Best Payroll and Time Tracking Setup for 10 to 50 Person Construction Crews

Running payroll for a construction crew is not the same as paying five office staff on salary.

You have people bouncing between jobsites, a mix of W2 and 1099, rain delays, overtime, and probably some paper time sheets that live in a truck door.

This guide is for owners and project managers with roughly 10 to 50 people on the books who want a simple, boring setup that works every pay period.

The problems that keep biting small crews

Most small construction companies start in one of these modes:

  • Manual spreadsheets and paper time sheets.
  • A basic payroll service with no real time tracking.
  • QuickBooks plus a stack of texts from foremen.

That leads to:

  • Missed hours or padded hours because time tracking is sloppy.
  • Extra admin time every pay period to clean up messy data.
  • Risky guessing on overtime, job costing, and taxes.

You do not need a giant ERP system to fix this. You just need each part of the stack to do its job.

The core stack for construction crews

You can think about your setup in three layers:

  1. Time tracking at the jobsite.
  2. Payroll that can handle W2, 1099, and multiple states.
  3. Accounting that keeps everything clean for tax time.

Here is a simple pattern that fits a lot of small construction companies.

1. Time tracking and job costing

You need something that makes it easy for crew members and foremen to clock in and out by job, not just by day.

Tools like TimeCamp and Connecteam are worth a serious look for this.

You want:

  • Mobile app that works even with weak signal.
  • Job or project codes so hours tie back to real work.
  • GPS or geofencing so you can confirm people are on site.
  • Simple reports you can export into payroll.

If a tool makes it hard for your least tech friendly worker to clock in, it will fail. Look for big buttons, clear labels, and as few steps as possible.

2. Payroll that can handle your mix of workers

Once you have clean time data, you need payroll that can:

  • Pay W2 employees and 1099 subcontractors.
  • Handle multiple states if your crews cross borders.
  • Deal with overtime rules without constant manual editing.

Systems like WebHR and Lano are built for more complex mixes of workers, including global hires in Lano’s case.

For a 10 to 50 person construction company, focus on:

  • How easy it is to import time data from your tracking tool.
  • How clearly it shows taxes, deductions, and net pay.
  • Whether support is used to hearing from small contractors, not just office managers.

If the vendor does not have a straight answer about multi state crews, keep moving.

3. Accounting that matches your reality

On the accounting side you want something that keeps invoices, bills, and payroll aligned without a lot of manual re typing.

Modern tools like Tyms aim to automate a lot of the grunt work. You can also run more traditional tools as long as they can sync with your payroll and bank feeds.

The key is:

  • Job costing. You want to see labor cost by project, not just in a giant lump.
  • Clean separation between materials, subs, and crew payroll.
  • Simple reporting for your tax preparer or accountant.

If your current setup makes you rebuild job cost reports by hand in a spreadsheet, that is a sign the accounting tool is not supporting you.

How to roll this out without chaos

Here is a simple sequence that many owners can follow in about thirty days.

  1. Pick your time tracking tool first.
    Test it with one or two crews for a week. Have foremen send you screenshots of their screens and ask what confuses them.

  2. Connect it to your payroll system.
    Start with a test run where you do not actually submit payroll. Check totals against your old method.

  3. Run one pay period with both systems.
    Yes, it is extra work for a short time. It lets you catch mistakes before they hit real checks.

  4. Turn off the old method.
    Once you are confident, stop accepting paper time sheets and side texts. One system only.

  5. Clean up the accounting side.
    After a month of clean payroll, sit down with whoever handles your books and wire job codes and categories so labor cost shows up in the right place.

When you should not switch yet

If you are behind on taxes, missing basic records, or in the middle of a big contract dispute, it may be smarter to stabilize first.

In that case:

  • Tighten up your current process for two or three pay periods.
  • Document how hours are collected and who signs off.
  • Fix obvious gaps like missing time sheets or unclear overtime rules.

Use that as the baseline for any new tools you try.

Switching while things are on fire just gives you two fires.

Best ways to track time for construction crews under 50

For crews of this size, time tracking needs to be straightforward and reliable. Your crew members are often on the move, so a mobile-friendly app that works offline is key. GPS or geofencing features help confirm workers are on site, reducing buddy punching or missed punches.

Consider these practical points:

  • Foremen should be able to quickly see who clocked in or out without digging through menus.
  • Crew members should be able to switch jobs easily if they move between sites in a day.
  • If your crew uses paper timesheets now, start by digitizing just one crew’s time to test the process.

Simple daily check-ins via app or text can replace the old paper stack and reduce errors. The goal is to get accurate hours tied to the right job with minimal hassle.

What payroll software works best for small construction crews?

The best payroll software for small crews handles your mix of W2 employees and 1099 subcontractors, supports multiple states if needed, and integrates smoothly with your time tracking system.

