--- title: "Payroll processing support for construction companies & contractors" description: "Payroll processing support for construction companies & contractors: payroll processing under your authority in Gusto, ADP, Paychex, QuickBooks Payroll." url: https://ledgerbpo.com/industries/construction/payroll-support/ updated: 2026-09-11 publisher: LedgerBPO (SS Support Network LLC) language: en-US --- # Payroll processing support for construction companies & contractors Payroll processing for construction companies & contractors carries rules most industries never meet: prevailing wage on public work, certified payroll reports such as WH-347, union fringe benefits, multi-state crews and workers' compensation rates by class code. Your accountant collects approved timesheets by job and cost code, prepares the payroll inputs for Gusto, ADP or your provider, and posts the payroll journal with labor burden allocated to each job. - Since 2020 - US · UK · CA · AU - Named accountant plus backup - Your software, no lock-in [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Updated September 2026 ## How it runs for construction companies and contractors Weekly certified payroll reports are prepared from the same data. Workers' compensation audits are supported with payroll by class code and state. You approve every run; we prepare, check and post. ## What is payroll processing outsourcing? Payroll processing outsourcing means a remote team prepares each pay run inside your payroll software: reconciling hours, entering changes, checking deductions and producing the run for the employer to approve. The employer keeps the payroll account, the bank authority and the legal responsibility. The provider posts the payroll journal and reconciles it, so payroll and the books agree. ## What we handle for construction companies and contractors - Timesheets collected by job, cost code and work classification - Prevailing-wage rates applied and certified payroll reports prepared weekly - Union fringes and dues tracked per agreement and remitted on schedule - Labor burden allocated to jobs in the payroll journal - Workers' compensation audit workpapers by class code and state ## The KPI that matters here Payroll journal posted with job allocation within 1 business day of each pay run. ## Construction compliance notes ### Sales tax on materials In most US states a contractor pays sales tax on materials at purchase and does not charge tax on the finished job. A few states, including Arizona and Washington, tax the contract itself, and many states have separate rules for repair work versus new construction. We set up tax codes per state and contract type and track exempt purchases with resale or project certificates on file. ### Retainage Retainage withheld by owners is recorded as retainage receivable, and retainage you withhold from subcontractors is recorded as retainage payable. Several states cap retainage on public work, commonly at 5%, and set release deadlines after completion. We track the release date per contract so closeout billing goes out on time. ### Job costing and WIP Bonding companies and lenders expect a work-in-progress schedule that ties to the general ledger, with contract value, costs to date, estimated cost to complete and billings to date. We maintain the schedule monthly and book over and under billing entries so the P&L reflects percentage of completion. ### CIS in the UK Under the Construction Industry Scheme, UK contractors deduct 20% from registered subcontractors and 30% from unregistered ones, and file a monthly CIS return with HMRC. We verify subcontractors, prepare the deduction statements and CIS return workings, and reconcile deductions suffered against your PAYE liability. Your accountant or the business submits the return. ## Construction software we work in - [QuickBooks Online](https://ledgerbpo.com/software/quickbooks-online/) - [QuickBooks Desktop](https://ledgerbpo.com/software/quickbooks-desktop/) - [Xero](https://ledgerbpo.com/software/xero/) - [Bill.com](https://ledgerbpo.com/software/bill-com/) - [Gusto](https://ledgerbpo.com/software/gusto/) - [Sage 50](https://ledgerbpo.com/software/sage-50/) - Buildertrend - Procore - [All 50 platforms](https://ledgerbpo.com/software/) ## More for construction companies and contractors Other services for construction - [Bookkeeping](https://ledgerbpo.com/industries/construction/bookkeeping/) - [Invoicing and billing](https://ledgerbpo.com/industries/construction/invoicing-and-billing/) - [Accounts receivable](https://ledgerbpo.com/industries/construction/accounts-receivable/) - [Accounts payable](https://ledgerbpo.com/industries/construction/accounts-payable/) - [Bank reconciliation](https://ledgerbpo.com/industries/construction/bank-reconciliation/) - [Month-end close](https://ledgerbpo.com/industries/construction/month-end-close/) - [All construction services](https://ledgerbpo.com/industries/construction/) Payroll support in other industries - [Marketing agencies & consultancies](https://ledgerbpo.com/industries/agencies/payroll-support/) - [Auto repair shops & dealerships](https://ledgerbpo.com/industries/auto/payroll-support/) - [Behavioral health practices](https://ledgerbpo.com/industries/behavioral-health/payroll-support/) - [Daycares, schools & education](https://ledgerbpo.com/industries/childcare-education/payroll-support/) - [The full payroll support page](https://ledgerbpo.com/services/payroll-support/) ## Frequently asked questions ### Do you prepare certified payroll reports? Yes, we prepare weekly certified payroll reports from approved timesheets, including hours by classification, prevailing-wage rates and fringe payments, in the WH-347 format or the format your state agency requires. The reports are prepared for your signature and submission. We do not sign or submit them on your behalf. ### How do you handle crews working in more than one state? Each employee's hours are tracked by work location so state withholding, unemployment and workers' compensation are calculated where the work is performed. Reciprocity agreements between states are noted on the employee record. The payroll provider processes the run; our accountant prepares the inputs and reconciles the tax filings. ### Can you support union payroll? Yes, union agreements are set up with their wage scales, fringe rates and dues, and hours are reported by classification. Fringe contributions are accrued per job and remittance reports are prepared for each fund on its schedule. The same records support union audits and job cost reports, and any variance is listed for your review. Next step ## Books closed. Invoices paid. Every month. Tell us what is going on with your books or billing. You will hear from a named person within 1 business day, with a custom quote and a plan for the first close. - Reply from a named person within 1 business day - No setup fee, month-to-month - Your software, your data, no lock-in Start with a custom quote [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Or call [+1-657-777-0006](tel:+16577770006) during US, UK or Australian business hours. --- Source: https://ledgerbpo.com/industries/construction/payroll-support/ · Contact: https://ledgerbpo.com/contact/ · Full site map for agents: https://ledgerbpo.com/llms.txt