HR Tips for Compliance with Federal and State Payroll and Recordkeeping Requirements

Payroll Compliance Guide for Prevailing Wage Contractors

Complex and varied prevailing wage and recordkeeping laws are definitely a source of problems for many prevailing wage contractors and HR managers. These laws can differ from state to state. Not only that, the federal government also has its own requirements for payroll and recordkeeping for prevailing wage contractors. Read on and find out what you must take note in your recordkeeping activities for your prevailing wage projects.

Compliance with Federal Law

The Fair Labor Standards Act requirements are focused on the information contained in your payroll records, rather than on the process and form of these records. The payroll records must be kept in a secure place in the worksite or at a record-keeping office. Once requested by the US Department of Labor, they must be provided within 72 hours.

The information that must be included in the payroll records are the following:

  • Employee’s full name
  • Employee’s Social Security Number
  • Total hours worked in a week
  • Basis on which the wages are paid
  • Employee’s regular hourly rate
  • Total daily or weekly straight-time wage
  • Total overtime wage for the week

You must keep these payroll records for at least three years. Other additional record, such as employee time cards must be kept for at least two years.

Compliance with State Prevailing Wage Laws

In some states, they have their own set of prevailing wage laws. This includes payroll and recordkeeping requirements. However, this will vary from state to another state. Some documents that are required by federal law to be kept for two years are required by some states to be kept and maintained for three years.

Take the state of Illinois as an example, where payroll records must be kept by employers for 10 years, post-employment.

Twenty-six states require employers to provide their workers with pay stubs, which can either be printed or electronic. This is, however, not required by federal law

Manage your Payroll and Recordkeeping Program Effectively with ARCHER JORDAN

Prevailing wage and hour laws can be a mystery to the ordinary citizen. It is to your contracting company’s best interest to have counsel in these matters. These laws can differ, based on the location where you operate.

We at ARCHER JORDAN, will help you ensure your compliance to state and federal prevailing wage and hour laws, no matter where you are in the US. Avoid penalties and expensive fines. Call us now!

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