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Construction Companies: Payroll Recordkeeping Requirements (2026)
Payroll recordkeeping for construction companies starts at the federal baseline, three years for payroll records and two for the time records behind them, then adds what reaches this industry: 29 CFR 5.5(a)(3) and DOL Fact Sheet #66. BEG runs construction company payroll for $45 per employee per month inside the payroll software you already use, all-inclusive, live in 3 to 5 business days.
Records specific to construction companies
A contractor or subcontractor on Davis-Bacon covered work must submit certified payrolls weekly for each week in which covered work is performed, using Optional Form WH-347 or any other format, with each submission accompanied by a signed Statement of Compliance. Regular payrolls and basic records must be preserved for at least 3 years after all work on the prime contract is completed.
The Davis-Bacon Act applies to federal contracts in excess of $2,000 for construction, alteration or repair of public buildings or public works. Contractors on covered work must pay workers weekly, submit weekly certified payroll records to the contracting agency, and post the wage determination and the Davis-Bacon poster (WH-1321) at the work site.
DOL lists these typical construction violations: not recording work before or after the shift, shorting hours as down time or rain delay, unpaid meal breaks where the employee is not fully relieved, banking overtime as comp time, failing to combine hours worked in more than one job classification in the same workweek, and not paying for travel from the shop to the work site and back.
The federal baseline every employer keeps
29 CFR 516 requires payroll records for three years and the records they were computed from, time cards, schedules and piece or commission records, for two years. Employment tax records stay four years after the return they support. Forms I-9 stay three years from hire or one year from separation, whichever is later. For construction companies the practical rule is that the pay codes for prevailing wage compliance and certified payroll produce records of their own, and an audit reads those, not the summary.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- A contractor or subcontractor on Davis-Bacon covered work must submit certified payrolls weekly for each week in which covered work is performed, using Optional Form WH-347 or any other format, with each submission accompanied by a signed Statement of Compliance. Regular payrolls and basic records must be preserved for at least 3 years after all work on the prime contract is completed. [29 CFR 5.5(a)(3)]
- The Davis-Bacon Act applies to federal contracts in excess of $2,000 for construction, alteration or repair of public buildings or public works. Contractors on covered work must pay workers weekly, submit weekly certified payroll records to the contracting agency, and post the wage determination and the Davis-Bacon poster (WH-1321) at the work site. [DOL Fact Sheet #66]
- DOL lists these typical construction violations: not recording work before or after the shift, shorting hours as down time or rain delay, unpaid meal breaks where the employee is not fully relieved, banking overtime as comp time, failing to combine hours worked in more than one job classification in the same workweek, and not paying for travel from the shop to the work site and back. [DOL Fact Sheet #1]
Read the full guide to how to prepare for a payroll audit, and the rest of the construction company payroll library.
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Frequently Asked Questions
Construction company records: 29 CFR 5.5(a)(3)
A contractor or subcontractor on Davis-Bacon covered work must submit certified payrolls weekly for each week in which covered work is performed, using Optional Form WH-347 or any other format, with each submission accompanied by a signed Statement of Compliance. Regular payrolls and basic records must be preserved for at least 3 years after all work on the prime contract is completed.
Construction company records: DOL Fact Sheet #66
The Davis-Bacon Act applies to federal contracts in excess of $2,000 for construction, alteration or repair of public buildings or public works. Contractors on covered work must pay workers weekly, submit weekly certified payroll records to the contracting agency, and post the wage determination and the Davis-Bacon poster (WH-1321) at the work site.
How long does a construction company keep payroll records?
Three years for payroll records and two for supporting time records under the FLSA, four years for employment tax records under the IRS rule, and longer where an industry rule cited above says so.
What does managed payroll cost for a construction company?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Prevailing wage compliance, certified payroll and union vs non-union are configured at setup, not billed as add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Construction Companies. BEG manages payroll at $45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage and Hour Division
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