14 min read

Best Certified Payroll Software for Small Contractors (2026 Comparison)

If you're a small contractor doing Davis-Bacon work, you need certified payroll software that actually fits your operation — not enterprise tools built for agencies or general contractors with 500 employees. We compared seven options so you don't have to.

Key Takeaways

  • Most certified payroll software is built for agencies and enterprises — not small contractors with 5–50 employees.
  • LCPtracker and eMars are agency-assigned portals — you may be required to use them, but they don't help you prepare reports.
  • Enterprise tools like FOUNDATION Software start at $50K+ to implement, which is overkill for small operations.
  • AI-powered compliance checking catches misclassifications, fringe errors, and overtime mistakes before the DOL does.
  • BaconAI is $299/mo flat, self-serve setup, and the only tool in this comparison with AI error checking.

Why This Comparison Exists

Every contractor on a Davis-Bacon covered project is required to submit weekly certified payroll reports using the WH-347 form. Getting it wrong means back wages, debarment, or worse.

But most "certified payroll software" was built for large general contractors, government agencies, or enterprises with dedicated compliance departments. Small contractors — 5 to 50 employees, a handful of federal projects per year — get stuck with tools that are either too expensive, too complex, or both.

This comparison looks at seven tools through the lens of a small contractor: Can you afford it? Can you set it up yourself? Does it actually catch errors before the DOL does?

The 7 Tools Compared

1. LCPtracker

LCPtracker is one of the most well-known names in certified payroll compliance. It's widely used by government agencies and prime contractors to track certified payroll submissions from their subcontractors.

Many public agencies require subs to submit through LCPtracker, so you may have encountered it as a submission portal rather than a tool you chose yourself.

Strengths:

  • Strong agency-side compliance tracking
  • Widely adopted by public owners
  • Good reporting and audit trail features

Heads up for small subs

LCPtracker is designed primarily for the agency and prime contractor side. Pricing is not transparent — you typically need to request a demo and negotiate. The interface is built around compliance oversight, not around making it easy for a small sub to fill out their weekly WH-347. If your agency requires LCPtracker for submission, you'll use it regardless, but it's not a tool most small contractors would choose on their own.

2. Points North

Points North focuses on prevailing wage compliance and certified payroll management. It offers tools for tracking wage determinations, managing fringe benefits, and generating certified payroll reports.

The platform has a solid reputation in the mid-market construction space.

Strengths:

  • Good compliance tracking features
  • Handles fringe benefit calculations
  • Supports multiple wage determinations per project
  • Responsive customer support

Limitations for small contractors: Data entry is largely manual — you're keying in hours and classifications yourself, which is where most errors happen. There's no AI-powered error checking to catch misclassifications before you submit.

Mid-market pricing may be a stretch for contractors running only a few federal projects per year.

3. eMars

eMars (Enterprise Management and Reporting System) is a government-side compliance system used primarily by state agencies to manage certified payroll submissions and monitor contractor compliance.

Some state DOTs and public works departments require contractors to submit through eMars.

Strengths:

  • Integrated with government oversight workflows
  • Provides agencies with centralized compliance monitoring

Not a contractor tool

eMars is a government system with a dated interface built for agency reviewers, not for contractors trying to efficiently fill out their weekly reports. You won't choose eMars — it's assigned to you by the agency. And it does nothing to help you catch errors before submission.

4. Miter

Miter is a VC-backed full-service payroll platform built for the construction industry. It handles everything from time tracking to tax filing to certified payroll, positioning itself as the all-in-one payroll solution for contractors.

The platform is modern, well-designed, and ambitious in scope.

Strengths:

  • Modern interface
  • Full payroll processing (not just certified payroll reporting)
  • Integrates time tracking and benefits
  • Purpose-built for construction

Limitations for small contractors: Miter is a full payroll system, which means you're replacing your existing payroll provider (QuickBooks, ADP, Gusto), not supplementing it. That's a much bigger commitment than adding a certified payroll reporting tool.

Pricing reflects the broader scope — it's a more expensive solution because it does more. As a VC-backed company pursuing growth, the long-term focus may shift toward larger contractors over time.

5. hh2

hh2 provides cloud-based construction payroll and field operations tools that integrate with FOUNDATION Software and Sage. If you're already running FOUNDATION as your accounting and project management backbone, hh2 extends it with mobile time entry, document management, and certified payroll capabilities.

Strengths:

  • Tight integration with FOUNDATION Software
  • Mobile-friendly time entry
  • Good document management for field operations
  • Established in the construction technology space

Limitations for small contractors: hh2 requires FOUNDATION Software as the base system, which means you're buying into an entire ecosystem.

If you're not already on FOUNDATION, the combined cost and implementation effort is significant. It's not a standalone certified payroll tool.

6. FOUNDATION Software

FOUNDATION Software is a full-scale construction ERP system covering accounting, project management, job costing, and payroll — including certified payroll. It's one of the most established names in construction technology, trusted by mid-size and large contractors nationwide.

Strengths:

  • Comprehensive construction ERP
  • Strong job costing and project management
  • Handles certified payroll as part of a larger system
  • Decades of industry experience
  • Excellent for contractors who need a full back-office platform

Overkill for small crews

Implementation starts at $50,000 or more and can take months. You need training, possibly a consultant, and a dedicated admin to maintain the system. For a contractor with 10 to 30 employees running a few federal projects, FOUNDATION is like buying a semi truck to haul groceries — it works, but it's far more than you need.

7. BaconAI

BaconAI is purpose-built for small contractors doing Davis-Bacon work. Instead of trying to be a full payroll system or an enterprise ERP, it focuses on one thing: helping small contractors generate compliant certified payroll reports without the complexity and cost of enterprise tools.

