Certified Payroll Reporting Made Simple

Frequently Asked Questions

Everything you need to know about Certified Payroll Reporting.

What is Certified Payroll Reporting?

Certified Payroll Reporting is a mandatory process for contractors and subcontractors working on federally funded or assisted construction projects, often under the Davis-Bacon and Related Acts. It involves submitting detailed weekly payroll records (typically using Form WH-347) to prove that all laborers and mechanics are paid no less than the locally prevailing wages and fringe benefits for their work.

Who needs to submit Certified Payroll Reports?

Generally, any contractor or subcontractor performing work on a public works project that is funded, in whole or in part, by federal funds (or in some cases, state funds) is required to submit certified payroll reports. There might be project value thresholds or specific exemptions depending on the jurisdiction.

Why is Certified Payroll Reporting so important?

It's critical for several reasons:

Compliance: Ensures adherence to prevailing wage laws and protects workers from unfair compensation.
Avoiding Penalties: Non-compliance can lead to severe penalties, including withheld payments, fines, debarment from future government contracts, and even legal action.
Project Continuity: Timely and accurate submissions prevent project delays and ensure continued funding.

What information is included in a Certified Payroll Report?

A typical certified payroll report (like Form WH-347) requires detailed information for each employee, including:

Full name and Social Security Number
Work classification (e.g., carpenter, electrician)
Hours worked daily and weekly (straight time and overtime)
Rate of pay (which must meet prevailing wage)
Gross earnings
All deductions (taxes, benefits, etc.)
Net wages paid
Project name and number, and company information.

How often do I need to submit Certified Payroll Reports?

Certified Payroll Reports are typically required weekly from the commencement of work on the covered project until its completion. Even if no work was performed in a given week, a "Statement of No Work" or similar report usually needs to be filed.

Can I submit Certified Payroll Reports electronically?

Yes, many federal and state agencies now accept or even require electronic submission of certified payroll reports. Our solution is designed to facilitate easy electronic filing.

What are "prevailing wages" and "fringe benefits"?

Prevailing Wages are the minimum hourly wage rates (including benefits) that contractors must pay to workers on government-funded projects. These rates are determined by the Department of Labor (DOL) for specific job classifications and geographic areas. Fringe Benefits are additional benefits provided to employees, such as health insurance, retirement contributions, and paid leave, which can be counted towards the prevailing wage obligation.

What happens if I make a mistake on a Certified Payroll Report?

Errors can lead to audits, inquiries, withheld payments, and penalties. It's crucial to correct any mistakes promptly. Our system helps minimize errors through automation and validation, and provides tools for easy corrections if needed.

How can your solution help me with Certified Payroll Reporting?

Our solution automates data collection, accurately calculates prevailing wages and fringe benefits, generates audit-ready Form WH-347 and state-specific reports, and facilitates electronic submission. It significantly reduces manual effort, minimizes errors, and ensures compliance, saving you time and mitigating risk.

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