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

Lumber is a cloud-based workforce management platform designed specifically for construction contractors, but how does it compare to other construction payroll solutions? This review examines Lumber’s capabilities through a contractor’s lens.

What is Lumber?

Lumber is a payroll and workforce management platform that has been operating since 2023. The company offers payroll, HR, time tracking, scheduling and compliance services specifically designed for the construction industry.

Unlike general business payroll providers, Lumber focuses exclusively on construction contractors, subcontractors and specialty contractors. Their platform is built from the ground up with AI-powered tools to handle construction-specific requirements, including prevailing wage, certified payroll and union compliance.

Lumber Payroll Features for Construction Businesses

Lumber provides an integrated suite of workforce management capabilities that address challenges construction contractors face with employee administration, regulatory compliance and cost tracking.

Here’s how these features work:

#1: Payroll Processing

Lumber offers payroll services built specifically for construction contractors. The platform processes payroll through several features:

• AI-powered online payroll processing from desktop and mobile devices
• Automatic payroll tax calculations and filings across all states
• Federal, state and local tax compliance support
• Next-day direct deposit options
• Multi-state payroll processing capabilities

The system handles gross pay calculations, deduction processing and tax filing. Lumber’s payroll processing is designed to integrate directly with time tracking data, aiming to eliminate manual data entry and reduce processing time.

According to the company, their AI-powered payroll engine can process complex calculations that traditionally take 20 hours per week in approximately 30 minutes.

#2: Construction Compliance Features

Lumber provides compliance tools built specifically for construction requirements:

• Prevailing Wage Management: Automated calculations for prevailing wage rates with fringe benefit tracking
• Certified Payroll Reporting: Digital generation of WH-347 and state-specific formats for government requirements
• Union Payroll: Processing for union rates, dues, deductions and reporting requirements, including reciprocity agreements
• Multi-State Tax Compliance: Monitors tax rules for crews working across state lines
• Workers’ Compensation Documentation: Reports available for government agencies

The platform includes LumberAI Track, which scans payroll data in real time to detect anomalies such as expired pay rates, missing prevailing wages and incomplete union configurations.

#3: Time Tracking and Field Operations

Lumber’s time tracking system connects directly with payroll processing and includes:

• Mobile app for field workers to clock in and out from jobsites
• GPS tracking and geo-fencing to monitor employee locations during shifts
• Supervisor-level timesheet creation and approval workflows
• Real-time visibility into labor costs by project
• Activity tracking and cost code assignment
• Equipment tracking and management capabilities
• Photo documentation from the field
• Production tracking features
• Schedule management tools

The time tracking system connects each hour worked to specific projects and cost codes, providing job costing data that flows directly into payroll processing.

#4: Integrations and Job Costing

Lumber offers integration capabilities with construction accounting and ERP systems:

• Integrations with Sage 100 Contractor, Sage 300 CRE, Sage Intacct and Acumatica
• Integration with QuickBooks® for smaller businesses
• Real-time API data sync for projects, cost codes, employees and general ledger accounts
• REST API for custom integrations
• ServiceTitan integration for field service management

The platform provides bi-directional data flow, syncing company records, employee data, project locations, tasks and cost codes between systems.

#5: HR and Workforce Management

Beyond payroll and time tracking, Lumber provides additional workforce management tools:

• Applicant tracking system for construction-specific hiring
• Employee onboarding with digital workflows
• Benefits administration and management
• Expense management and reimbursements
• Per diem tracking capabilities
• Credential management through integrated BuilderFax technology
• Safety monitoring and compliance features

These features are designed to work together within a single platform, reducing the need for multiple disconnected systems.

#6: Service and Support Structure

Lumber provides support through a US-based team:

• Hands-on onboarding and implementation support
• Training for team members
• Support via phone, email or in-app chat
• White glove concierge service from construction industry experts
• Comprehensive resource library with video tutorials

Implementation timelines are reported to be approximately 1-2 weeks for most construction companies.

