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Definition of Certified Payroll

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Laborers who work on public buildings are guaranteed prevailing wages and benefits.

The Davis-Bacon and Related Acts require contractors that work on public buildings or public works--under federal contracts in excess of $2,000--to pay their employees "prevailing wage rates and fringe benefits" as defined by the U.S. Department of Labor's Wage and Hour Division. To prove they are doing so, contractors must submit weekly certified payroll reports along with signed statements of compliance.

  1. Certified Payroll Report

    • The weekly certified payroll report must be submitted on Form WH-347, "Payroll (For Contractors Optional Use)," or on another form with identical wording, according to the U.S. Department of Labor Employment Law Guide. It must be filed within seven days after the pay date. The form and instructions for completing it are available online.

    Information

    • Information on the certified payroll report form includes the name, address and Social Security number of each employee, as well as their work classifications, hourly pay rates, hours worked, deductions and wages paid. It may also include information about fringe benefits and apprenticeship or trainee programs, if applicable.

    Statement of Compliance

    • The second page of Form WH-347 includes a statement of compliance that must be completed, signed and submitted along with the payroll report. It certifies that the information on the payroll report is correct and complete and that each employee has been paid no less than the prevailing wage rate for the work performed, as determined by the Department of Labor.

    Prevailing Wages

    • One of the ways the government determines "prevailing wages" is by surveying contractors, which are sometimes asked to submit Form WD-10, "Report of Construction Contractor's Wage Rates," along with their certified payroll reports. The going rate for all general and specialty classifications of construction work in each local area is posted at the Wage Determinations Online site.

    Penalties

    • Contractors that fail to submit weekly certified payroll reports may lose their contracts and can be barred from getting future government contracts for up to three years. Contractors that falsify information on the forms may be prosecuted and fined or sentenced to jail.

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