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Construction Companies: Multi-Location Payroll Guide (2026)
Multi-location payroll for construction companies means one payroll with per-location cost centers, a state account wherever a location or a remote employee sits, headcount thresholds counted across the whole company, and the construction company rules cited here applied at every site. 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.
Rules that change with a second construction company location
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 lists these typical construction violations: not recording work before or after the shift, shorting hours as down time or rain delay, unpaid meal breaks where the employee is not fully relieved, banking overtime as comp time, failing to combine hours worked in more than one job classification in the same workweek, and not paying for travel from the shop to the work site and back.
What is counted company-wide
OSHA recordkeeping, the ADA and Title VII, COBRA, FMLA and the ACA employer mandate all count employees across every location, so a second site can trip a threshold no single site reaches. FMLA eligibility is the exception: the 50-employee test is measured within 75 miles of the employee's own worksite. A location in a new state adds a withholding account (unless the state has no wage tax), an unemployment account, that state's minimum wage and overtime rule for laborers and carpenters, and its new hire and final pay deadlines.
How the payroll is structured
One EIN, one payroll, one set of pay codes for prevailing wage compliance, certified payroll and union vs non-union, with location as a cost center on every employee record so labor cost, tax registrations and required postings resolve by site. Separate EINs per location are a legal-entity decision, not a payroll one, and each EIN files its own 941s and W-2s.
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]
- DOL lists these typical construction violations: not recording work before or after the shift, shorting hours as down time or rain delay, unpaid meal breaks where the employee is not fully relieved, banking overtime as comp time, failing to combine hours worked in more than one job classification in the same workweek, and not paying for travel from the shop to the work site and back. [DOL Fact Sheet #1]
Read the full guide to how to manage payroll in multiple states, and the rest of the construction company payroll library.
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Frequently Asked Questions
Does a second construction company location need its own payroll?
No. One payroll with location cost centers is the norm under a single EIN. A second EIN, if the entity structure requires one, files its own returns and W-2s.
Which thresholds count employees across all construction company locations?
OSHA logs, Title VII and the ADA, COBRA, FMLA coverage and the ACA employer mandate. FMLA eligibility for an individual is measured within 75 miles of that employee's worksite.
Construction company multi-site rule: DOL Fact Sheet #1
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.
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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