Strengths:

  • AI-powered compliance checking that validates worker classifications against your wage determination before you submit
  • Self-serve setup — no consultants, no implementation project
  • $299 per month flat pricing with no per-user or per-project fees
  • Designed for contractors with 5 to 50 employees
  • Free WH-347 generator tool available now

Good to know

BaconAI is currently in pre-launch (waitlist stage). It does not process payroll — it generates certified payroll reports alongside your existing payroll provider. It's not built for enterprises or agencies. If you need a full ERP or all-in-one payroll system, BaconAI isn't the right fit.

Comparison Table

SoftwareBest ForPricingAI CheckingSelf-Serve Setup
LCPtrackerAgencies & primesContact for quoteNoNo
Points NorthMid-market contractorsMid-market (varies)NoPartial
eMarsGovernment agenciesAgency-assignedNoNo
MiterFull-service payrollHigher (full payroll)NoYes
hh2FOUNDATION usersAdd-on (varies)NoNo
FOUNDATION SoftwareEnterprise contractors$50K+ implementationNoNo
BaconAISmall contractors (5–50)$299/mo flatYesYes

How to Choose the Right Tool

The "best" certified payroll software depends entirely on your situation — the size of your operation, your existing tech stack, and how many federal projects you run.

  • If your agency requires a specific portal: You don't have a choice. LCPtracker and eMars are assigned by the project owner. You'll still want a separate tool to prepare and validate your reports before uploading.
  • If you're a mid-size contractor (50+ employees): Points North or Miter may be worth evaluating. Points North for compliance-focused reporting, Miter if you're ready to switch your entire payroll system.
  • If you need a full ERP: FOUNDATION Software is the industry standard. Pair it with hh2 for mobile and field capabilities. Budget accordingly.
  • If you're a small contractor (5–50 employees): This is where the market has underserved you. Enterprise tools are overkill. Agency portals don't help you prepare. BaconAI was built specifically for this gap — AI-powered compliance checking at a price point that makes sense for small operations.

Need to fill out a WH-347 right now?

Use our free online generator — auto-calculated fields, compliant PDF output.

Fill Out WH-347 Free

What AI Compliance Checking Actually Means

Most certified payroll errors aren't intentional fraud — they're honest mistakes. Common examples include:

  • A worker classified as a "Laborer" who actually performs "Carpenter" duties
  • A fringe benefit rate from last year's wage determination applied to this year's project
  • Overtime calculated on the base rate instead of the prevailing rate

These errors repeat every week until someone catches them. When the DOL catches them, you owe back wages for every affected payroll period.

That's the cost of manual processes with no error checking — and it's why understanding Davis-Bacon penalties matters.

How AI checking works

AI compliance checking means your certified payroll data is validated against the actual wage determination for your project before you submit. BaconAI checks classifications, rates, fringe splits, and overtime calculations automatically. It flags problems before they become violations.

The Small Contractor Problem

Here's the core issue: the certified payroll software market was built for the wrong customer. Agencies needed compliance portals. Enterprises needed ERPs. Mid-market contractors needed full payroll systems.

But the small contractor — the electrical sub with 12 employees, the concrete crew with 8, the HVAC outfit running their third federal project — got nothing built for them.

They end up filling out WH-347 forms in Excel or paying for software that was designed for a company ten times their size.

That's the gap BaconAI is built to fill. Not a full payroll system. Not an agency portal. A focused tool that helps small contractors generate compliant certified payroll reports, catch errors before submission, and stay on the right side of DOL enforcement.

Getting Started

If you're currently doing certified payroll manually or struggling with software that wasn't built for your size, here are two immediate steps:

  1. Try the free WH-347 generator. Our free WH-347 tool lets you fill out certified payroll forms online with auto-calculated fields and compliant PDF output. No account required. Use it today.
  2. Join the BaconAI waitlist. The full platform — with AI compliance checking, multi-project management, and audit-ready record storage — is coming soon. Get early access and launch pricing by joining the waitlist.

Certified Payroll Software FAQ

What is certified payroll software and why do I need it?

Certified payroll software automates the creation, validation, and submission of WH-347 certified payroll reports required on Davis-Bacon and prevailing wage projects. Without it, you are filling out complex government forms manually every week, which increases the risk of classification errors, math mistakes, and missed deadlines that can trigger DOL investigations and back-wage liability.

Can I use QuickBooks or ADP for certified payroll?

QuickBooks and ADP handle general payroll processing — paying your workers and filing taxes. They do not generate WH-347 certified payroll reports, validate worker classifications against wage determinations, or calculate fringe benefit splits. You still need a dedicated certified payroll tool alongside your regular payroll system.

How much does certified payroll software cost?

Pricing ranges widely. Enterprise systems like FOUNDATION Software can cost $50,000 or more to implement. Mid-market tools like Points North and LCPtracker typically charge per-project or per-user fees that vary by volume. BaconAI is $299 per month with no implementation cost, designed specifically for small contractors who need compliance without enterprise complexity.

What should I look for when choosing certified payroll software?

Focus on five factors: Does it generate compliant WH-347 forms? Does it validate worker classifications against your wage determination? Can you set it up yourself without a consultant? Does the pricing make sense for your crew size? And does it flag errors before you submit, rather than after an investigator finds them?

Is there free certified payroll software available?

There are free tools for generating individual WH-347 forms — BaconAI offers a free WH-347 generator at getbaconai.com/tools/wh-347-generator that auto-calculates fields and produces compliant PDFs. However, full certified payroll management with ongoing compliance checking, record storage, and multi-project tracking typically requires a paid subscription.

Try the Free WH-347 Generator

Auto-calculated fields, proper formatting, compliant PDF output — no account required.