Bookkeeping for contractors and service businesses in MetroWest and Greater Boston.

Call or Text: (774) 277-8683

How do I track certified payroll for prevailing wage jobs?

Certified payroll is required documentation proving you paid workers the correct prevailing wage rates on public works projects. Whether the job falls under federal Davis-Bacon requirements or Massachusetts state prevailing wage laws, the tracking and reporting process follows a similar structure.

Every worker on the project needs to be tracked individually. For each person, you capture their name, job classification, hours worked each day, hourly wage rate, fringe benefits, and any deductions. The job classification matters because prevailing wage rates vary by trade. A laborer has a different required rate than an electrician or equipment operator. Misclassifying a worker, even accidentally, creates compliance problems.

Fringe benefits require separate tracking. Prevailing wage includes both a base hourly rate and a fringe benefit rate. You can pay fringes directly to workers as cash, contribute to qualifying benefit plans like health insurance or retirement, or use a combination. However you handle it, the certified payroll report must show the fringe breakdown and demonstrate the total compensation meets the required rate.

The standard form is WH-347, which you submit weekly for each covered project. The form lists every worker, their classification, daily hours, and pay rates. At the bottom, you sign a statement certifying the information is accurate and workers were paid correctly. This certification carries legal weight. Signing off on inaccurate information can result in penalties, contract termination, or debarment from future public work.

Your payroll system needs to support this level of detail. Standard payroll software often falls short because it processes pay periods, not daily hours by project. You either need certified payroll software that generates WH-347 forms directly, or you need a manual process to extract the data from timesheets and payroll records. Either way, the underlying time tracking must capture hours by worker by day by project.

Construction contractors in Massachusetts face both federal and state prevailing wage requirements depending on project funding. State jobs follow rates published by the Department of Labor Standards, which can differ from federal Davis-Bacon rates. Make sure you know which applies to your project because using the wrong rate schedule is a compliance failure even if you paid what you thought was correct.

Keep records for at least three years after project completion. This includes payroll records, time sheets, and copies of submitted certified payroll reports. Audits happen, sometimes years later, and you need documentation to support what you certified.

The most common mistakes are using incorrect job classifications, not accounting for fringe benefits properly, and missing weekly submission deadlines. Some contractors track hours but fail to break them down by day or by project when workers move between jobs. Others calculate fringes wrong or assume their standard benefit package automatically satisfies the requirement without verifying rates.

If prevailing wage work is a regular part of your business, building proper tracking into your systems from the start prevents scrambling on every project. Local bookkeepers familiar with construction workflows can help set up job-level time tracking and payroll processes that generate the documentation you need without creating extra administrative work for every certified payroll submission.

Greater Boston's Trusted Bookkeeping Partner

The Next Step:
A Short Conversation

We'll ask a few questions, figure out what you need, and give you a straightforward quote.

More Questions

Where can I find construction bookkeeping help in Massachusetts?

Look for bookkeepers with specific construction experience who understand job costing, WIP accounting, and retainage tracking. Local knowledge of Massachusetts construction rhythms and vendor norms makes a real difference.

Read answer

How do I track subcontractor expenses by project?

Link every sub invoice to a specific job or project in your accounting system. Require subs to include the job name or number on their invoices, enter costs with the project code attached, and reconcile against your estimates regularly.

Read answer

What accounting do plumbers and electricians need?

Plumbers and electricians need job costing to track profitability by project, expense tracking for materials and vehicle costs, and systems for invoicing and cash flow. Good accounting shows which jobs make money and which don't.

Read answer

What financial reports help track cash flow?

The most useful reports are accounts receivable aging, accounts payable aging, bank reconciliation, and a rolling cash forecast. The profit and loss statement shows profitability but not cash position, so you need reports that track actual money movement.

Read answer

How do I track inventory for my retail business?

Use a point-of-sale system with inventory features, set up every product with accurate costs and reorder points, and do regular physical counts. Connect your POS to your accounting software so inventory and financials stay in sync.

Read answer

How do I track equipment costs by job?

Track rented equipment by assigning invoices directly to jobs. For owned equipment, calculate an internal hourly rate based on depreciation and operating costs, then log usage and charge jobs accordingly.

Read answer

Full-service bookkeeping firm serving contractors and small businesses in MetroWest and Greater Boston. From monthly bookkeeping to job costing and payroll, we bring 20 years of hands-on business experience to your back office. Locally owned in Bellingham, Massachusetts.

Client Reviews

5-Star Rated Firm

© 2026 Janek Business Solutions, LLC