What Is Certified Payroll?
Certified payroll is a weekly report proving that everyone on a government-funded construction project was paid at least the required prevailing wage for their work. On federal projects it's filed on Form WH-347 and signed under a Statement of Compliance.
Why it exists: the Davis-Bacon Act
The Davis-Bacon Act requires contractors and subcontractors on federally funded or assisted construction contracts over $2,000 to pay laborers and mechanics no less than the locally prevailing wages and fringe benefits, as determined by the Department of Labor. Certified payroll is how you prove you did.
Who has to file
Any contractor or subcontractor performing covered work on a Davis-Bacon (or Davis-Bacon Related Act) project. Many states have their own "little Davis-Bacon" laws for state-funded public works with their own reporting — California's DIR eCPR system is the best-known example, and it sits on top of the federal rules.
What's required every week
- A payroll report (the WH-347 or an equivalent) for each week any covered work is performed.
- A signed Statement of Compliance.
- Correct prevailing wage (base rate) and fringe benefits for each classification.
- A "no work" payroll for weeks with no covered work, so the numbering has no gaps.
Prevailing wage and fringe, briefly
The prevailing wage for a classification has two parts: a base hourly rate and an hourly fringe benefit amount. You can meet the fringe obligation by paying into bona fide benefit plans, paying the equivalent in cash, or a combination. Fringe handling is where most contractors slip up — see our fringe benefits guide.
What happens if you get it wrong
Non-compliance can lead to withheld contract payments, back-wage liability, liquidated damages, and — in serious cases — debarment from future government contracts. Late or missing certified payroll can also hold up your progress payments.