What Lumber Offers Construction Businesses

Lumber provides a construction-focused workforce management platform with integrated capabilities. The platform offers:

• Payroll processing with tax compliance built for construction-specific requirements
• AI-powered automation designed to reduce processing time
• Prevailing wage and certified payroll capabilities for government contract work
• Time tracking integrated with payroll and job costing
• Multi-state payroll processing with automatic compliance
• Union payroll support with reporting capabilities
• Field operations tools including equipment tracking and production management
• Expense management integrated with payroll processing
• Integration capabilities with construction accounting and ERP software
• Modular approach allowing businesses to select specific features

Lumber’s all-in-one platform consolidates workforce management functions within a single system, which can streamline operations for contractors who prefer unified software solutions.

However, contractors should note some key considerations when evaluating Lumber:

• Self-service software model: Lumber provides software that businesses use themselves to manage payroll and workforce functions, rather than offering full-service payroll processing where experts handle operations on your behalf
  • This requires businesses to invest time in learning and managing the system
• Newer market presence: As a company founded in 2023, Lumber has less established market presence compared to providers with decades of construction payroll experience
  • Platform maturity: As a relatively recent entrant to the construction payroll space, some features and capabilities may still be evolving
• Limited third-party integrations: While Lumber offers integrations with major accounting platforms, the platform has fewer connections with specialized construction software partners that contractors often rely on
• Self-service setup model: The platform emphasizes automation and self-service features, which may require businesses to invest time in learning the system and managing their own configurations
• Reporting: Lumber’s reporting capabilities appear focused primarily on payroll and compliance documents, with limited general construction business reporting compared to more established platforms

Companies should carefully evaluate whether Lumber’s platform capabilities and implementation approach match their specific needs, particularly for established businesses with complex existing workflows and specialized compliance requirements.

Alternative Construction Payroll Solution: Payroll4Construction

Payroll4Construction is a full-service payroll provider built exclusively for contractors.
This specialized approach helps construction businesses overcome union tracking, prevailing wage compliance and certified payroll reporting challenges.

Construction Industry-Specific Payroll Features

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 Payroll 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 in multiple formats for Department of Labor (DOL) compliance, available in both electronic submission and print formats
  • Electronic submission capabilities: This includes eMars, DIR and LCP Tracker for specialized compliance requirements
• Davis-Bacon Compliance at the State Level: Built-in compliance with varying state prevailing wage requirements
• Construction Reporting & Compliance: Access detailed payroll reports, job costing analytics and labor distribution summaries to track project profitability and workforce allocation
  • The platform also handles regulatory compliance requirements specific to construction, including EEO/Minority compliance support for equal employment opportunity reporting, workers’ compensation reporting and other industry-mandated documentation to keep your business audit-ready

Advanced Integrations and Project Support

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

• Accounting: Connects with popular construction accounting software, including Sage 100 Contractor, Sage 300 CRE, FOUNDATION®, Viewpoint and QuickBooks
• Time Tracking: Links with field time collection apps and systems, including WorkMax®construction time tracking software, ExakTime, Rhumbix and other mobile time tracking solutions
• HR: Connects with HRIS platforms and offers its own HR app to keep data sharing quick and simple  

Dedicated Construction Industry Support

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

• In-house Construction Payroll Specialists: A Support team with deep construction industry knowledge and experience who understand the nuances of contractor payroll
• 20+ Years Serving Construction: Proven track record with thousands of satisfied commercial, government and industrial construction users
• Construction Compliance Expertise: Direct access to specialists who understand Davis-Bacon Act requirements, state prevailing wage laws and DOL reporting
• Integration with Full Accounting Platform: Seamless integration capabilities with comprehensive construction accounting software, allowing businesses to expand their financial management without changing payroll providers

How Contractors Can Choose the Best Payroll Solution

Quality payroll processing can significantly impact construction business operations. Choosing a construction-specialized provider ensures your business gets the focused expertise it needs to thrive.

Before choosing a payroll provider, ask yourself:

• Does the provider specialize in construction payroll?
• How long has the provider been serving construction businesses?
• Can the system handle complex union requirements and benefit calculations?
• Does the platform provide integrated time tracking and job costing?
• Are prevailing wage and certified payroll capabilities built-in or additional services?
• Does the provider offer construction industry expertise and dedicated support?
• Can they handle Davis-Bacon Act compliance and Form WH-347 reporting?
• What is the implementation process and timeline?
• How does the provider handle ongoing compliance updates and regulatory changes?
• What level of integration is available with your existing accounting systems?
• Does the platform offer a self-service model or full-service payroll processing?

