PAYROLL INTEGRATION, LABOR COST IN JOB COSTING

CONSTRUCTION PAYROLL JOB COSTING INTEGRATION.

QUICK ANSWER

Labor is your largest cost. If your payroll system and your job costing system don't talk to each other, you're manually reconciling every pay period and your job cost is always wrong. SPM connects your payroll system directly to ControlQore so labor cost flows into job costing with no manual entry. The integration works through vetted payroll partners at additional cost, because SPM doesn't process payroll.

SPM doesn't process payroll and never will. What SPM does is make the payroll data usable: the hours and the burdened dollars go into the right job and the right cost code the day payroll is processed, instead of a week later after somebody retypes them. That one change is what makes a job cost report worth reading. Until the labor number in job costing is the same labor number the payroll system produced, every margin on every job is an estimate, and the bid comparison you're trying to make is comparing two different things.

BY JOSH LUEBKERPublished 2026-08-06Updated 2026-10-19
THE DEFINITION

WHAT IT MEANS.

Payroll job costing integration is a direct data link that moves labor hours and burdened labor cost out of the payroll system and into the job costing system without manual entry.

Labor is the largest cost on most subcontractor jobs and the fastest moving one, so it's the line where a week of delay does the most damage. A material invoice that posts late is still the same number when it posts. Labor that posts late has already been spent on a phase that has since moved on, which is why the reconciliation lag is worse for labor than for anything else on the job.

WHAT WE SEE IN THIS BUSINESS

WHERE THE LABOR NUMBER GOES WRONG.

01

Payroll and job costing live in separate systems

Most construction subcontractors process payroll in one system and track job costs in another. The result is a weekly or monthly manual exercise to move labor data between the two, and the job cost stays a pay period behind. A number that's always behind and always slightly off never gets trusted, so nobody uses it to make a decision.

02

Certified payroll is completely disconnected

Prevailing wage contractors produce certified payroll reports in their payroll system and job costing in their accounting system, two separate processes that never reconcile automatically. Every week is a manual matching exercise. Audit exposure grows on both sides while nobody has the hours to reconcile them.

03

True labor cost never makes it into job costing

Payroll burden, meaning taxes, benefits, fringe contributions, and workers comp, is often estimated inside job costing rather than pulled from real payroll data. The result is job cost reports built on the wrong labor rate. Margin estimates that come out of them don't reflect what the job did.

HOW SPM FIXES IT

ONE LABOR NUMBER, NOT TWO.

Payroll flows directly into ControlQore

Through vetted payroll partners, labor hours and costs move straight from your payroll system into ControlQore job costing. There's no manual export, no manual import, and no weekly reconciliation exercise. Labor cost appears in your job cost the day payroll is processed.

True burden rate in every job

Your real burden rate, covering taxes, benefits, workers comp, and fringe contributions, gets built into ControlQore so every job reflects true labor cost instead of an estimated rate. Bid margin and closeout margin then use the same labor cost basis. That's what makes the comparison between the two mean anything.

Certified payroll integrated for prevailing wage

For prevailing wage contractors, certified payroll reports generate from the integrated payroll data and flow into ControlQore job costing at the same time. There's no separate certified payroll spreadsheet and no manual reconciliation. Data that comes from one source can't disagree with itself in an audit.

WHAT YOU GET

THE OUTPUTS, NAMED.

Labor hours and burdened cost flowing from payroll into ControlQore job costing every pay period
Your real burden rate built into ControlQore at the cost code level
Certified payroll reports generated from the same integrated data
Bid margin and closeout margin built on one labor cost basis
$10.7M+
Client AR Recovered Since 2023
48
Active Trade Specializations
60 DAYS
Average Onboarding Time
PRICING

FLAT MONTHLY FEE. NO SURPRISES.

Three tiers, priced by your trailing twelve month revenue. Which one you're in depends on how much of the work you want off your desk. No hourly billing. No payroll. The one-time onboarding fee is right here in the table.

