Paychex Payroll Review for Construction Businesses: Pros, Cons & Alternatives

Paychex processes payroll for thousands of businesses across multiple industries, but how well does it handle construction’s unique challenges? This review examines Paychex’s capabilities specifically through a contractor’s lens.

What is Paychex?

Paychex is a payroll and workforce management provider that has been operating since 1971. The company offers HR services, payroll processing, tax filing, benefits administration and business outsourcing services.

While Paychex serves various industries, including construction and skilled trades through their industry-specific solutions, they’re not exclusively construction-focused. Their platform is designed for general business use across multiple sectors with industry-specific add-ons.

Paychex Payroll Features for Commercial Businesses

The Paychex workforce management platform is designed to handle employee administration, regulatory compliance and cost tracking across diverse business environments.

Here’s how these features work:

#1: Payroll Processing

Paychex offers payroll services through their Paychex Flex platform, which is built to serve businesses of different sizes. The platform processes payroll through several features:

• Online payroll processing from desktops or mobile devices
• Payroll tax calculations and automatic payments through Taxpay service
• Federal and state compliance support
• Direct deposit, paper check, pay card and tip disbursement options
• Garnishment processing and remittance to appropriate agencies

The system handles gross pay calculations, deduction processing and tax filing. Paychex also offers flexible payment options, including Real-Time Payments for same-day processing and Same-Day ACH for next business day payments.

For construction and skilled trades businesses specifically, Paychex offers tools to help manage contractor payments through 1099 payment services, which aim to ensure accurate, timely payments and simplified tax compliance.

#2: Time Tracking and Labor Management

Paychex provides time and attendance tools that integrate with their payroll system:

• Touchless clocking solutions through the Paychex Flex app
• Employee self-service time entry
• Schedule management and shift swapping capabilities
• Overtime alerts and monitoring
• Labor cost segmentation by department or project

The platform offers two tiers of time tracking: Paychex Flex Time Essentials with standard features and Paychex Flex Time with the full suite, including advanced scheduling tools.

#3: HR and Compliance Management

Beyond payroll processing, Paychex provides HR management tools, including:

• Employee onboarding with paperless, digital workflows
• Talent management, including applicant tracking and hiring tools
• Benefits administration with retirement plan options and health insurance
• Compliance services for changing employment regulations
• Electronic OSHA report generation
• Company handbook builder with federal and state policy templates
• New hire reporting for state requirements

The platform includes an HR Library that stays updated on employment regulations to help businesses navigate legislative changes.

#4: Integration Capabilities

Paychex offers software integrations through their API and marketplace connections:

• Integrations with accounting software, including QuickBooks® and Xero
• Connections with HR platforms like BambooHR and Zenefits
• Time tracking integrations, including When I Work and Hubstaff
• Job board integrations with Indeed and other platforms
• Benefits administration platform connections

The integration capabilities allow data sharing across multiple business systems to reduce manual entry.

#5: Service Package Structure

Paychex structures their technology offerings around three distinct platform tiers, each designed for different business sizes and needs:

Paychex Flex Select:

• In-platform training and help center support
• Employee training and development system
• Online payroll processing and tax filing
• Flexible support options available

Paychex Flex Pro:

• Payroll setup and processing with assigned specialist support
• Robust HR software and handbook tools
• Multi-channel support, including phone and email
• Additional flexible support options

Paychex Flex Enterprise:

• Scalable payroll and HR solutions with custom analytics
• Hiring and onboarding capabilities
• Payroll and tax filing assistance
• Assigned account manager for business needs

Each tier allows businesses to customize their service package by adding features such as expense management, background screening, performance management, learning management systems and more. Pricing is customized based on specific business needs, with base payroll processing reported to start around $39-$45 per month plus $4-$5 per employee.

Ratings and Reviews

Here’s what users have said about their experiences with Paychex payroll services:

What Paychex Offers Construction Businesses

Paychex provides payroll and HR solutions with broad industry coverage and multiple service tiers. The platform offers:

• Payroll processing with tax compliance across federal and state levels
• Time tracking and attendance management with mobile capabilities
• Multiple service packages from basic payroll to comprehensive HR suites
• Integration capabilities with existing business systems
• Industry-specific solutions for construction and skilled trades
• 1099 contractor payment services
• Workers’ compensation support and insurance options

The service works for businesses needing payroll and HR management across multiple locations.

