If you run a construction company, there’s one part of your business that can quietly drain your profits faster than bad estimates, late-paying clients, or rising material costs.
Payroll mistakes.
They aren’t exciting. Nobody brags about payroll. But payroll errors are expensive, time-consuming, and reputation-damaging. I’ve watched contractors lose thousands because a payroll provider filed taxes incorrectly. I’ve seen employees walk off the job after a single missed paycheck. I’ve watched owners waste entire weeks fixing problems that never should’ve happened.
Choosing the right payroll software isn’t optional in construction. It’s survival.
So in this article, I’m breaking down the four most common payroll systems construction companies ask me about: Gusto, QuickBooks Payroll, Paychex, and ADP.
I’ll tell you which ones work, which ones don’t, and which one I recommend every single time.
By the end, you’ll understand why choosing the wrong payroll provider can cost you far more than the subscription fee.
Payroll software isn’t just “paying your people.”
Payroll is compliance. Payroll is legal protection. Payroll is accuracy. Payroll is trust.
When payroll goes wrong, it hits you in three painful places:
If your payroll provider files a form incorrectly, you’re the one who gets the penalty. One of my clients had payroll taxes filed less than five days late. The penalty? Over three thousand dollars.
Construction workers put in physical, demanding labor. Getting paid correctly and on time isn’t optional. It’s respect. Two payroll mistakes are usually all it takes for them to question the leadership and start looking for another job.
When payroll breaks, your entire week disappears into phone calls, corrections, and damage control. Projects slow down, morale drops, and your stress skyrockets.
This is why the payroll system you choose matters more than most financial decisions you’ll make this year.
Gusto is extremely popular among small businesses because it’s clean, modern, and easy to use. But simplicity comes at a cost when you’re in construction.
Here’s where Gusto falls apart:
• A history of tax filing errors
I’ve seen clients receive IRS penalties because Gusto filed incorrect numbers or missed state filings entirely.
• Slow and inconsistent support
When something breaks, getting help is slow. Sometimes days slow.
• Not built for construction complexity
Gusto struggles with certified payroll, multi-state employees, job costing, unions, and anything outside the basic payroll workflow.
Bottom line:
Great for simple office environments. Too risky for construction companies.
Contractors often choose QuickBooks Payroll because they already use QuickBooks Online. On paper, it makes sense.
In practice? Not so much.
• Frequent glitches
I’ve seen paychecks fail, deposits get stuck, taxes calculate incorrectly, and stubs generate wrong totals. One client had payroll fail on payday and none of his employees were paid. It was a disaster.
• Slow, unhelpful customer service
You submit a “case” and hope someone eventually calls back. It’s brutal when your team needs to be paid now.
• Lots of hidden fees
Everything costs extra, from 1099s to same-day deposits.
• Integration is not a good enough reason
Every major payroll provider integrates with QuickBooks anyway.
Bottom line:
Overhyped and unreliable. Not recommended for construction payroll.
Paychex has been around for decades, but legacy doesn’t equal quality.
• Expensive, confusing pricing
Setup fees, quarterly fees, W-2 fees, multi-state fees, year-end fees. It stacks up.
• Outdated interface
Your team will struggle with it. It feels clunky and outdated.
• Sales-heavy approach
You can’t see pricing online. You have to talk to a sales rep, and the upselling is real.
The only real benefit is having a dedicated support rep — but that alone doesn’t justify the cost or the headaches.
Bottom line:
Not the best value for construction companies unless you have a very niche situation.
Now we get to the system I trust the most: ADP.
It’s not the cheapest or trendiest option. But it’s the most accurate, most reliable, and most construction-friendly payroll system available.
Here’s why:
This alone saves contractors thousands. Their accuracy is miles ahead of Gusto and QuickBooks Payroll.
It handles certified payroll, prevailing wage, unions, multi-state workers, job costing, and workers’ comp integration without breaking.
You get a real account manager, not a chatbot.
You run payroll. Payroll runs. Employees get paid. Taxes get filed. No surprises.
A three thousand dollar penalty or a lost employee is far more expensive than ADP’s subscription.
I can connect you with my ADP partner for better pricing than you’d get on your own.
Bottom line:
For construction companies with more than three employees, ADP is the clear winner.
Here’s the quick breakdown:
If you have 3+ employees:
Choose ADP.
If you have union workers or prevailing wage:
Choose ADP, no question.
If you’re a one-man operation with helpers:
Gusto can work, but monitor filings carefully.
If your accountant recommends QuickBooks Payroll:
Say no. You’re the one who runs payroll, not them.
If Paychex offers a “deal”:
Read the contract twice. The surprise fees are real.
Payroll shouldn’t keep you up at night.
The right payroll software protects your business, keeps your team paid, and gives you peace of mind.
If you want help choosing or setting up your payroll system the right way for construction, reach out.
Your numbers matter, and the right system makes all the difference.
