Construction & Contractor Payroll: The 2025 Guide (W-2/1099, Multi-State Crews, Job Costing)
- Pay W-2 employees and 1099 subs correctly; avoid misclassification.
- Tag by job, crew, location, and entity for clean reporting and cost tracking.
- We run payroll, file federal/state taxes, and e-deliver W-2/1099.
- Flat pricing: $50 + $7/emp (Full) or $40 + $6 (Basic) + $10/month per extra state.
- Typical onboarding: 5-7 business days after data handoff.
Construction payroll spans traveling crews, sub-contractor mixes, seasonal ramp-ups, and project-based reporting. This guide shows how to set up classification, handle multi-state work, and structure tags so job costing and compliance stay smooth-all at a predictable flat monthly price.
Classification: W-2 Employees vs 1099 Sub-Contractors
W-2 (field employees and staff)
Crew members on your schedule and direction are typically W-2. We handle overtime rules, differentials, and location tags.
1099 (true subs/vendors)
Use 1099 for independent businesses providing services under a contract. We generate 1099 e-delivery at year-end and keep vendor records tidy.
Mixed models & risk
If a worker toggles between roles, tag engagements by job and entity to keep reporting accurate and reduce audit risk.
Multi-State Crews & Traveling Work
- Add states for a flat $10/month each; we remind you about registrations/SUI.
- AI checks flag employees paid in a state without an active registration.
- Per-job location tags keep quarterlies and tie-outs straightforward.
Job/Crew/Location Tagging for Costing
- Tag hours and earnings by job, crew, cost code, location, or GC.
- Export summaries that align with job costing and project billing.
- Consolidated vs project-level views-your call.
Certified Payroll & Prevailing Wage (Exports)
- We provide exports to support certified payroll and prevailing wage tracking.
- Keep role/pay code mappings consistent; our checks verify before each run.
- Confirm specific agency forms/requirements with your compliance team.
Taxes, Filings, and Year-End
- Federal and state payroll filings (940/941, SUI, withholding) included.
- W-2 for employees; 1099 for subs with e-delivery (paper optional).
- Quarter-end reconciliations and pre-December W-2/1099 validations.
Time-Tracking & System Integrations
- Imports from common time tools; exports to accounting/BI.
- Job/crew/location tags flow through your downstream reports.
AI-Assisted Accuracy (Before Every Run)
- Flags outlier hours, rates, overtime, and per-diem patterns.
- Catches missing or stale state IDs when crews cross borders.
- Validates W-2/1099 outputs ahead of year-end.
Pricing & Timeline
- Full Payroll (CPA-reviewed): $50/month base + $7 per employee.
- Basic Payroll: $40 + $6.
- Extra states: $10/month each.
- Most contractors go live in 5-7 business days after data handoff.
Setup Checklist (Copy/Paste)
- Employee + sub roster (roles, rates, schedules)
- Banking + tax accounts; existing state IDs/SUI rates
- Prior quarter returns / YTD totals
- Job/crew/location tags; cost codes
- Any prevailing wage/certified payroll export specs
Serving Denver, Colorado 80203
We support contractors nationwide-including Denver, Colorado 80203-with multi-state crews, project tags, and accurate filings.
FAQs
Do you support both W-2 employees and 1099 subs?
Yes-W-2 and 1099 with e-delivery.
Can you handle crews crossing state lines?
Yes-flat add-on per extra state.
Do you file payroll taxes?
Yes-federal and state.
Any per-run fees?
No-flat monthly pricing.
Do you provide certified payroll exports?
Yes-exports to support certified payroll/prevailing wage tracking.
Need reliable payroll management?
Our payroll processing services make it easy to handle taxes, payments, and filings-so you can focus on your business.
Looking for straightforward payroll pricing?
Our plans start at $40/month base + $6 per employee/month, with no per-run fees. Get your first month of bookkeeping free when you sign up.
See Pricing.
Managing construction payroll? Our payroll services for contractors simplify job costing, prevailing wage compliance, and subcontractor payments-so you can focus on building.
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