W-2 employees vs 1099 subcontractors
Construction companies often have both W-2 field and office employees and 1099 subcontractors. Your payroll system should handle both in one place—correct withholding for W-2, no withholding for 1099, and the right tax forms (W-2 vs 1099-NEC) at year-end. Contractor self-service portals let subs view pay stubs and documents without extra admin work.
Certified payroll and prevailing wage
If you do public or prevailing-wage work, you may need certified payroll reporting (e.g. WH-347). Many general-purpose payroll tools don't build this in; you may use a dedicated certified payroll add-on or service. For typical commercial or residential work without prevailing-wage requirements, the picks on this page cover payroll and job costing well.
Multi-job-site payroll and labor allocation
When labor works across multiple jobs or job sites, you need to allocate hours and cost by job for accurate job costing and reporting. QuickBooks Payroll does this natively—hours and labor cost post to the jobs you assign. Gusto and OnPay sync to QuickBooks but don't push cost to jobs the same way; they're still strong for running payroll and tracking who worked where if you use time tracking or manual allocation.
Labor cost tracking and job costing
Construction accounting relies on labor cost by job. If you run your books in QuickBooks, payroll that posts labor to jobs (QuickBooks Payroll) keeps job costing accurate without re-entry. If you use another accounting system, choose payroll that exports or syncs in a way you can map to jobs or cost codes.
Time tracking and payroll sync
Field time can be captured with time clocks, mobile apps, or manual entry. The best setup syncs hours into payroll so you're not re-entering data. Gusto has built-in time tracking; QuickBooks Payroll integrates with QuickBooks Time for time-by-job. Accurate hours also support job costing and overtime compliance.
Tax forms and contractor payments
1099 subcontractors need 1099-NEC at year-end. Confirm your payroll provider includes 1099 runs and e-file without per-form fees. Running contractor payments through the same system as W-2 payroll keeps one record of all payments and simplifies reporting.
Ease of use for office managers and small operations
Construction offices often have one person or a small team running payroll. Choose software that's straightforward to set up and run—published pricing, no long sales cycle, and support when you need it. Gusto and OnPay are built for self-serve; QuickBooks Payroll fits if you already live in QuickBooks; ADP offers dedicated support when you're ready for it.