What Is a Certified Payroll Report & When Is It Required?

A Certified Payroll Report is a specialized document that contractors and subcontractors engaged in government-funded or regulated construction projects must submit. This report proves workers are paid according to prevailing wage laws, ensuring compliance with federal labor standards and upholding fair labor practices.

Understanding Certified Payroll Reports

A Certified Payroll Report details wages paid to laborers and mechanics on public construction projects, verifying employees receive fair wages and benefits mandated by prevailing wage laws like the federal Davis-Bacon Act. The “certified” aspect means the report is a sworn statement, affirming accuracy under penalty of perjury.

This protects workers from underpayment and ensures contractors adhere to wage regulations. The Davis-Bacon Act requires contractors on federal projects over $2,000 to pay prevailing wages and fringe benefits, preventing unfair bidding advantages.

When Certified Payroll Reports are Required

Certified Payroll Reports are primarily required for contractors and subcontractors working on federally funded or federally assisted construction projects. This mandate applies to contracts exceeding $2,000 for the construction, alteration, or repair of public buildings or public works. Projects can include building schools, repairing highways or bridges, or tasks like painting, decorating, or electrical work.

The requirement stems from federal legislation, most notably the Davis-Bacon and Related Acts. Many states have their own “Little Davis-Bacon Acts” that impose similar prevailing wage and certified payroll requirements for state-funded public works. Failure to submit these reports on time can lead to penalties, including the withholding of contract funds or ineligibility for future projects.

Information Needed for Certified Payroll Reports

Completing a Certified Payroll Report requires specific employee and project data. For each employee, the report includes their full name, an identifying number, and job classification. The job classification must align with prevailing wage determinations for the project’s location.

The report also details daily and weekly hours worked, separating straight time from overtime. It specifies the hourly rate of pay, gross wages, and all deductions, such as taxes, insurance, or union dues, culminating in net wages. Fringe benefits provided, along with their cash equivalent or how they are funded, must also be documented.

Project-specific information, including the project name, number, location, and the applicable wage determination number, is necessary. The standard federal form for this reporting is the WH-347.

Filling Out the Certified Payroll Report

Once all necessary information is collected, transfer this data onto the official Certified Payroll Report form, typically Form WH-347. The form begins with sections for general project and contractor details, including the project name, number, and the contractor’s or subcontractor’s business name and address. A sequential payroll number must be assigned to each weekly submission, starting with “1” for the first week of the contract. The week ending date for the pay period is also a required entry.

For each employee, specific columns are dedicated to their name, work classification, and daily hours worked, totaling weekly hours. The hourly rate of pay, gross wages, and a breakdown of all deductions must be entered. Fringe benefits, whether paid in cash or contributed to benefit plans, also have designated fields, requiring details on their value.

The “Statement of Compliance” section requires a signature from an authorized agent. This certifies that the reported information is accurate and that all workers received the required prevailing wages and fringe benefits.

Submitting the Certified Payroll Report

After completing the Certified Payroll Report, submit the document to the appropriate entity. For federal projects, this means submitting to the contracting agency or the prime contractor, who ensures all subcontractors’ reports are submitted. Submission methods vary, including mail, electronic upload, or in-person delivery.

The frequency of submission is generally weekly, even if no work occurred during a particular week, to maintain a continuous record for the project duration. Timely submission is important, as late or incomplete reports can result in the withholding of payments or other penalties.

Contractors must retain copies of certified payroll reports and supporting documentation for a specified period, generally at least three years after project completion for federal jobs. Some state requirements or contract terms may mandate longer retention periods, sometimes up to seven years, to accommodate audits or disputes. These records are subject to review by the Department of Labor or contracting agencies to confirm compliance with prevailing wage laws.