Free Payroll Tool
See what your payroll provider really charges
Most providers hide per-run and add-on fees. Audit your real cost per employee in about 30 seconds, free.
Run the Payroll Fee Auditor →Blog · Payroll Management · Construction
Construction Companies: Payroll Software vs. Managed Payroll Service (2026)
Payroll software gives a construction company the fields; managed payroll gives it someone accountable for filling them correctly, which for construction companies means prevailing wage compliance, certified payroll and union vs non-union configured against the rules cited here rather than left at defaults. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
What software leaves to a construction company to get right
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.
Workers under 18 may not perform most roofing work on or about a roof (HO 16), trenching or excavation work including working in a trench more than four feet deep (HO 17), or most wrecking and demolition work (HO 15). A limited exemption from HO 16 and HO 17 exists for apprentices and student-learners who are at least 16 and enrolled in approved programs.
The honest comparison
Software at roughly $40 to $150 a month plus $5 to $12 per employee handles a single-state, all-W-2, hourly-and-salary payroll well, and the customer owns every configuration decision, every deposit and every notice. Managed payroll at $45 per employee per month, with no monthly minimum, owns the configuration, the deposits, the filings and the corrections. For construction companies the deciding question is who documents the exemption status of laborers and carpenters and who rebuilds the pay codes when the rule changes.
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]
- Workers under 18 may not perform most roofing work on or about a roof (HO 16), trenching or excavation work including working in a trench more than four feet deep (HO 17), or most wrecking and demolition work (HO 15). A limited exemption from HO 16 and HO 17 exists for apprentices and student-learners who are at least 16 and enrolled in approved programs. [DOL Fact Sheet #43]
Read the full guide to fully managed versus self-service payroll, 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
What does payroll software get wrong 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.
When is software the right answer for a construction company?
A single state, all W-2, hourly and salary pay, no prevailing wage compliance, and under about 20 employees, where software's lower per-employee cost outweighs what a managed service adds.
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
From the blog