Last 12 months revenueMonthly feeOne-time onboarding
Under $1M$1,900 to $3,300$1,000
$1M to $3.5M$2,600 to $5,300$1,500
$3.5M to $6.5M$3,800 to $8,300$3,000
$6.5M to $9.5M$5,100 to $11,800$4,500
$9.5M to $12.5M$6,100 to $14,900$6,000
$12.5M to $15.5M$7,400 to $17,650$7,500
$15.5M to $18.5M$9,400 to $22,400$9,000
$18.5M+Quoted individuallyQuoted individually

The onboarding fee covers migrating your books back to the start of your last taxable year and getting you fully operational in 60 days. It's billed once, with your first invoice. It's the same for all three tiers. Your first month is prorated, and your monthly engagement starts on the first of the first full month.

Range reflects the three tiers below. Which one you're in depends on how much of the work you want off your desk. No payroll. No hidden line items. The onboarding fee is right here in the table.

Core

You stop guessing.

You get the CFO work. Job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a meeting every month that ends in decisions and never in a report.

Your bookkeeper still does the books.

Strategic

Every job shows its margin while it is still open.

Everything in Core, plus the bookkeeping and bank reconciliations done for you, and the job costing and WIP software set up, loaded with your cost codes, and managed every month. Use your own online software, or move to ours and we cover it.

A bookkeeper we choose does the books and reconciliations. No payroll.

Platinum

You approve, and the money side gets handled.

Everything in Strategic, plus a controller we choose who handles your bills and receivables for you the way an in-house controller would. They call vendors, pay the bills and keep the accounting current. We plan the cash flow first, and you approve every payment because it is your money.

A controller we choose does the payables and receivables. No payroll, no pay applications, no collections.

COMMON QUESTIONS

FREQUENTLY ASKED.

No. Payroll integration is available through SPM's vetted payroll software partners at additional cost, separate from the SPM engagement. SPM manages the relationship, confirms the integration works correctly with ControlQore, and coordinates the setup. The payroll partner bills you separately for their side.

Our vetted payroll partners support both prevailing wage and regular payroll for commercial construction subcontractors. Which one fits depends on what you use today and whether you have certified payroll obligations. Book a call and Josh will ask what you use today. Nothing gets sold on it and nothing gets proposed.

No. SPM doesn't process payroll. We connect you to vetted payroll partners whose systems integrate directly with ControlQore, so payroll data flows into job costing automatically. SPM manages the financial side and the partner manages the payroll side.

Yes. Prevailing wage integration also generates certified payroll reports, tracks fringe benefit elections, and allocates apprenticeship ratios to jobs, all flowing into ControlQore automatically. Regular payroll integration covers hours, wages, and burden rates by job and cost code.

Three tiers, and which one you are in depends on how much of the work you want off your desk. Core is where you stop guessing: job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a monthly meeting that ends in decisions, while your bookkeeper keeps doing the books. Strategic is where every job shows its margin while it is still open: a bookkeeper we choose does the books and the bank reconciliations, and the job costing and WIP software is set up and managed for you, on your own online software or ours. Platinum is where you approve and the money side gets handled: a controller we choose handles your bills and receivables the way an in-house controller would, and you approve every payment. No payroll. No scope gaps.
WHAT THIS TIES INTO
Josh Luebker, SPM The Construction CFO
Josh Luebker
FRACTIONAL CFO · SPM THE CONSTRUCTION CFO

Josh Luebker is a master electrician turned construction CFO, president of SPM The Construction CFO and author of CONTROL: C.F.O.S. Construction Financial Operating System.

HOW MANY DAYS BEHIND IS YOUR LABOR COST?

Josh asks questions for twenty minutes about how payroll hours reach your job cost reports and how long that takes. He sells nothing and proposes nothing. If he can help, you'll schedule a longer second call.

You don't hire a CFO because it's safe, you do it because the real risk isn't having one.
Book a 20 minute call

20 minutes. Nothing gets sold on this call and nothing gets proposed. Josh asks questions to work out whether he can help at all.

OR GET THE WIP SCHEDULE TEMPLATE. NO CALL NEEDED.