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Construction Companies: Managing Payroll During Peak Season (2026)
Peak season payroll for construction companies is the same rules under more volume: overtime after 40 on a regular rate that includes prevailing wage compliance, new hire reporting for every seasonal hire inside the state deadline, and youth rules where minors are hired. 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.
What the data says about construction company seasonality
BLS notes that construction employment varies through the year, often because of the weather. In 2017 the not seasonally adjusted construction employment level ranged from about 6.4 million to 7.2 million jobs, while the seasonally adjusted level stayed between 6.8 million and 7.1 million.
Payroll mechanics of a spike
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.
Every seasonal hire is a full onboarding: W-4, I-9 within three business days, new hire report inside the state deadline, and a pay code from day one. A wave of hires also moves the employer across headcount lines if it persists: the ACA and COBRA tests look at the prior year's average, so a seasonal peak can raise next year's count. Deposits scale with liability; a payroll that reaches $100,000 in accumulated liability on any day owes a next-business-day deposit and moves to the semiweekly schedule.
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.
- BLS notes that construction employment varies through the year, often because of the weather. In 2017 the not seasonally adjusted construction employment level ranged from about 6.4 million to 7.2 million jobs, while the seasonally adjusted level stayed between 6.8 million and 7.1 million. [BLS Commissioner's Corner, Using Seasonally Adjusted Data or Not (2018)]
- 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 off-cycle and peak payroll runs, 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
Do seasonal construction company hires need new hire reports?
Yes, every one, inside the state deadline (20 days federal default, shorter in several states), and rehires after 60 days are reported again.
How does a busy season change overtime at a construction company?
It does not change the rule, only the volume: time and one half after 40 hours in each workweek on a regular rate that includes prevailing wage compliance. 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.
Is there data on construction company seasonal employment?
BLS notes that construction employment varies through the year, often because of the weather. In 2017 the not seasonally adjusted construction employment level ranged from about 6.4 million to 7.2 million jobs, while the seasonally adjusted level stayed between 6.8 million and 7.1 million.
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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