Look for these features:

  • Easy import of time data from your chosen tracking tool.
  • Clear breakdown of taxes, deductions, and net pay for each worker.
  • Support teams familiar with construction crews, not just office payroll.

If you want to learn more about managing both employee types, check out our guide on handling payroll with W2 employees and 1099 contractors.

How to set up construction payroll for small crews without headaches

Setting up payroll for a small crew means balancing accuracy with simplicity. Start by picking tools that fit your crew’s size and work style. Test each part separately before connecting them.

Key steps:

  • Choose a time tracking tool that your crew can actually use.
  • Pick payroll software that matches your worker mix and state rules.
  • Make sure accounting tools can handle job costing without extra manual work.

If you want tips on switching payroll systems without disrupting paychecks, see our guide to switching providers.

Why simple time tracking beats complex systems for crews under 50

For crews between 10 and 50 people, time tracking should not add complexity. Many owners try complicated systems that require constant training and troubleshooting. That wastes time and frustrates foremen.

Instead, pick a tool that:

  • Lets crew members clock in and out quickly with minimal steps.
  • Works offline or with spotty cell service.
  • Allows easy job or task switching during the day.
  • Provides clear, exportable reports for payroll.

For example, a roofing crew moving between two sites in a day needs to switch jobs fast. If the app makes them dig through menus or wait for GPS, they will resist using it. A simple interface with big buttons and clear job codes wins every time.

How to set up construction payroll for small crews: practical tips

Getting payroll right for small crews means matching your crew’s reality.

  • Confirm your payroll system can import time data directly from your tracking tool. Manual entry leads to errors.
  • Make sure it handles your mix of W2 employees and 1099 contractors without extra work.
  • Check that it supports overtime rules for your state(s) automatically.
  • Test with a dry run before going live to catch any issues.

If you run crews in multiple states, verify the payroll provider handles each state’s tax and reporting rules. If they hesitate or say it is complicated, look elsewhere.

Managing payroll compliance for small construction crews

Payroll compliance can feel like a moving target, especially when you have a mix of employees and contractors across different states. Staying compliant means:

  • Keeping accurate records of hours worked and payments made.
  • Applying the right tax rates and withholding amounts for each worker.
  • Following overtime and labor laws specific to your state or locality.
  • Filing payroll taxes and reports on time to avoid penalties.

Many payroll systems designed for small construction crews automate much of this work. They update tax tables regularly and generate reports you can file directly or share with your accountant. For crews crossing state lines, make sure your software handles multi state tax rules without manual overrides.

Simple time tracking methods that work for crews under 50

For crews under 50, the best time tracking methods are those that fit your crew’s daily rhythm without slowing them down. Consider these approaches:

  • Mobile apps with offline mode so workers can clock in even with poor signal.
  • Foremen using a tablet or phone to check crew members in and out at the site.
  • Job codes or task selectors that let workers switch jobs during the day without confusion.
  • Automated reminders via text or app notifications to reduce missed punches.

Avoid complicated punch card systems or desktop-only software. Your crew is on the move, and you need a system that moves with them. Starting small, like digitizing one crew’s time, helps iron out issues before full rollout.

How to set up construction payroll for small crews the smart way

Setting up payroll for a small construction crew involves more than just picking software. It means tailoring your processes to match how your crews work day to day.

Start by mapping out your crew’s typical work pattern:

  • Do workers move between jobsites during the day?
  • How many are W2 employees versus 1099 contractors?
  • Are your crews crossing state lines regularly?

Use these answers to choose tools that fit those realities. For example, if your crews often switch jobs, your time tracking needs to handle multiple job codes per day without confusion. If you have a mix of worker types, your payroll system must handle both without extra manual work.

Test each tool separately before connecting them. Run dry runs of payroll with your new time tracking data to catch errors early. This staged approach saves headaches and keeps paychecks accurate.

Why mobile-friendly time tracking is a must for crews under 50

Crews under 50 often work in the field with spotty cell service and changing jobsites. A mobile-friendly time tracking app that works offline is essential.

Consider this scenario: A small electrical crew moves between three sites in one day. They need to clock in and out quickly without waiting for GPS or network. A good app lets them switch jobs with a tap and records their location when possible.

Foremen should be able to see who’s clocked in without scrolling through complicated menus. Automated reminders reduce missed punches and keep data clean.

Choosing the right mobile time tracking tool reduces errors, saves admin time, and keeps your crew focused on the job.

How to set up construction payroll for small crews: a straightforward approach

Setting up payroll for a 10 to 50 person construction crew means focusing on practical steps that fit your crew’s size and work patterns. Start by choosing a time tracking tool that your crew can easily use on the jobsite. Make sure it supports multiple job codes and works offline if needed.

