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Run the Payroll Fee Auditor →Blog · Payroll Management · Engineering
Engineering & Professional Services Firms: Payroll Recordkeeping Requirements (2026)
Payroll recordkeeping for engineering firms 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 WHD Form WH-347 instructions. BEG runs engineering firm 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 engineering firms
For every week in which Davis-Bacon covered work is performed, the contractor or subcontractor must submit a certified payroll with a signed Statement of Compliance to the contracting agency; the prime contractor is responsible for all subcontractor submissions, and certified payrolls and basic payroll records must be preserved for 3 years after all work on the prime contract is completed.
Use of Form WH-347 itself is optional, but the weekly certified payroll information is required; weekly submissions must not include full Social Security numbers and instead use an individually identifying number such as the last four digits.
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.
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 engineering firms the practical rule is that the pay codes for prevailing wage for government projects and billable hour payroll allocation 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.
- For every week in which Davis-Bacon covered work is performed, the contractor or subcontractor must submit a certified payroll with a signed Statement of Compliance to the contracting agency; the prime contractor is responsible for all subcontractor submissions, and certified payrolls and basic payroll records must be preserved for 3 years after all work on the prime contract is completed. [29 CFR 5.5(a)(3)]
- Use of Form WH-347 itself is optional, but the weekly certified payroll information is required; weekly submissions must not include full Social Security numbers and instead use an individually identifying number such as the last four digits. [DOL WHD Form WH-347 instructions]
- 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 prepare for a payroll audit, and the rest of the engineering firm payroll library.
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Frequently Asked Questions
Engineering firm records: 29 CFR 5.5(a)(3)
For every week in which Davis-Bacon covered work is performed, the contractor or subcontractor must submit a certified payroll with a signed Statement of Compliance to the contracting agency; the prime contractor is responsible for all subcontractor submissions, and certified payrolls and basic payroll records must be preserved for 3 years after all work on the prime contract is completed.
Engineering firm records: DOL WHD Form WH-347 instructions
Use of Form WH-347 itself is optional, but the weekly certified payroll information is required; weekly submissions must not include full Social Security numbers and instead use an individually identifying number such as the last four digits.
How long does an engineering firm 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 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: U.S. Department of Labor: Wage and Hour Division
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