That said, companies should carefully evaluate whether the multi-industry approach provided by Paychex meets specialized construction payroll requirements, particularly for complex scenarios involving prevailing wages, union reporting and certified payroll compliance.

Construction businesses with these specialized needs may benefit from exploring providers that focus exclusively on construction payroll challenges.

Payroll4Construction: Specialized Construction Payroll Solutions

Payroll4Construction provides payroll services built exclusively for contractors, helping construction businesses overcome union rules, prevailing wage and certified reporting challenges.

Construction Industry-Specific Payroll Features

Unlike general payroll providers, Payroll4Construction is designed to help contractors handle the complex requirements that construction companies face daily:

• Union Payroll: Manages union contracts, calculates benefit contributions and processes complex reporting requirements specific to construction trades
• Prevailing Wage Rates: Automated compliance tracking for government contract work with real-time rate updates, ensuring Davis-Bacon Act compliance
• Multi-State Processing: Seamless payroll processing for construction crews working across state lines with proper tax compliance
• Certified Payroll Reporting: Automated generation of Form WH-347 and other certified payroll reports for Department of Labor (DOL) compliance
• Construction Compliance: Comprehensive regulatory compliance designed specifically for the construction industry

Advanced Integration and Project Support

The platform integrates with accounting, HR and time tracking systems for complete construction workforce management:

• Accounting System Integrations: Connects with popular construction accounting software for seamless data flow
• Time Tracking Integrations: Links with field time collection apps and systems
• HR Management Integrations: eliminate double entry by sharing employee and job data between platforms

Dedicated Construction Industry Support

Payroll4Construction is designed to help contractors with specialized support services, including:

• In-house Construction Payroll Specialists: Support team with deep construction industry knowledge and experience
• Industry-Specific Implementation: Guided setup designed specifically for construction business workflows

How Contractors Can Choose the Best Payroll Solution

The right solution doesn’t just process paychecks. It provides visibility into your operations, helps control project costs, ensures compliance with complex regulations and improves overall project management capabilities.

Before choosing a payroll provider, ask yourself:

• Does the provider specialize in construction or offer it as a general add-on?
• Can the system handle complex union requirements and benefit calculations?
• Does the platform provide project-based cost tracking and reporting?
• Are prevailing wage and certified payroll capabilities built-in or additional services?
• Does the provider offer construction industry expertise or general business support?
• Can they handle Davis-Bacon Act compliance and Form WH-347 reporting?
• What level of automation does the system provide for compliance reporting?

If you’d like to explore how specialized construction payroll services could benefit your construction company, Payroll4Construction experts are ready to help you find the perfect fit for your unique requirements.

The Payroll4Construction Difference

Contractors comparing Paychex and Payroll4Construction can see how a construction-specialized provider simplifies compliance and payroll management. The reporting and wage tracking are built into the system and make jobsite payroll easier than ever.

Frequently Asked Questions

What Are The Pros And Cons Of Using Paychex?

Pros: Paychex offers comprehensive payroll and HR services with extensive integration capabilities, multiple service tiers and broad industry coverage. The platform provides automated tax filing, flexible payment options and scalable solutions that can grow with businesses.

Cons: Paychex’s construction features are add-ons to their multi-industry platform rather than purpose-built solutions. This can create complexity when handling construction-specific requirements like prevailing wages, union reporting and certified payroll. Pricing can be difficult to predict as it varies based on features selected and customization needs.

Which Is Better For Construction Payroll, Paychex Or Payroll4Construction?

For construction businesses, Payroll4Construction offers significant advantages because it’s built exclusively for contractors.

While Paychex provides construction features as add-ons to their general platform, Payroll4Construction specializes in union payroll, prevailing wages, certified payroll reporting and construction compliance from the ground up.

What Should Construction Businesses Look For In A Payroll Provider?

Construction businesses should prioritize providers that offer:

• Built-in prevailing wage compliance
• Union payroll capabilities
• Certified payroll reporting (Form WH-347)
• Multi-state processing
• Project-based cost tracking
• Dedicated construction industry support

The provider should understand Davis-Bacon Act requirements and state prevailing wage laws.

What Makes Payroll4Construction Different From Paychex?

Payroll4Construction is designed exclusively for construction companies, offering specialized features like:

• Automated prevailing wage compliance
• Complex union reporting
• Dedicated construction industry support
• Purpose-built certified payroll tools

Unlike Paychex’s general platform with construction add-ons, every feature in Payroll4Construction is built specifically for contractors’ unique needs.