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.

Compare Lumber with Payroll4Construction

Contractors comparing Lumber and Payroll4Construction can see how different construction-specialized providers approach payroll and workforce management. Both platforms serve construction contractors exclusively, but their philosophies and service models differ significantly.

Lumber operates as a self-service payroll platform that requires contractors to manage their own payroll setup and compliance. Time tracking, field operations, expense management and payroll work together in a unified AI-powered platform. This do-it-yourself approach appeals to contractors who want to consolidate multiple tools, eliminate data silos and maintain direct control over their payroll operations.

The platform emphasizes automation and self-service capabilities, with implementation support provided through their US-based team to help businesses set up and learn the system.

Payroll4Construction takes a full-service approach, where an in-house team of construction payroll experts handles processing and compliance on behalf of contractors. This strategy allows businesses to reduce their administrative workload while accessing specialized construction payroll expertise built on over 20 years of industry experience.

The platform integrates seamlessly with contractors’ existing time tracking, accounting and HR systems without requiring replacement of current tools.

The choice between these providers depends on whether your business prefers a newer, unified platform with AI-powered automation and self-service setup or a full-service payroll solution with dedicated experts handling processing, compliance and advocacy on your behalf.

Frequently Asked Questions

What are the Pros and Cons of Using Lumber?

Pros:

Lumber offers a construction-specific platform with integrated time tracking, payroll, field operations and expense management powered by AI.

The system includes built-in prevailing wage compliance, certified payroll reporting and multi-state processing designed specifically for contractors.

The all-in-one self-service approach can reduce the need for multiple software systems, and the AI-powered automation aims to significantly reduce processing time.

Cons:

As a company founded in 2023, Lumber is a relatively newer platform in the market with a less established track record compared to providers with decades of construction payroll experience.

The self-service setup model means businesses must invest time learning the system and managing configurations. The all-in-one approach means businesses must adopt Lumber’s entire ecosystem rather than integrating payroll services with existing time tracking or HR systems they may already use and trust.

Additionally, while Lumber provides payroll and compliance reporting, the platform appears to have more limited general construction business reporting capabilities compared to more established solutions.

Which is Better for Construction Payroll, Lumber or Payroll4Construction?

Both Lumber and Payroll4Construction are built specifically for construction contractors, which distinguishes them from general business payroll providers.

Lumber offers an integrated platform that combines time tracking, field operations, expense management and payroll in one system powered by AI automation, with a self-service implementation model that puts businesses in control of their setup.

Payroll4Construction focuses specifically on full-service payroll processing where dedicated construction payroll experts handle everything for contractors.

The platform provides in-house construction payroll specialists with over 20 years of industry-specific knowledge, comprehensive compliance support (including specialized forms like eMars and DIR) and the flexibility to work with your existing time tracking and HR tools without requiring a complete technology overhaul.

Construction businesses should evaluate which approach better fits their needs: a newer, all-in-one platform with self-service automation or an established full-service payroll solution where experts handle processing and compliance on your behalf.

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 payroll processing
• Project-based cost tracking
• Dedicated construction industry support
• Integration capabilities with existing systems
• Proven track record in construction payroll

Look for providers with proven expertise in construction-specific regulations and access to specialists who can guide you through complex compliance scenarios as your business grows.

What Makes Payroll4Construction Different From Lumber?

Payroll4Construction provides a full-service payroll solution where construction payroll experts handle everything for contractors, from complex certified payroll reporting to multi-state tax compliance.

With over 20 years of service in the construction industry and thousands of satisfied users, the platform emphasizes reducing your administrative workload while ensuring accuracy and compliance. The service integrates with your existing software infrastructure, allowing you to maintain familiar workflows while our team of construction payroll and tax experts supports and advocates for you.

Lumber offers a self-service, do-it-yourself platform powered by AI where you manage payroll, time tracking, field operations and expense management within a single integrated system. This unified software approach means all workforce data lives in one place, and businesses handle their own payroll processing with the support of automation tools.

Both providers specialize in construction, but Payroll4Construction emphasizes full-service expert handling and proven experience, while Lumber emphasizes AI-powered automation and unified platform simplicity.