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Run the Payroll Fee Auditor →Blog · Payroll Management · Engineering
Engineering & Professional Services Firms: Setting Up Direct Deposit (2026)
Direct deposit for an engineering firm is set up once per employee with a bank authorization, prenoted, then paid through ACH on the pay schedule the state allows, with prevailing wage for government projects and billable hour payroll allocation settling on the same file. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
Setup for engineering firms
Each employee signs a direct deposit authorization with routing and account numbers, the account is prenoted with a zero-dollar test before the first live deposit, and split deposits are recorded per employee. Federal law does not let an employer make direct deposit mandatory to a bank of the employer's choosing, and most states require a paper or pay card alternative for employees who do not opt in.
The Davis-Bacon Act applies to federal and District of Columbia contracts over $2,000 for construction, alteration or repair of public buildings or works, and Related Acts extend it to most federally assisted construction. Contractors must pay laborers and mechanics the prevailing wage including fringe benefits, pay weekly, and submit weekly certified payroll records to the contracting agency.
Timing and the engineering firm pay cycle
The ACH file goes two banking days before payday for the funds to land on the date, which means hours for engineers and project managers close earlier than the payday itself, and prevailing wage for government projects for the period is settled on that file or on a documented later settlement date. Off-cycle runs, final checks and corrections use same-day ACH where the bank supports it.
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.
- The Davis-Bacon Act applies to federal and District of Columbia contracts over $2,000 for construction, alteration or repair of public buildings or works, and Related Acts extend it to most federally assisted construction. Contractors must pay laborers and mechanics the prevailing wage including fringe benefits, pay weekly, and submit weekly certified payroll records to the contracting agency. [DOL Fact Sheet #66]
Read the full guide to how to set up direct deposit, and the rest of the engineering firm payroll library.
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Frequently Asked Questions
Can an engineering firm require direct deposit?
Federal Regulation E bars an employer from requiring deposit to a particular bank; the employee chooses the account. Many states add that a no-fee alternative must be offered, so a written opt-in with an alternative is the safe policy.
When does the engineering firm pay file have to be released?
Two banking days before payday for standard ACH. Same-day ACH is available for off-cycle runs and corrections at a higher per-item cost. The Davis-Bacon Act applies to federal and District of Columbia contracts over $2,000 for construction, alteration or repair of public buildings or works, and Related Acts extend it to most federally assisted construction.
What does managed payroll cost for an engineering firm?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Prevailing wage for government projects, billable hour payroll allocation and PE license classification 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 Engineering & Professional Services Firms. 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: IRS: Understanding Employment Taxes
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