Top 5 Payroll Software Solutions for Small General Contractors

Best Payroll Software Solutions for Contractors

Are you a small general contractor looking to grow and hire employees? If so, I am going to do a deep dive into the best payroll software options below to help you select the right one for your business! Managing payroll effectively is essential for ensuring accurate employee and subcontractor payments, staying compliant with regulations, and saving valuable time on bookkeeping tasks. Let’s explore the top payroll solutions tailored to your needs.

1. Gusto

If you’re looking for a user-friendly payroll solution that does it all, Gusto is a fantastic option. It automates payroll management, including tax filings, and offers tools to handle benefits like health insurance and retirement plans. Gusto’s intuitive dashboard also makes tracking time and managing contractor payments straightforward.

Notably, Gusto supports 1099 payments, making it easy to manage both employees and subcontractors. Pricing starts at $40 per month, plus $6 per person, making it an affordable and straightforward choice for small businesses. If simplicity and ease of use are your priorities, Gusto is definitely worth considering.

2. QuickBooks Payroll

For contractors already using QuickBooks for accounting, QuickBooks Payroll is an excellent choice. This software offers seamless integration with QuickBooks, automates payroll processes, and supports both 1099 contractors and W-2 employees. It also tracks workers’ compensation and generates 1099 forms at year-end, streamlining subcontractor payments.

QuickBooks Payroll starts at $45 per month, plus $4 per person. It’s ideal for those who want to combine payroll and accounting into one efficient system. One standout feature is how much time it saves during bookkeeping, especially with automated journal entries. This is a must-have if you’re looking for efficiency and a familiar tool.

3. Payroll4Construction

If you’re looking for a payroll solution specifically designed for the construction industry, Payroll4Construction is a strong contender. This software handles complex needs like managing multiple jobs, locations, unions, and varying pay rates.

It automates certified payroll reporting and prevailing wage rates, making it ideal for contractors working on government projects. Payroll4Construction simplifies subcontractor payments with 1099 tracking and reporting tools. Pricing is customized based on your business needs, but its industry-specific features make it a top choice for construction businesses with intricate payroll requirements.

4. ADP Payroll

ADP Payroll is a versatile option for businesses with more complex HR and payroll needs. It offers tools for managing union wages, benefits, and flexible payment options like direct deposit and pay cards. ADP’s contractor payment tools ensure 1099 subcontractors are paid accurately and on time, with automatic generation of necessary tax forms.

The software is scalable and includes employee self-service portals for easy access to pay stubs and tax documents. Pricing is quote-based and may be higher than other options, but its robust HR tools and excellent customer support make it a reliable choice for growing contractors.

5. eBacon

eBacon is designed with compliance in mind, making it ideal for contractors dealing with certified payroll requirements. This software automates payroll processing, certified reporting, and compliance management for prevailing wage and labor laws. It also includes features for streamlined subcontractor payments, such as 1099 generation and tracking.

Detailed reporting capabilities for audits and integration with time-tracking systems make eBacon a strong choice for contractors handling government contracts. Pricing is available upon request, and while it’s more focused on compliance than general payroll features, it’s a great fit for contractors needing specialized tools.

Conclusion

Choosing the best payroll software for your business depends on your specific needs, budget, and the complexity of your payroll processes. For small contractors seeking simplicity and affordability, Gusto and QuickBooks Payroll are excellent choices. Personally, I recommend these two because of their price points, ease of use, and time-saving features—especially QuickBooks Payroll, which integrates seamlessly into the bookkeeping process with automated journal entries.

If you need industry-specific features like certified payroll reporting, Payroll4Construction and eBacon are standout options tailored to the construction industry. Finally, ADP Payroll provides a comprehensive, scalable solution for contractors with more complex HR and payroll needs. Take advantage of free trials or demos to explore which solution works best for your business.

About Me

I’m Peyton Witt, a CPA and the owner of Tax Pilot, LLC. I specialize in helping tradespeople, contractors, and small business owners streamline their tax and bookkeeping processes. With years of experience and a passion for helping small businesses succeed, I can help you navigate your payroll and tax needs with ease.

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Payroll for Contractors