Next, pick payroll software that handles your mix of W2 employees and 1099 contractors, supports overtime rules for your state or states, and can import time data directly from your tracking tool. This avoids manual entry errors and saves time.

Finally, integrate accounting tools that can automate job costing and keep your books clean without extra manual work.

Test each part separately before going live. Run a dry payroll with your new system to catch errors early. This staged rollout reduces headaches and keeps paychecks accurate.

Best time tracking methods for construction crews under 50

For crews under 50, the best time tracking methods focus on ease of use and reliability. Your crew is on the move, so a mobile app with offline capabilities is essential. Features like GPS or geofencing help confirm workers are on site without slowing them down.

Foremen should be able to quickly check who is clocked in and out without digging through menus. Crew members need to switch jobs easily if they move between sites during the day.

Start by digitizing time tracking for one crew to test the process. Use simple daily check-ins via app or text to replace paper timesheets and reduce errors. The goal is accurate hours tied to the right job with minimal hassle.

How to set up construction payroll for small crews: key considerations

Setting up payroll for a small construction crew means matching your tools and processes to your crew’s size and work style. Here are some key considerations:

  • Worker types: Know how many are W2 employees versus 1099 contractors. Your payroll system must handle both smoothly.
  • Jobsite movement: If your crew moves between multiple jobs in a day, your time tracking must support multiple job codes per shift.
  • State rules: If you work across state lines, your payroll software must handle multi state tax and reporting rules automatically.
  • Integration: Choose payroll and accounting tools that integrate well with your time tracking system to avoid manual data entry.
  • Testing: Run dry runs of payroll with your new setup before going live to catch errors early.

This approach helps avoid surprises and keeps paychecks accurate, saving you time and headaches.

Why a simple, integrated stack beats piecing together tools

Many small construction companies try to patch together spreadsheets, paper timesheets, and different software. This often leads to errors, missed hours, and extra admin work.

Instead, focus on a simple, integrated stack that fits your crew’s size and work style. Time tracking, payroll, and accounting should talk to each other and reduce manual work.

For example, a foreman can clock crew hours by job on a mobile app, those hours flow directly into payroll for accurate pay and tax calculations, and job costing updates automatically in accounting. This saves time and reduces errors.

If you want to explore how automation can help, check out our article on using AI accounting tools for small crews.

How to set up construction payroll for small crews: a simple, step-by-step plan

Setting up payroll for a 10 to 50 person construction crew can feel overwhelming. Breaking it down into clear steps helps keep things manageable and avoids mistakes.

  1. Assess your crew’s makeup and work patterns.
    Identify how many workers are W2 employees versus 1099 contractors, and whether your crews cross state lines or move between multiple jobs in a day.

  2. Choose a time tracking tool that fits your crew.
    Pick one that works offline, supports multiple job codes, and is easy for your least tech-savvy workers.

  3. Select payroll software that handles your worker mix and state rules.
    Make sure it can import time data directly from your tracking tool to avoid manual entry errors.

  4. Test each system separately.
    Run a trial week or pay period with your time tracking tool, then a dry run of payroll using that data.

  5. Integrate accounting tools that automate job costing.
    This keeps your books clean and saves time during tax season.

  6. Roll out the new system gradually.
    Start with one crew or jobsite, then expand once you’re confident everything works smoothly.

This approach reduces headaches and keeps paychecks accurate. It also gives you time to train foremen and crew members without disrupting pay periods.

Common questions from owners

How often should I run payroll for a small construction crew?

Most small crews run payroll every two weeks or monthly. Biweekly pay periods help keep workers happy and make overtime calculations easier. Monthly pay can work if your crew is stable and you have good time tracking in place.

Can I integrate time tracking with payroll for my construction crew?

Yes. The best setups let you export or sync time data directly into payroll. This reduces errors and saves admin time. Make sure your time tracking tool and payroll system support compatible file formats or direct integrations.

What payroll taxes do small construction businesses pay?

Payroll taxes depend on worker type, location, and pay frequency. W2 employees have Social Security, Medicare, and unemployment taxes withheld. 1099 contractors handle their own taxes, but you still report payments. Payroll software usually automates these calculations based on worker classification and state rules.

How do I handle payroll compliance for my small construction crew?

Handling payroll compliance means keeping accurate records, applying correct tax rates, and filing reports on time. Using payroll software designed for small crews can automate much of this work and help you avoid penalties.

What payroll features are essential for small construction crews?

Essential payroll features include easy import of time data from your tracking tool, support for both W2 employees and 1099 contractors, automatic handling of overtime rules for your state(s), and clear reporting for taxes and deductions. Good customer support familiar with construction crews is also important.

If you want help mapping this pattern to your exact crew size and mix of workers, keep an eye on the next guides on Payroll for Crews. We will go deeper into multi state payroll and certified payroll for public jobs.