A Contractor’s Guide to Certified Payroll

Key Takeaways

• Certified payroll is required on government-funded construction projects and ensures that workers are paid prevailing wages as mandated by federal laws like the Davis-Bacon Act. These wages vary by job type and location to promote fair compensation.
• Form WH-347 is the standard reporting form used to document key payroll details, including worker classification, hours worked, pay rates, deductions, and net wages. Submitting accurate and complete reports weekly is critical for compliance.
• Mistakes or omissions on certified payroll reports can result in penalties, withheld payments, or disqualification from future projects. The accompanying Statement of Compliance carries legal weight, so contractors must ensure the truthfulness of all submitted data.
• Each state may have its own certified payroll regulations in addition to federal requirements, particularly for state-funded projects. Contractors must stay current on local laws and use the correct forms and processes.
• Using certified payroll software can streamline compliance, especially for contractors managing multiple projects or working across different states. These tools help automate reporting, minimize errors, and reduce the administrative burden.

Key Elements of Certified Payroll

Certified payroll is a specialized form of payroll reporting required for some government-funded projects, particularly in the construction industry. Here are some key points about it:

Prevailing Wage Requirements

Certified payroll ensures that workers are paid, at minimum, prevailing wages set by the government for each type of work and in each geographic area. This is to ensure fair pay on public projects.

Davis-Bacon Act

In the United States, this requirement mainly stems from the Davis-Bacon Act. This act mandates that contractors and subcontractors on federally funded or assisted construction projects pay their laborers and mechanics at least the locally prevailing wages and benefits paid on similar projects.

Detailed Reporting

Certified payroll reports are more detailed than standard payroll reports. They include information like:

• Worker’s name
• Identification number
• Hours worked
• Job classification
• Payroll no
• Total wages paid
• Gross earnings
• Work classification
• Employee benefits
• Project or contract no
• Company information
• Rate of pay
• Deductions
• Net Wages
• Contractor or subcontractor
• Employee information
• Hours worked
• Project and location
• Statement of compliance
• Address
• Name and address of employee
• Public records
• Weekly Calendar
• For week ending
• Withholdings Date

Form WH-347

Contractors typically use this standardized form in the U.S. for certified payroll reporting. This form reports the wages paid to each worker, their classifications, hours worked, deductions, and actual wages paid.

Weekly Submission

Contractors usually need to submit these reports weekly. Contractors who process payroll biweekly may have to process payroll each week. Failure to comply with the reporting requirements can lead to penalties, withheld payments, or disqualification from future government contracts.

Public Access

Certified payroll records are often required to be kept available for public inspection. This transparency ensures compliance with labor standards on public works projects.

Payroll Software Solutions

There are specialized software solutions available that can help contractors manage certified payroll reporting more efficiently, ensuring compliance with complex requirements. Contracting business management software such as Total Office Manager® from Aptora Corporation includes Certified Payroll capabilities.

Explaining Form WH-347

Form WH-347, issued by the U.S. Department of Labor, is a standardized form used for submitting certified payroll reports on federally funded construction projects. Here are some detailed aspects of Form WH-347:

Purpose

The form is used to comply with the reporting requirements of the Davis-Bacon Act, which requires contractors and subcontractors to pay their laborers and mechanics prevailing wage rates. The form serves as proof that the workers on a project are being paid in accordance with these standards.

Contractor’s and Subcontractor’s Information

This includes the name and address of the contractor or subcontractor, the project name, and the contract number.

Employee Information

Each employee’s name, address, and Social Security Number or identifying number are listed.

Work Classification

The specific type of work or trade each employee is engaged in (e.g., electrician, plumber).

💡 Tip: Double-Check Wage Classifications – Using the wrong job classification can lead to underpayment and noncompliance penalties. Always match each worker’s duties with the correct classification from the wage determination included in your contract—and if a worker performs multiple roles, report each one with corresponding hours separately.

Hours Worked

The form requires a detailed account of the number of hours worked each day by each employee, including overtime hours.

Rates of Pay

This includes the rate of pay for each employee, including any fringe benefits or cash equivalents.

Deductions

All deductions made from the employee’s wages, such as taxes, insurance, or union dues, are itemized.

Total Wages Paid

The gross wages and net wages paid to each employee during the pay period.

Frequency of Submission

The form is typically required to be completed and submitted weekly. Be sure to check on your company’s requirements.

Public Records

The completed forms are considered public records. They must be kept on file by the contractor for three years after the completion of the contract and must be made available for inspection by authorized representatives of the Department of Labor.

