Prevailing Wage vs. Standard Payroll: What Contractors Need to Know
- Paula Stratigos
- Jul 15
- 1 min read
Prevailing Wage vs. Standard Payroll: What Contractors Need to Know
Public works jobs bring opportunities—but also special requirements. Chief among them is prevailing wage payroll compliance.
What is Prevailing Wage? Prevailing wage is the minimum rate contractors must pay workers on government-funded projects. It’s set by state and federal authorities to ensure fair pay.
Standard Payroll vs. Prevailing Wage Payroll
· Standard payroll: Company-defined rates, usually private jobs.
· Prevailing wage payroll: Must meet or exceed government-set rates, including fringes.
Why Compliance Matters Mistakes can cost you contracts, invite audits, or result in fines. Agencies often require certified payroll reports to verify compliance.
How Rates Are Determined Wage determinations vary by trade, county, and funding source. Know your rates before bidding.
My Construction Payroll’s Advantage We track prevailing wage rates for 14 states, manage certified reporting, and ensure you’re always audit-ready.
Ready to simplify compliance? Get A Quote | Learn More
External Resource: DOL Wage Determinations
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