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Run the Payroll Fee Auditor →Blog · Payroll Management · Construction
Construction Companies: How to Switch Payroll Providers (2026)
Switching payroll providers at a construction company means moving year-to-date wages and taxes per employee, every pay code for prevailing wage compliance, certified payroll and union vs non-union, the exemption records for laborers and carpenters, and the retained records the law requires. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
What has to migrate from a construction company
Year-to-date gross, taxes and deductions per employee so the W-2 is one form at year end; every pay code, prevailing wage compliance, certified payroll, union vs non-union and seasonal crew cycles, rebuilt with the same taxability; each state's withholding and unemployment account numbers and rates; garnishment orders with balances; direct deposit authorizations; and the exemption documentation for laborers and carpenters.
A contractor or subcontractor on Davis-Bacon covered work must submit certified payrolls weekly for each week in which covered work is performed, using Optional Form WH-347 or any other format, with each submission accompanied by a signed Statement of Compliance. Regular payrolls and basic records must be preserved for at least 3 years after all work on the prime contract is completed.
Timing the cutover
A quarter boundary is the cleanest cutover because the old provider files a final 941 for its quarter and the new one starts fresh, with no Schedule D reconciliation. Mid-quarter switches work but require the outgoing provider's tax filings to be reconciled before the first new run. Live payroll on BEG is 3 to 5 business days from signing; the migration of construction company pay codes is done before that first run, not after.
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 contractor or subcontractor on Davis-Bacon covered work must submit certified payrolls weekly for each week in which covered work is performed, using Optional Form WH-347 or any other format, with each submission accompanied by a signed Statement of Compliance. Regular payrolls and basic records must be preserved for at least 3 years after all work on the prime contract is completed. [29 CFR 5.5(a)(3)]
Read the full guide to how to switch payroll providers, and the rest of the construction company payroll library.
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Frequently Asked Questions
When is the best time for a construction company to switch payroll providers?
At a quarter boundary, ideally January 1 so the W-2 year is clean. Mid-quarter is workable with a reconciliation of the outgoing provider's deposits and filings first.
What construction company data is most often lost in a switch?
The pay code configuration for prevailing wage compliance and certified payroll and the exemption records for laborers and carpenters. Year-to-date figures usually move; the industry-specific setup is what gets rebuilt wrong.
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: U.S. Department of Labor: Wage and Hour Division
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