What Is a Certified Payroll Report?
— WH347.io Team
If you've just won your first federal construction contract, you'll hear the term 'certified payroll' a lot. Here's exactly what it is, who has to file it, what it contains, and what happens if you get it wrong.
A certified payroll report is a weekly payroll record that federal contractors and subcontractors are required to submit to prove they're paying workers the correct prevailing wages on government-funded construction projects. It's not a standard pay stub or a general ledger export — it's a specific legal document that shows, worker by worker, exactly what was paid, what was deducted, and how many hours were worked on the federal job.
The official form is the WH-347, published by the Department of Labor's Wage and Hour Division. It's two pages: the payroll table on page one, and the Statement of Compliance on page two. When you sign the Statement of Compliance, you're certifying under penalty of law that the information is accurate and complete.
Who Has to File a Certified Payroll Report?
Any contractor or subcontractor working on a federally funded or federally assisted construction project that is subject to the Davis-Bacon Act must submit certified payroll reports. This includes:
- Prime contractors on federal construction contracts over $2,000.
- Every subcontractor on those same projects, regardless of contract size or tier.
- Contractors on federally assisted projects — including projects funded through HUD, FHWA, FTA, or similar agencies — where Davis-Bacon requirements are written into the contract.
- State and local contractors on projects funded by federal grants, such as highway construction funded by federal transportation dollars.
If your contract documents reference the Davis-Bacon Act, include a wage determination, or require submission of certified payroll — you're covered, and so is every sub you hire.
What Is the Davis-Bacon Act?
The Davis-Bacon Act, passed in 1931, requires that workers on federal construction projects be paid no less than the prevailing wage for their trade and locality. 'Prevailing wage' is determined by the Department of Labor through wage surveys — it's essentially the going rate for a given trade in a given county or metropolitan area. A carpenter in rural Indiana has a different prevailing wage than a carpenter in San Francisco. The DOL publishes these rates in wage determinations, which are incorporated into each federal contract.
Certified payroll reports are the enforcement mechanism for Davis-Bacon. They're how the government verifies, week by week, that the prevailing wage is actually being paid. Without the reporting requirement, there would be no practical way to audit compliance across thousands of active federal job sites.
What Goes on a Certified Payroll Report?
Frequently Asked Questions
What is a certified payroll report?
A certified payroll report is a weekly legal document that federal contractors submit to prove they are paying workers the required prevailing wages on government-funded construction projects. The official form is the WH-347, published by the Department of Labor.
Who has to submit certified payroll reports?
Any contractor or subcontractor working on a federal construction project subject to the Davis-Bacon Act must file certified payroll reports. This includes prime contractors, all subcontractors, and contractors on federally assisted projects where Davis-Bacon requirements are incorporated into the contract.
When are certified payroll reports due?
Certified payroll reports are due within seven days of the regular payday for the work week covered. Most agencies require weekly submission. The exact deadline and method are specified in your contract documents.
What is the WH-347 form?
The WH-347 is the official certified payroll form published by the Department of Labor's Wage and Hour Division. It contains a weekly payroll table for all workers on a federal project and a Statement of Compliance that the contractor signs to legally certify the accuracy of the data.
What happens if you don't submit certified payroll?
Failure to submit certified payroll can result in withheld progress payments, back wage orders, and in cases of willful or repeated violations, debarment from federal contracting for up to three years. Knowingly falsifying a certified payroll report is a federal crime.
Do subcontractors have to file their own certified payroll?
Yes. Every subcontractor on a covered project files their own certified payroll reports for their own workers. The prime contractor is responsible for ensuring all subs are in compliance and can be held liable if a sub fails to pay prevailing wages.