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Construction Companies: Managed Payroll for Small Businesses (Under 25 Employees) (2026)
Managed payroll for a small construction company is a complexity decision, not a headcount one: at $45 per employee with no monthly minimum a 10-person construction company pays $450 a month, and the case for it is strongest once prevailing wage compliance or a second state is in the picture. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
What managed payroll costs a small construction company
At $45 per employee per month with no monthly minimum and no setup fee, a 5-person construction company pays $225 a month, a 10-person one $450 and a 20-person one $900, all-inclusive. The cost grows one employee at a time, so there is no headcount to wait for. Payroll software at roughly $40 to $150 a month plus $5 to $12 per employee is cheaper in raw dollars for a single-state, all-W-2, hourly-and-salary payroll. The question is whether this construction company is that payroll.
The complications that decide it for construction companies
Non-management construction workers such as carpenters, electricians, plumbers, iron workers, operating engineers and laborers are blue-collar employees who cannot be classified as exempt under the FLSA white-collar exemptions no matter how highly paid. Those exemptions require a duties test and a salary of at least $684 per week.
Prevailing wage compliance, certified payroll, union vs non-union and seasonal crew cycles: each is a pay code that self-service software ships blank, and each is a place a small construction company with no payroll specialist gets it wrong for years before an audit or a wage claim finds it. One of these, or an employee in a second state, or a first garnishment order, is the point where the managed price stops being a premium.
What a small construction company is already subject to
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.
Below 50 employees the federal lines already crossed are e-filing at 10 information returns, OSHA logs at 11 unless the industry is on the exempt list, Title VII and the ADA at 15, and the ADEA and COBRA at 20. None of them wait for a payroll department to exist.
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.
- Non-management construction workers such as carpenters, electricians, plumbers, iron workers, operating engineers and laborers are blue-collar employees who cannot be classified as exempt under the FLSA white-collar exemptions no matter how highly paid. Those exemptions require a duties test and a salary of at least $684 per week. [DOL Fact Sheet #17P]
- 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]
Read the full guide to managed payroll by company size, and the rest of the construction company payroll library.
Managed Payroll, Handled.
BEG manages payroll at $45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
Is managed payroll worth it for a construction company under 20 employees?
When there is a complication: prevailing wage compliance, a second state, a garnishment, or a classification question about laborers and carpenters. Without one, software is the cheaper price for a simple payroll and this page says so.
What does a 10-person construction company pay?
$450 a month: 10 employees at $45 per employee, all-inclusive, with no monthly minimum and no setup fee.
Which construction company rule most often breaks a self-service setup?
Non-management construction workers such as carpenters, electricians, plumbers, iron workers, operating engineers and laborers are blue-collar employees who cannot be classified as exempt under the FLSA white-collar exemptions no matter how highly paid. Those exemptions require a duties test and a salary of at least $684 per week.
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: Independent Contractor or Employee
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