The 9 best construction payroll software tools for 2025

Managing payroll in the construction industry is a unique challenge. From tracking labor costs to ensuring compliance with multi-state regulations and managing contractor payments, construction businesses require specialized payroll solutions. The right payroll software can help streamline these processes, improve accuracy, and reduce administrative burdens for HR managers and construction executives.

In this guide, we’ll explore the best construction payroll software options for 2025, key features to look for, and how to choose the right solution for your business.

What is construction payroll software?

Construction payroll software is a digital solution designed to simplify payroll processes for construction businesses. Unlike traditional payroll software, it accounts for industry-specific challenges such as job costing, union wage requirements, and multi-state compliance. It automates payroll calculations, tax filings, and worker classifications, ensuring on-time and accurate compensation for employees and contractors.

For construction companies, managing payroll manually can be time-consuming and prone to errors, especially with varying pay rates, overtime rules, and government-mandated reporting. Outsourcing payroll to third-party software that integrates with time-tracking systems, job costing tools, and compliance management features can help businesses streamline operations and minimize risk.

Key features of construction payroll software

Payroll software that specializes in the construction industry should offer the following key features: 

Time tracking

Accurately tracking employee hours is critical in construction. Payroll software often integrates with time-tracking tools to record work hours, monitor overtime, and manage shift differentials.

Job costing

Job costing features help businesses allocate labor costs to specific projects, ensuring accurate budgeting and financial reporting.

Compliance management

Payroll services for construction include compliance features that help businesses adhere to multi-state labor laws, certified payroll requirements, and union regulations.

Reporting features

Advanced reporting tools allow HR and finance teams to generate payroll reports, track expenses, and gain insights into labor costs.

9 best construction payroll software systems

Here are the top payroll solutions designed to meet the unique needs of construction businesses:

1. Rippling

Rippling provides an all-in-one payroll and workforce management system that automates tax filings, streamlines payroll processing, and helps ensure multi-state compliance. Its robust integration with accounting and project management tools makes it a top choice for construction firms.

Pros:

• Automated tax calculations
• Customizable job costing tools
• Seamless integration with construction software

Cons:

• Requires additional setup for complex compliance needs

2. QuickBooks Payroll

QuickBooks Payroll is a user-friendly solution that integrates directly with QuickBooks accounting software. It offers automated payroll processing and contractor payment capabilities, making it ideal for small to mid-sized construction firms.

Pros:

• Easy integration with QuickBooks
• Automated payroll tax filings
• Direct deposit and contractor payments

Cons:

• Can be expensive is using as a standalone payroll software

3. Gusto

Gusto is a payroll and benefits platform with automation features designed for small construction businesses. It simplifies payroll management, tax compliance, and employee benefits administration.

Pros:

• Intuitive interface
• Automated tax filings and benefits administration
• Cost-effective for small teams

Cons:

• Advanced project tracking and time tracking features are limited to higher-tier plans

4. ADP

ADP provides enterprise-grade payroll services with a strong focus on compliance, workforce tracking, and reporting. It’s suitable for larger construction companies that require extensive reporting tools.

Pros:

• Scalable payroll solution
• Strong compliance management
• Detailed reporting and analytics

Cons:

• Higher cost for small businesses

5. Paychex

Paychex offers flexible payroll for construction businesses of all sizes. It includes time-tracking integration, tax compliance support, and automated payroll processing.

Pros:

• Strong compliance tracking
• Customizable payroll reports
• Scalable for businesses of all sizes

Cons:

• Initial setup can be complex

6. BambooHR

BambooHR combines payroll, HR management, and employee self-service features into one platform, making it an good option for mid-sized construction companies.

Pros:

• User-friendly payroll and HR system
• Employee self-service options
• Strong compliance features

Cons:

• Limited construction-specific integrations

7. Deel

Deel is a global payroll and compliance platform, particularly useful for construction firms managing international contractors. It simplifies contractor payments and ensures compliance with local labor laws.

Pros:

• Supports international payroll and contractor payments
• Automated tax compliance
• Easy integration with other business tools

Cons:

• Some users find Deel has a steep learning curve

8. Justworks

Justworks is a Professional Employer Organization (PEO) that provides payroll, benefits, and compliance services tailored to construction firms needing HR support.