Electronic Submission

In many cases, contractors can complete and submit Form WH-347 electronically, which can simplify the process and reduce errors.

Importance of Accuracy

It’s critical that the information on Form WH-347 is accurate and complete. Any falsification or misrepresentation can lead to serious legal and financial penalties.

For businesses like HVAC, plumbing, electrical and other contractors working on government-funded projects, understanding and properly utilizing Form WH-347 is crucial to ensure compliance with labor laws and to avoid potential legal issues. Software solutions that assist in managing and automating this process can be particularly valuable in reducing the administrative burden and ensuring accuracy.

💡 Tip: Schedule Regular Internal Audits – Conduct internal audits of your certified payroll submissions at regular intervals to catch errors or compliance gaps early. Even small mistakes—like misclassifying overtime or missing signatures—can trigger red flags during external reviews. Having a routine compliance check process helps avoid costly corrections or penalties later.

Instructions For Completing Certified Payroll Form WH-347

General

Form WH-347 is a helpful, optional tool that contractors and subcontractors can use to submit their certified weekly payrolls when working on federal or federally funded construction projects. When filled out correctly, this form meets the certified payroll reporting requirements under parts 3 and 5 of Title 29 of the Code of Federal Regulations (CFR), which apply to contracts covered by the Davis-Bacon and Related Acts (DBRA).

Although using the WH-347 form isn’t mandatory, submitting weekly payroll reports is required for all covered contractors and subcontractors. This requirement comes from the Davis-Bacon regulations and the Copeland Act (40 U.S.C. § 3145), which mandates that you provide a weekly statement showing the wages paid to each employee during the previous workweek.

The U.S. Department of Labor (DOL) regulations—specifically 29 CFR 5.5(a)(3)(ii)—require that these certified payrolls be submitted to the relevant federal agency (or to the appropriate sponsor, owner, or applicant, if the agency isn’t a direct party to the contract). Each submission must include a signed “Statement of Compliance”—either page 2 of the WH-347 or a document with identical wording. This statement confirms that the payroll is accurate and complete and that all workers have been paid no less than the prevailing Davis-Bacon wage rates, including fringe benefits, for the work they performed.

Federal agencies and the DOL use this information to verify that employees are being paid fairly and in accordance with the law.

Under the DBRA, contractors and subcontractors are required to pay at least the prevailing wage (including fringe benefits) as determined by the DOL. Fringe benefits can be provided through contributions to bona fide benefit plans or paid directly to workers in cash if no plan is offered.

The WH-347 form includes all necessary fields to document what each worker was paid—whether in cash, benefits, or both—and includes a section for the contractor or subcontractor to certify that the information is accurate. The Statement of Compliance (on page 2) also confirms that workers, including apprentices, are receiving the appropriate wages and benefits, and that payroll records are being properly maintained.

Explaining Each Field on the WH-347 Form

The WH-347 form is a standardized payroll reporting tool required for contractors and subcontractors working on federally funded construction projects. Below is a breakdown of how to properly complete each section of the form, reflecting current U.S. Department of Labor guidance.

General Information

• Contractor or Subcontractor: Enter your company’s full legal name. Check the box indicating whether you are the contractor or a subcontractor.
• Address: Include your firm’s mailing address.
• Payroll No.: Assign a sequential number to each weekly payroll submission, beginning with “1”.
• For Week Ending: Indicate the last date of the workweek being reported.
• Project and Location: Specify the name and physical location of the project.
• Project or Contract Number: Enter the corresponding project or contract identifier.

Payroll Columns Explained

• Column 1 – Name and Last Four of SSN: List each employee’s full name and the last four digits of their Social Security Number or other unique identifier.
• Column 2 – Withholding Exemptions: Optional. This column is for the employer’s internal use and is not required for federal compliance.
• Column 3 – Work Classification: Identify the job title or classification for each worker based on the duties performed. Use classifications from the wage determination included in your contract. If a worker performs multiple types of work, list each classification with corresponding hours separately.
• Column 4 – Hours Worked: Report daily and weekly hours by type—straight time or overtime. Overtime hours must be shown separately and apply to time worked beyond 40 hours in a week, as required by the Contract Work Hours and Safety Standards Act.
• Column 5 – Total Hours: Add up all hours worked during the week (both straight time and overtime).
• Column 6 – Rate of Pay (Including Fringe Benefits):
  • For straight time: Show the base hourly rate plus any cash paid in lieu of fringe benefits (e.g., “$25.00 + $4.00”).
  • For overtime: Indicate the total overtime rate, which must be at least time and one-half the base rate. Include fringe benefits or cash equivalents as applicable.
• Column 7 – Gross Wages Earned: Record total gross earnings on this project for the week. If the employee worked on multiple projects, list federal project earnings first, followed by total gross earnings for the week (e.g., “$600.00 / $950.00”).
• Column 8 – Deductions: Show all deductions from gross pay, including taxes, insurance, and any other authorized deductions. If more than five deductions are applied, list the first four, categorize others as “Other,” and itemize those on an attachment.
• Column 9 – Net Wages Paid: Enter the amount paid to the employee after deductions.

