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Construction Companies: Setting Up Direct Deposit (2026)
Direct deposit for a construction company is set up once per employee with a bank authorization, prenoted, then paid through ACH on the pay schedule the state allows, with prevailing wage compliance and certified payroll settling on the same file. BEG runs construction company payroll for $45 per employee per month inside the payroll software you already use, all-inclusive, live in 3 to 5 business days.
Setup for construction companies
Each employee signs a direct deposit authorization with routing and account numbers, the account is prenoted with a zero-dollar test before the first live deposit, and split deposits are recorded per employee. Federal law does not let an employer make direct deposit mandatory to a bank of the employer's choosing, and most states require a paper or pay card alternative for employees who do not opt in.
A construction business with two or more employees and $500,000 or more in annual gross sales is covered by the FLSA, and individual employees whose work involves interstate commerce are covered regardless of the employer's sales. Overtime is owed after 40 hours in each workweek; paying overtime only after 80 hours in a biweekly period is illegal because each workweek stands alone.
Timing and the construction company pay cycle
The ACH file goes two banking days before payday for the funds to land on the date, which means hours for laborers and carpenters close earlier than the payday itself, and prevailing wage compliance for the period is settled on that file or on a documented later settlement date. Off-cycle runs, final checks and corrections use same-day ACH where the bank supports it.
On Davis-Bacon covered work the prevailing wage is the basic hourly rate plus the fringe benefit amount listed in the wage determination. The contractor may satisfy it by paying the whole amount as cash wages or by a combination of cash wages and bona fide fringe benefits, and it must be paid for all hours worked on the site of the work.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- A construction business with two or more employees and $500,000 or more in annual gross sales is covered by the FLSA, and individual employees whose work involves interstate commerce are covered regardless of the employer's sales. Overtime is owed after 40 hours in each workweek; paying overtime only after 80 hours in a biweekly period is illegal because each workweek stands alone. [DOL Fact Sheet #1]
- On Davis-Bacon covered work the prevailing wage is the basic hourly rate plus the fringe benefit amount listed in the wage determination. The contractor may satisfy it by paying the whole amount as cash wages or by a combination of cash wages and bona fide fringe benefits, and it must be paid for all hours worked on the site of the work. [DOL Fact Sheet #66]
Read the full guide to how to set up direct deposit, and the rest of the construction company payroll library.
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Frequently Asked Questions
Can a construction company require direct deposit?
Federal Regulation E bars an employer from requiring deposit to a particular bank; the employee chooses the account. Many states add that a no-fee alternative must be offered, so a written opt-in with an alternative is the safe policy.
When does the construction company pay file have to be released?
Two banking days before payday for standard ACH. Same-day ACH is available for off-cycle runs and corrections at a higher per-item cost. A construction business with two or more employees and $500,000 or more in annual gross sales is covered by the FLSA, and individual employees whose work involves interstate commerce are covered regardless of the employer's sales.
What does managed payroll cost for a construction company?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Prevailing wage compliance, certified payroll and union vs non-union are configured at setup, not billed as add-ons.
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 $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: IRS: Understanding Employment Taxes
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