Task | Managed Payroll | DIY Software |
|---|---|---|
| Prevailing wage compliance setup | Configured for you | You configure |
| Tax deposits | Handled | You are responsible |
| Compliance updates | Applied automatically | Your responsibility |
| Multi-state filing | Included | Varies by plan |
| Year-end W-2s | Included | Included or add-on |
| Payroll errors | Provider corrects at cost | Your cost to fix |
| New hire onboarding | Handled | You set up |
Which Is Right for Construction Companies?
For most construction companies under 100 employees, managed payroll wins on total cost and compliance coverage. The tradeoff -- giving up direct software access -- is outweighed by removing the compliance risk that comes with self-managing prevailing wage compliance, certified payroll, union vs non-union, seasonal crew cycles.
Payroll software makes sense if you have dedicated in-house HR staff with genuine expertise in Construction Companies payroll compliance, prefer hands-on control, and have a low tolerance for vendor dependency. These are real advantages, but they come with real responsibility.
Managed Payroll, Handled.
BEG manages payroll at $25-$45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
Can you handle certified payroll for government projects?
Yes. Certified payroll reports under Davis-Bacon and state prevailing wage laws are produced for each pay period in WH-347 format or state electronic reporting systems with fringe benefit credits documented.
How do you handle union vs. non-union employees on the same job?
Union and non-union employees are set up with separate pay rate structures and fringe benefit calculations. Union payroll includes remittance to applicable union trust funds.
Can you handle seasonal crew ramp-ups?
Yes. Bulk new hire entry processes seasonal crew in time for the first pay cycle, including new hire reporting, withholding setup, and direct deposit.
What does BEG charge for construction company payroll?
Construction payroll runs at $25-$45 per employee per month, all-inclusive. Certified payroll report production is included. For a 25-person crew, that is $625-$1,125 per month.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Construction Companies. BEG manages payroll at $25-$45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage and Hour Division
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