Certified Payroll Software Guide 2025: Davis-Bacon Compliance Made Easy
Compare the best certified payroll software for prevailing wage compliance. Learn how to automate Davis-Bacon reporting, reduce errors, and stay compliant on government contracts.
Quick Answer: Why Use Certified Payroll Software?
Certified payroll software automates Davis-Bacon and prevailing wage compliance, generating WH-347 forms, tracking wage rates by classification, and reducing errors. Manual certified payroll takes 4-8 hours weekly per project — software cuts this to under 1 hour while improving accuracy.
Why Use Certified Payroll Software?
Manual certified payroll is error-prone and time-consuming:
Software Benefits
- ✓ Automatic WH-347 generation
- ✓ Built-in wage rate tables
- ✓ Fringe benefit calculations
- ✓ Classification tracking
- ✓ Audit trail documentation
- ✓ Electronic submission
Manual Risks
- ✗ Calculation errors
- ✗ Wrong wage rates applied
- ✗ Missing classifications
- ✗ Late submissions
- ✗ Audit failures
- ✗ Penalty exposure
Compliance Stakes
Davis-Bacon violations can result in withheld payments, contract termination, debarment, and personal liability. Software reduces compliance risk significantly.
Key Features to Look For
Essential Features
Wage Rate Database
Automatic updates from DOL wage determinations. Look for state and federal rate support.
WH-347 Generation
Automatic creation of certified payroll forms from time entry data.
Fringe Tracking
Track cash fringes vs. benefits. Calculate required payments automatically.
Multi-Project Support
Handle multiple prevailing wage projects with different wage determinations.
Subcontractor Management
Collect and verify subcontractor certified payrolls. Track submission status.
Audit Reports
Generate compliance reports and documentation for audits and investigations.
Top Certified Payroll Solutions
LCPtracker
Industry-leading solution used by many government agencies and large contractors.
- ✓ Comprehensive wage database
- ✓ Agency integration
- ✓ Document management
- ✓ Subcontractor portal
- ✓ Apprenticeship tracking
- ✓ Mobile app
eMars (Elation Systems)
Popular solution focusing on prevailing wage compliance and workforce tracking.
- ✓ WH-347 automation
- ✓ EEO reporting
- ✓ Workforce analytics
- ✓ Multiple wage determinations
- ✓ Compliance alerts
- ✓ Integration options
Payroll4Construction
Construction-specific payroll with strong prevailing wage support.
- ✓ Union rate support
- ✓ Job costing integration
- ✓ Multi-state compliance
- ✓ Certified payroll forms
- ✓ Fringe management
- ✓ Affordable pricing
Foundation Software
Comprehensive construction accounting with certified payroll module.
- ✓ Full accounting integration
- ✓ Job cost tracking
- ✓ Equipment management
- ✓ Prevailing wage automation
- ✓ Reporting suite
- ✓ Scalable for growth
Selection Criteria
Consider these factors when choosing software:
Evaluation Checklist
Compliance
- • Federal Davis-Bacon support
- • State prevailing wage laws
- • Automatic rate updates
- • Required forms generation
Integration
- • Accounting software
- • Time tracking systems
- • Project management
- • Agency portals
Usability
- • Learning curve
- • User interface
- • Mobile access
- • Training resources
Support
- • Customer service quality
- • Implementation help
- • Ongoing updates
- • Compliance expertise
Implementation Tips
Start Before Your Next Project
Implement during a slower period. Do not try to learn new software while managing active certified payroll deadlines.
Set Up Wage Determinations Correctly
Take time to enter wage determinations accurately. Verify rates against DOL sources. Errors here cascade through all payrolls.
Train Your Team
Ensure payroll staff and field supervisors understand the system. Classification errors often start in the field.
Parallel Run Initially
Consider running manual and software processes in parallel for one pay period to verify accuracy before fully switching.
Compliance Tips
Ongoing Best Practices
- ☑ Submit payrolls weekly, on time
- ☑ Review rates at project start
- ☑ Track apprentice ratios
- ☑ Document all classifications
- ☑ Verify subcontractor submissions
- ☑ Keep records for 3+ years
- ☑ Monitor wage determination updates
- ☑ Address discrepancies immediately
Common Violations to Avoid
- • Incorrect worker classifications
- • Missing fringe benefit payments
- • Late or missing submissions
- • Incorrect overtime calculations
- • Failing to pay apprentice rates correctly
Frequently Asked Questions
How much does certified payroll software cost?
Ranges from $50-500/month depending on features and company size. Some charge per employee or per project. Most offer free trials. ROI is typically achieved within 1-2 projects through time savings.
Can I use my existing payroll software?
Many general payroll systems (QuickBooks, ADP) have limited certified payroll features. You may need specialized software or add-on modules for full Davis-Bacon compliance.
Do I need software for just one project?
For a single project, software may not be cost-effective unless it is large. However, if you plan to do more government work, investing in software early is worthwhile.
How do I handle subcontractor certified payrolls?
Most software includes subcontractor portals or upload features. You are responsible for collecting and reviewing sub payrolls before submitting to the owner/agency.
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