Certified Payroll Tracking: Automate Weekly Compliance with TrustLayer

Automating Certified Payroll Compliance: How TrustLayer Can Simplify Weekly Reporting

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Introduction

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Certified payroll compliance is a crucial yet complex process for general contractors and construction firms working on federally funded projects. A single mistake can result in payment delays, financial penalties, or even project shutdowns, making accurate compliance tracking essential. Managing certified payroll efficiently can be overwhelming between multi-state requirements, weekly documentation, and evolving federal regulations.

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TrustLayer is exploring the development of an automated Certified Payroll Tracking use case designed to help companies streamline compliance, minimize administrative overhead, and ensure prevailing wage requirements are met without disrupting project timelines. This is an evolving solution and is not yet publicly available.

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Why Certified Payroll Compliance Matters

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Certified payroll compliance is directly tied to state or federal funding for construction projects. If government money is involved, Davis-Bacon wages apply, ensuring that workers are paid somewhat based on standardized wage rates and fringe benefits, such as health insurance and 401(k) contributions. Contractors must adhere to these wage determinations, and if a subcontractor's provided benefits fall short, they must compensate the difference to maintain compliance.

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Recent updates to the Davis-Bacon Act, including broadened worker protections and stricter reporting requirements, alongside increased enforcement efforts by the U.S. Department of Labor, have made certified payroll compliance more critical than ever. The Infrastructure Investment and Jobs Act (IIJA) has intensified the demand for accurate reporting as more projects fall under federal wage laws.

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The challenge for businesses managing public works contracts isn't just submitting payroll records—it’s about consistently, accurately, and in alignment with varying state and federal requirements. A single error can lead to payment delays, financial penalties, and heightened regulatory scrutiny.

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The Common Challenges of Certified Payroll Compliance

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General contractors collect certified payroll reports from all subcontractors before submitting them to state or federal authorities. If a single subcontractor fails to submit, the contractor’s payment can be delayed or withheld, leading to financial and operational challenges.

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Many modern ERP and accounting platforms, such as SAP, Oracle, Sage, and Yardi, assist in generating certified payroll reports. However, tracking missing submissions, ensuring compliance across multiple subcontractors, and aligning with different state requirements remain major pain points.

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Without an automated system, companies often struggle with certified payroll compliance. Imagine a general contractor juggling multiple subcontractors across different states, each with unique submission rules. The process can quickly become overwhelming, leading to the following challenges:

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• Time-consuming manual processes – Tracking payroll compliance across multiple projects and subcontractors requires extensive data entry and verification.
• Multi-state complexity – Each state has different reporting rules, and contractors often need to adapt to different submission portals and formats.
• Risk of late or missing submissions – Delays in payroll reporting can lead to compliance violations and potential payment withholdings.
• Lack of visibility – AP teams and project managers often struggle to track subcontractor compliance status in real time.

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How TrustLayer’s Certified Payroll Solution Works

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TrustLayer’s proposed Certified Payroll Tracking use case focuses on tracking payroll compliance rather than generating or submitting payroll reports. This system helps contractors collect and verify all required payroll reports before processing payments.

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TrustLayer’s proposed Certified Payroll Tracking use case is designed to automate key aspects of compliance management, reducing manual effort while ensuring real-time oversight. This is a developing concept and subject to change based on industry feedback. Unlike traditional spreadsheet tracking or fragmented solutions, this system provides:

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1. Automated Weekly Compliance Checks

A dynamic tracking system automatically adds and monitors weekly payroll requirements per project. The system flags non-compliance if a submission is missing and alerts project managers. This ensures that contractors can quickly identify missing reports before they impact payment cycles. Unlike other solutions, TrustLayer’s automated tracking is adaptable, ensuring seamless compliance updates without additional manual effort.

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2. Multi-State Adaptability

TrustLayer dynamically adjusts to jurisdictional payroll tracking requirements. Some states require document uploads, while others allow verification via external portals or manual confirmations. The system can accommodate both methods, ensuring contractors comply with specific regional regulations without unnecessary steps. The platform supports varied state regulations and submission methods, including manual verification and optional direct upload capabilities.

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3. Subcontractor Oversight & Payment Controls

General contractors can enforce compliance by holding payments until payroll documents are correctly submitted and verified.

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4. Real-Time Visibility & Reporting

Dashboards and alerts provide AP teams and project managers instant insights into subcontractor compliance, preventing bottlenecks that delay payments.

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5. API-Driven Integration

TrustLayer enables direct API integrations with ERP and payroll systems like Microsoft Dynamics. Contractors can automate payroll compliance notifications, reducing reliance on manual follow-ups. The system also supports customizable API triggers, allowing project managers to receive alerts or request payroll confirmations based on real-time compliance status. TrustLayer integrates with ERP and project management tools like Microsoft Dynamics, ensuring payroll data flows seamlessly without duplicate data entry.

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What Sets TrustLayer Apart?

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While some competitors offer prevailing wage tracking, TrustLayer’s unique advantages include:

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• Flexible Automation – Optional weekly reminders for subs or manual sign-offs tailored to specific state requirements.
• Integration-ready – An API-first approach ensures smooth data exchange with enterprise systems.
• Customizable Workflows – Handle late or retroactive payroll submissions without disrupting records.
• Compliance Auditing Tools – Easily generate project, state, or week-based reports for audits and internal verification.

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Who Benefits from This Solution?

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TrustLayer’s Certified Payroll Tracking feature is designed for businesses of all sizes, from large-scale general contractors overseeing federal projects to mid-sized construction firms needing multi-state oversight.

• General Contractors overseeing federally funded projects.
• Construction & Engineering Firms with multi-state operations.
• AP and Compliance Teams responsible for payroll verification before releasing payments.
• Project Managers needing real-time compliance insights.

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The Future of Certified Payroll with TrustLayer

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This use case is being explored and shaped by insights from leading industry partners managing large-scale certified payroll compliance. While TrustLayer is considering potential solutions in this space, no official feature release has been announced. Early adopters are helping to refine its automation capabilities to ensure it meets the needs of companies operating across multiple states and regulatory frameworks. While TrustLayer is not yet a fully certified payroll provider, its compliance tracking capabilities will significantly reduce manual workload, improve visibility, and enhance payroll accuracy for construction professionals.

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To stay updated on this feature’s launch and learn how it can help your company, schedule a demo with TrustLayer today.

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