Totals (Optional)

You may total the figures at the bottom of the columns to summarize payroll for the week, though this is not required.

Statement of Compliance (Back of Form)

This signed declaration confirms that payroll complies with labor standards under the Davis-Bacon and Related Acts. It must be completed and signed each time a payroll is submitted.

• Items 1 and 2 – Deductions Description: If all deductions are fully described in Column 8, you may simply write “See Deductions column in this payroll.”
• Item 4 – Fringe Benefits:
  • (a) Benefits Paid to Plans: If fringe benefits are fully paid to approved plans or programs, show only the basic rate on the form and check box 4(a).
  • (b) Benefits Paid in Cash: If fringe benefits are paid directly to employees in cash, add those amounts to the straight time rate and check box 4(b).
  • (c) Exceptions: If fringe benefits are partially paid to plans and partially in cash, list the craft, amount paid to plans, and amount paid as cash per hour. This must be clearly reported to ensure full compliance with the wage determination.

Contractors are legally responsible for ensuring that all workers are compensated according to the prevailing wage and fringe benefit requirements. Falsification of payroll records is subject to federal penalties.

💡 Tip: Use a Digital Signature Workflow – Many compliance issues stem from missing or incorrect “Statement of Compliance” signatures. A digital workflow that automates signature collection and timestamps submissions can reduce admin time, prevent delays, and improve audit readiness—especially when managing multiple projects or subcontractors.

Stay up to date with the latest guidelines by visiting: Instructions For Completing Davis-Bacon and Related Acts Weekly Certified Payroll Form, WH-347

Individual State Reporting Requirements for Certified Payroll

Many states in the U.S. have their own specific prevailing wage and certified payroll reporting requirements, often in addition to the federal standards set by the Davis-Bacon Act. These state-specific regulations are generally in place for state-funded construction projects and can vary significantly from state to state. Here’s a general overview:

Certified Payroll Forms by State

Disclaimer: The information provided in this article and table is for general informational purposes only and is subject to change. While we strive for accuracy, some details—such as form numbers, submission methods, or prevailing wage applicability—may vary by project, agency, or changes in law. This article also includes adapted content from the U.S. Department of Labor; Aptora makes no claim of copyright to the original material. Always consult your contracting agency or legal advisor to confirm current requirements before proceeding.

For businesses operating in multiple states, understanding and complying with these diverse requirements can be challenging, but specialized software (like Aptora’s Field Service Payroll Software) that can adapt to different state requirements can be very useful! Request your demo today!

FAQs

1. What’s the difference between certified payroll and regular payroll?

Certified payroll is a specific reporting format required for public works projects, detailing wages, classifications, and hours in compliance with prevailing wage laws. Regular payroll is internal and typically only used for company accounting and tax purposes. Certified payroll must follow strict federal or state guidelines and is often subject to public inspection. It also includes a signed Statement of Compliance, which regular payroll does not.

2. What happens if a contractor doesn’t submit certified payroll on time?

Failure to submit certified payroll reports on time can lead to withheld payments, contract violations, and possible debarment from future government contracts. The agency may delay or refuse to process contractor invoices until the reports are received. In severe cases, legal penalties or audits may follow. Consistent on-time submissions are essential for maintaining eligibility for government-funded projects.

3. Are apprentices included in certified payroll reporting?

Yes, apprentices must be included in certified payroll reports and identified as such in the “Work Classification” field. However, they must be registered in a bona fide apprenticeship program recognized by the U.S. Department of Labor. Their wage rates can differ from journeymen, but proper documentation must be maintained and available for inspection.

4. How can contractors stay compliant when working across multiple states with different rules?

Contractors should familiarize themselves with each state’s certified payroll laws, which may have different forms, submission platforms, and fringe benefit rules. Using multi-jurisdictional payroll software that accommodates federal and state-specific requirements is highly recommended. Additionally, designating a compliance officer or payroll manager to track regulation changes can help avoid costly errors.