Certified payroll is the weekly report contractors and subcontractors submit on prevailing wage projects. On federal Davis-Bacon jobs, it’s commonly prepared on the U.S. Department of Labor’s form WH-347 (or an equivalent format) and includes each worker’s name, identifying information, labor classification, hours worked each day, rate of pay, fringe benefits, deductions and net pay. It comes with a signed Statement of Compliance certifying the information is correct.
Why it matters
The signature carries legal weight. Falsifying certified payroll can lead to withheld payments, back wages, debarment from federal work and criminal penalties. Prime contractors are responsible for collecting and submitting their subcontractors’ payrolls too, so one sloppy sub can hold up a GC’s payment. Many states and cities have their own prevailing wage laws with their own reporting formats.
Worked example
Illustrative: on a federally funded clinic project, an electrician classified as “Electrician” under the wage determination must be paid at least the listed base rate plus fringe. If the determination lists $48.50 base and $24.10 fringe, the contractor can pay $72.60 in cash, or pay fringes into bona fide plans and the rest in cash. The weekly WH-347 has to show which.
Common mistakes
- Misclassifying workers, such as paying an electrician as a laborer.
- Missing weekly deadlines because subcontractor payrolls arrive late.
- Not reconciling certified payroll to the actual payroll register.
How os.construction handles it
We’re exploring certified payroll reporting with founding contractors that do public work; it’s planned, not built. The goal is to generate it from the same timecards and classifications used in job cost.