Understanding Certified Payroll: A Contractor’s Guide to Compliance

Understanding Certified Payroll: A Contractor’s Guide to Compliance

If you’re a contractor bidding on public works jobs, certified payroll compliance isn’t optional—it’s required. Navigating it correctly ensures you stay eligible for contracts, avoid costly fines, and protect your company’s reputation.

What is Certified Payroll?

Certified payroll is a special type of reporting required for contractors on public projects funded by federal, state, or local agencies. It’s designed to enforce wage laws like the Davis-Bacon Act and ensure workers are paid prevailing wages.

Why Does Compliance Matter?

Failing to comply can lead to serious consequences: withheld payments, fines, contract loss, even debarment. That’s why accurate, timely certified payroll reports are non-negotiable.

How to Complete a Certified Payroll Report

Typically, you’ll use the WH-347 form for federal projects. This form records worker classifications, hours, pay rates, gross pay, deductions, and net wages. Each week, you submit it to prove you’re paying at least prevailing wage rates.

Common pitfalls include:

·  Misclassifying workers

·  Missing fringe rate calculations

·  Inaccurate hours or deductions

·  Late submissions

Staying Audit-Ready

Good compliance isn’t just about filling out forms—it’s about documentation. Keep detailed records of timecards, wage determinations, and communications. Being audit-ready saves headaches if an agency reviews your books.

How My Construction Payroll Can Help

We specialize in contractor payroll. Our team ensures your reports are accurate, on-time, and compliant. You focus on building; we handle the paperwork.

✅ Ready to simplify certified payroll? [ CLICK HERE ]

External resource: WH-347 Form & Instructions (dol.gov)