Pros:

• Full-service payroll and compliance support
• Access to group benefits and HR services
• Automated tax filings

Cons:

• Limited integrations with third-party tools

9. UKG

UKG offers a comprehensive workforce management and payroll solution with advanced analytics and compliance tracking, making it ideal for large construction firms.

Pros:

• Advanced workforce analytics
• Strong compliance tracking tools
• Scalable for large organizations

Cons:

• Complex setup and higher cost

Must-have payroll features for construction businesses

Contractor payment automation

Construction businesses often rely on independent contractors. A payroll system should support automated payments, tax form generation, and compliance with contractor classification laws.

Certified payroll reporting

For government-funded projects, certified payroll reporting ensures compliance with prevailing wage laws and labor standards.

Multi-state and local tax compliance

Since construction firms operate in various locations, payroll software must automatically adjust for state and local tax requirements.

Mobile payroll access

Construction managers need access to payroll data on the go. A mobile-friendly payroll solution enables approvals, payment tracking, and real-time adjustments from job sites.

Seamless integration with accounting and project management

Construction payment software should sync with accounting and project management platforms to ensure accurate job costing and financial reporting.

Dedicated payroll support

Reliable customer support, combined with expertise in construction payroll services, is essential for handling complex wage calculations, tax filings, and compliance issues.

How to choose the best payroll software for construction

Choosing the right payroll software is crucial for managing compliance, labor costs, and efficiency in construction. Consider these key factors:

Ensuring compliance with labor regulations

Payroll software must facilitate compliance with federal, state, and local labor laws. Look for a system that automates tax filings, manages certified payroll reports, and ensures adherence to prevailing wage regulations.

Accurate job costing and budget management

Construction companies need payroll software with job costing features to allocate labor costs effectively. Choose a solution that integrates with accounting and project management tools to track payroll expenses per job.

Union reporting and certified payroll compliance

For companies working with unionized employees, it’s critical to have software that generates detailed union payroll reports and certified payroll documentation required for government contracts.

Efficient time tracking and workforce attendance

Time tracking integrations help businesses monitor employee hours, prevent payroll errors, and ensure accurate overtime calculations. Look for payroll software that syncs with mobile time-tracking apps for on-site workforce management.

Seamless integration with business systems

A payroll solution should integrate with existing construction software, such as accounting platforms and project management tools. This ensures smooth data transfer and reduces manual data entry errors.

Benefits of using payroll software for construction

Precision in time tracking

Automated payroll systems ensure accurate time tracking, reducing payroll errors and ensuring employees are compensated correctly for their work hours.

Streamlined compliance management

Payroll software automates reporting and filings, helping construction firms comply with tax laws, union regulations, and certified payroll requirements.

Efficient cost allocation

By integrating payroll with job costing tools, businesses can accurately allocate labor expenses to projects, improving budget management and financial forecasting.

Simplified and automated payroll processing

Automating payroll reduces administrative workload, minimizes errors, and ensures timely payments to employees and contractors.

Empowering employees with self-service tools

Self-service portals provide workers with easy access to pay stubs, tax documents, and payroll details, reducing the need for HR intervention.

Easily manage your construction company’s payroll with Rippling

Rippling is the best overall payroll solution for construction companies looking to streamline their payroll operations. It automates payroll processing, ensures compliance with multi-state and international regulations, and seamlessly integrates with accounting and project management tools.

With Rippling's payroll software, businesses can:

• Design customized approval workflows based on roles
• Track spending in conjunction with payroll across locations and functions
• Manage international payroll, issuing compensation in local currency while handling tax documentation

FAQs on construction payroll software

What is the best software for a construction company?

The best payroll software for a construction company depends on its specific needs. Options like Rippling, QuickBooks Payroll, and ADP are great choices due to their automation, compliance management, and job costing features.

How does payroll software handle union dues and benefits?

Payroll software automates deductions for union dues and manages benefit contributions. It ensures compliance with union agreements and regulatory requirements while streamlining reporting processes.

Is it possible to integrate payroll software with other construction management tools?

Yes, many payroll software solutions integrate seamlessly with construction management tools, accounting software, and time-tracking systems to ensure smooth payroll operations and accurate financial reporting.

This blog is based on information available to Rippling as of March 10, 2025.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.