What Is Certified Payroll? A Contractor's 2026 Guide to WH-347, Davis-Bacon, and Prevailing Wage

Certified payroll is the weekly reporting obligation that trips up more contractors than almost any other compliance requirement in construction. The concept sounds straightforward: submit a report each week showing that every worker on a federally funded project was paid the correct prevailing wage. In practice, certified payroll involves detailed documentation of worker classifications, hourly rates, fringe benefit payments, hours worked by day, deductions, and net pay, all filed with a signed statement that the information is accurate and complete. Errors do not just create paperwork problems. Incorrect filings can trigger back-wage assessments, liquidated damages, and potential debarment from future federal contracts.

For specialty trade contractors taking on their first Davis-Bacon project, or experienced contractors looking to tighten their process, here is a plain-language breakdown of what certified payroll requires, how the WH-347 form works, and where the reporting connects to the rest of the payroll operation.

What Certified Payroll Is and When It Applies

Certified payroll is a weekly report that documents the wages paid to every laborer and mechanic working on a construction project subject to the Davis-Bacon and Related Acts (DBRA). The report must demonstrate that each worker received at least the prevailing wage rate, including any required fringe benefits, for their trade classification in the project's geographic area.

Which Projects Require Certified Payroll

Certified payroll is generally required on federal construction contracts valued at $2,000 or more and on federally assisted construction projects subject to Davis-Bacon wage standards. Many state and local governments have their own prevailing wage laws that also require certified payroll filings, sometimes using different forms or formats. Contractors should confirm the specific reporting requirements with the contracting agency for each project, as obligations vary by funding source and jurisdiction.

The Legal Basis

The Copeland Act (40 U.S.C. § 3145) requires contractors and subcontractors on covered federal projects to furnish a weekly statement of wages paid to each employee during the prior week. The Davis-Bacon Act establishes the prevailing wage requirement itself, and the DOL regulations at 29 C.F.R. Part 3 and Part 5 set the specific reporting standards. Both prime contractors and every tier of subcontractor on a covered project must submit certified payroll reports.

The WH-347 Form: What It Requires

Form WH-347 is the U.S. Department of Labor's standard certified payroll form. While use of the WH-347 form itself is optional, the information it captures is mandatory. Contractors who use an alternative format must include all the same data fields. Most contracting agencies accept or require the WH-347, making it the practical standard.

Key Data Fields on the WH-347

The DOL revised the WH-347 in January 2025 with a clearer layout and several new requirements. The current version (OMB No. 1235-0008) requires the following for each worker, each week:

• Worker identification. Name, identifying number, and a designation of Journeyworker (J) or Registered Apprentice (RA), a field added in the 2025 revision.

• Labor classification. The specific trade classification matching the applicable wage determination. A worker performing electrical work must be classified as an electrician, not listed under a generic labor category.

• Hours worked. Daily hours broken out by straight time and overtime for each day of the reporting week. The daily breakdown is critical because it supports verification of overtime compliance under both federal and state rules.

• Rate of pay. The basic hourly rate and the overtime rate paid. On prevailing wage projects, the basic rate must meet or exceed the rate listed in the applicable wage determination.

• Fringe benefits. The hourly fringe benefit amount, whether paid as bona fide benefit contributions (health insurance, pension, training funds) or as cash in lieu of benefits. The 2025 revision requires more detailed fringe benefit reporting, including specific hourly rates and payment methods.

• Gross and net pay. Total gross wages for the week, all deductions, and the net amount paid to the worker.

The Statement of Compliance

Every certified payroll submission must include a signed Statement of Compliance (page 2 of the WH-347 or equivalent language). The signature certifies that the payroll information is accurate, that every worker was paid at least the applicable prevailing wage including fringe benefits, and that no prohibited deductions were made. The statement must bear an original ink signature from the contractor's owner, officer, or authorized designee. Falsifying the Statement of Compliance can result in criminal penalties under the Copeland Act.

How Prevailing Wage Connects to Certified Payroll

Certified payroll reporting does not exist in isolation. The report is the documentation layer that proves the contractor met its prevailing wage obligations. Getting certified payroll right starts with getting prevailing wage compliance right.

Wage Determinations

Before work begins, the contractor must identify the applicable wage determination for the project. Wage determinations are issued by the DOL and specify the basic hourly rate and fringe benefit rate for each trade classification in a given geographic area. A single project may involve multiple wage determinations if it spans different types of construction (building, heavy, highway, residential). Payroll systems must apply the correct determination to each worker based on their classification and the project type.

