Prevailing wage compliance can quickly become overwhelming. Contractors working on public projects must manage complex wage determinations, certified payroll reporting, fringe benefit rules, and apprenticeship requirements. Mistakes in any of these areas can lead to costly penalties, project delays, or even disqualification.
That’s why choosing the right prevailing wage software is so important. However, not all solutions are created equal. You need a platform that supports your compliance needs both pre and post payroll and does so without interfering with your existing payroll provider. That’s where HCM TradeSeal stands out.
Why You Need Specialized Software for Prevailing Wage Compliance
Prevailing wage laws, including the Davis-Bacon Act and related state requirements, mandate that workers on publicly funded construction projects receive wages and benefits that match local standards. While this protects worker compensation, it creates several challenges for employers, such as:
- Correctly classifying workers by trade and project
- Keeping wage and fringe benefit rates up to date
- Submitting accurate certified payroll reports weekly
- Allocating fringe benefits properly
- Monitoring apprenticeship ratios and maintaining records
Generic payroll systems and spreadsheets often fall short in handling these tasks. The right software should help you set up payroll accurately in advance and generate reports efficiently afterward. This end-to-end support is key to staying compliant, avoiding errors, and preparing for audits.
Key Features to Look For in Prevailing Wage Software
To truly support your business, prevailing wage software must go beyond basic reporting. Here are the essential features to prioritize:
1. Pre-Payroll Setup for Classifications and Fringes
A solid compliance process starts with accurate data. The software should allow you to assign the correct worker classifications, job roles, and project-specific wage rates before payroll begins. It should also handle multiple classifications and fringe allocations when workers perform different tasks.
2. Automatic Certified Payroll Reports
After payroll is processed, the system should automatically generate certified payroll reports, such as the WH-347 form. These reports should auto-fill with your actual payroll data, ready for review and submission with minimal effort.
3. Fringe Benefit Tracking
Fringe benefits play a crucial role in compliance. Your platform should track how much of the required fringe is paid as cash versus contributions to benefit plans. This ensures you meet the legal requirements without creating unnecessary payroll costs.
Learn more about Fringe Benefits on the WH-347.
4. Apprenticeship Compliance Monitoring
Many projects require a specific ratio of apprentices to journeyworkers. A quality system will track these ratios daily across all crews and store required documentation for each apprentice, making audits faster and easier.
5. Payroll System Integration
Your prevailing wage software should enhance, not replace, your existing payroll system. Look for a solution that integrates seamlessly by exporting pre-payroll data and importing processed payroll results. Compatibility with providers like ADP, Paychex, Workday, Paylocity, UKG, or Paycor is a major advantage.
6. Project-Level Flexibility and Scalability
Whether you’re handling one contract or managing dozens of projects across multiple states, the software should adapt to your workload. Features like project-based wage setups, user access controls, and cloud-based accessibility are essential for growing construction businesses.
7. Organized Records and Audit Readiness
In the event of an audit, fast access to complete records can save time and prevent fines. Your software should maintain a secure, organized history of wage rates, payroll reports, classification logs, and submission confirmations; everything you need to demonstrate full compliance.
How HCM TradeSeal Delivers Powerful Compliance Support
HCM TradeSeal is a purpose-built compliance platform for contractors working on public projects. It focuses on prevailing wage requirements without replacing your payroll provider. Instead, it works alongside your existing systems to improve efficiency and accuracy.
Here’s how HCM TradeSeal helps:
- Pre-payroll configuration: Assign roles, wage rates, and fringe allocations before payroll is processed.
- Certified payroll automation: Generate complete, accurate certified payroll reports after each payroll run.
- Real-time compliance tracking: Stay current on wage rates, fringe thresholds, and apprenticeship ratios.
- Payroll system integration: Easily export and import data to and from your payroll software.
- Comprehensive recordkeeping: Maintain all compliance documents and history in one secure, centralized system.
- Expert support team: Work with professionals who understand the challenges of construction compliance and offer guidance every step of the way.
Final Thoughts
Prevailing wage compliance doesn’t have to be difficult. With the right software, you can eliminate guesswork, avoid costly mistakes, and free up your team to focus on getting the job done right.
HCM TradeSeal is a powerful award winning compliance engine that wraps around your payroll system to ensure every project is compliant from start to finish. HCM TradeSeal focuses on calculating the data correctly before payroll is processed to ensure the data is accurate in the certified payroll reports. It is important to look for a software that is easy to use and scalable with your organization so you stay compliant even when your business is growing.
Ready to simplify prevailing wage compliance? Learn more by booking a free demo with us.
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Andrew Ho is a Sales Engineer at HCM TradeSeal, bringing five years of experience in the Human Capital Management industry. He specializes in demonstrating how HCM TradeSeal helps organizations streamline prevailing wage and union reporting compliance. For more information or to schedule a demo, visit www.hcmtradeseal.com.
About
Founded in 2020, HCM TradeSeal has become a Human Capital Management’s top choice for Construction industry compliance. Recognized as the “Prevailing Wage Compliance Service of the Year 2025” by ManageHR magazine, HCM TradeSeal offers a proven integration with the nations most popular Payroll and ERP providers.
What sets us apart? We specialize in assisting companies with complex union requirements and Davis-Bacon compliance. Our full-service rate management and validation ensure accuracy before payroll is processed, minimizing compliance risks. Furthermore, by automating wage calculations and streamlining certified payroll and union reporting, we help payroll teams save valuable time each week. With HCM TradeSeal, payroll and reporting become effortless, giving you peace of mind.