Certified payroll cost calculator: how long it takes and what it costs

How long certified payroll takes

Use 55 minutes as a starting point for one weekly record, then correct it. DOL does not say the 55 minutes is per weekly record. Reading it that way is our own choice. The burden statement on the WH-347 form gives that average for the whole collection: reviewing instructions, searching existing data sources, gathering and maintaining the data, and completing and reviewing the collection. Three limits apply.

1. It is an average, not your crew. A crew of five and a crew of forty do not take the same time, and the average says nothing about yours.
2. It is DOL's estimate for its federal collection, not for California's eCPR. The WH-347 has one project name, one payroll number, and one week ending date on it, so the calculator counts one record for each project for each payroll week. That unit is our choice, not DOL's. DOL says covered contractors on federal or federally assisted construction contracts must submit payroll information on a weekly basis, and that use of the WH-347 itself is optional.
3. California is extra work. Each contractor and subcontractor on a covered project furnishes records directly to the Labor Commissioner, electronically, at least once every 30 days while work is performed, or more often if the contract says so, under Labor Code section 1771.4(a)(3). DIR's eCPR FAQ lists exempt projects, including those run under the legacy labor compliance programs of Caltrans, the City of Los Angeles, LAUSD and Sacramento County, and projects covered by qualifying project labor agreements, at the Labor Commissioner's discretion. Check your project. The FAQ gives no time estimate for submitting. It names two ways in, the manual iForm or an XML upload, and warns that the iForm does not save your work: if you will be away from the computer for more than 30 minutes, submit what you have and amend the payroll for the remaining employees.

So the practical answer is a number you measure yourself. Time your next record from payroll export to a submitted eCPR, including the minutes spent checking classifications and rates, and enter it below.

The calculator

Nothing you type leaves this page. The LCPcertified prices in it come from LCPcertified's page, and the WellStanding prices are our own. The hourly cost box is empty on purpose, because only you know it and we do not supply an average. Leave it blank and you still get break-even rates.

Where the prices come from

Each price comes from the vendor's own page, or from ours.

For what each vendor's page says about California, see best certified payroll software in California. For who produces, uploads, and signs, see certified payroll software versus a service.

Worked example

Enter 15 workers, 2 projects, 4 weeks a month, 12 months, 55 minutes, and a $50 hourly cost. That is 2 times 4 times 12, or 96 records a year, and 96 times 55 divided by 60, or 88 hours. The $50 an hour, the 30 minute tool figure, and the 10 minute review figure are numbers we picked to show the arithmetic. They are not averages. Replace them.

Of the Plus options that fit 2 projects, $12 per report comes to $1,152 for 96 records. That is less than $145 a month for 12 months ($1,740) or the $1,300 yearly tier, so the calculator uses it. Our year one price is $995 plus 12 months at $249, or $3,983. After setup it is $2,988 a year, plus your review time.

A tool that does not cut your minutes costs more than doing it yourself, because you pay for it and still do the work. A tool that really gets a record down to 30 minutes is the cheapest row in every year. That is the case for software, and it rests on a number only a trial can give you. Against the flat fee, doing it yourself is cheaper in year one by $383, because of the setup, and the flat fee is cheaper from year two by $612. The break-even hourly cost is $41.50 after setup and $55.32 in year one. Change the review minutes and those move.

What the calculator does not count

• The signature. The declaration is the contractor's. WellStanding prepares and files; the contractor signs, and nothing is filed until the contractor has signed. We never sign for you. Under Labor Code section 1776(a) each payroll record contains or is verified by a written declaration under penalty of perjury. On the federal form, DOL's WH-347 page says the Statement of Compliance must be signed by the contractor or subcontractor, or their agent who paid or supervised the payment of the workers, and the form's statement begins "I paid or supervised the payment of the laborers or mechanics." See who signs certified payroll.
• A missed filing. Under Labor Code section 1771.4(a)(3)(B) and (C), failing to furnish records carries a penalty of $100 per day, not to exceed $5,000 per project. The Labor Commissioner does not levy it until 14 days after the requirement in clause (i) of subparagraph (A), which is a submission at least monthly, or more often if the contract says so. See the penalty calculator.
• Your payroll system. A tool saves minutes only if it can take your payroll data. Check payroll systems that export DIR eCPR XML first.
• Hiring. A hire is a fixed monthly cost whether or not you have public works payroll. Compare their monthly pay with our monthly fee, as in how much certified payroll costs.

What the result tells you

Doing it yourself comes out lowest. Your volume is low or an hour of your time is cheap. Keep doing it, and time yourself so the number holds.

A tool comes out lowest. Check that its minutes are real. A free trial on one real payroll week gives you the number to enter.

The flat fee comes out lowest, or close. You trade a fixed monthly price for review time instead of preparation time. You send your payroll export. WellStanding prepares the WH-347 and the eCPR from it, and a person at WellStanding reviews every filing. You review the finished filing and sign the certification in one step, and nothing is filed until you have signed. The certification is always yours; we never sign for you. The first filing is free, so you see a finished one before you decide.

Questions