Fringe Benefit Compliance

The prevailing wage obligation includes both the basic hourly rate and the fringe benefit rate. Contractors can meet the fringe requirement through bona fide benefit contributions, cash payments in lieu of benefits, or a combination of both. Regardless of how fringe obligations are met, the certified payroll report must document the method and amount for each worker. Fringe benefits must be paid for all hours worked, including overtime hours, though the overtime premium applies only to the basic hourly rate, not the fringe portion.

Worker Classification Accuracy

Incorrect trade classifications are one of the most frequent certified payroll findings. A worker performing journeyman-level electrical work who is classified as a laborer on the certified payroll creates a wage violation, because the laborer rate is typically lower than the electrician rate. Classifications must reflect the actual work performed, and the onboarding process should capture accurate trade data from the start so it flows correctly into payroll and certified payroll reporting.

Common Certified Payroll Mistakes

Certified payroll errors tend to cluster around a few recurring issues. Most originate not in the filing itself but in the data that feeds it.

Mismatched Hours Between Field Records and Payroll

When daily shift reports are submitted on paper and manually transcribed into payroll, discrepancies between field records and the certified payroll filing are common. A worker logged for 42 hours in the foreman's notes but entered as 40 in payroll creates an underpayment and a filing error. Digital field reporting tools that feed hours directly into payroll eliminate this transcription gap.

Missing or Incorrect Fringe Benefit Documentation

Contractors who pay fringe benefits as cash in lieu of plan contributions must still document the payment on the certified payroll. Omitting the fringe line or reporting it as part of the base rate rather than separately is a common error that complicates audit review. The fringe benefit amount, method of payment, and applicable rate should be clearly reported for each worker.

Late or Missing Submissions

Certified payroll is due weekly. Contractors who submit late, skip weeks, or fail to file for weeks when no work was performed (a "no work performed" report is still typically required) risk enforcement action and payment withholding. Establishing a consistent filing cadence tied to the payroll cycle prevents gaps.

Filing Without Reviewing the Wage Determination

Wage determinations can be updated during the life of a project. Contractors who apply the initial wage determination throughout the project without checking for modifications may underpay workers and file inaccurate certified payrolls. Verify the applicable rates before each filing period, especially on long-duration projects.

Building a Certified Payroll Process That Holds Up

Clean certified payroll starts upstream, not at the point of filing. When worker classifications are accurate in the HR system, field hours are captured digitally and tagged to the correct project and trade, and payroll applies the right wage determination automatically, the certified payroll report assembles itself from data that was correct at every step. When any of those inputs are manual or disconnected, the filing becomes a weekly reconstruction exercise that consumes hours and introduces risk.

Trayd's certified payroll and prevailing wage tools are built into the payroll engine, not layered on after the fact. Worker classifications, field hours, wage determinations, and fringe benefit calculations flow through one system, producing certified payroll reports that are accurate because the underlying data is accurate. Book a demo to see how certified payroll works alongside daily field reporting and construction payroll.

Frequently Asked Questions

What is certified payroll in construction?

Certified payroll is a weekly report documenting that every worker on a covered construction project was paid at least the applicable prevailing wage, including fringe benefits. The report must be accompanied by a signed Statement of Compliance.

When is certified payroll required?

Certified payroll is generally required on federal construction contracts valued at $2,000 or more under the Davis-Bacon Act. Many state and local prevailing wage laws also require certified payroll filings on publicly funded projects.

Is the WH-347 form mandatory?

Use of the WH-347 form itself is optional, but the information it captures is mandatory on covered projects. Most contracting agencies accept or require the WH-347 as the standard format.

What happens if certified payroll is filed incorrectly?

Errors can result in back-wage assessments, liquidated damages under the CWHSSA, withholding of contract payments, and potential debarment from future federal contracts for up to three years. Contractors should consult their compliance team before submitting.

How often must certified payroll be submitted?

Weekly. Reports are due for each week in which work is performed. Many agencies also require a "no work performed" submission for weeks when no covered work occurred.

What is the most common certified payroll mistake?

Incorrect trade classifications are among the most frequent findings. When a worker's classification on the certified payroll does not match the work actually performed, it creates a wage determination mismatch that constitutes a prevailing wage violation.