Certified payroll is a weekly payroll report that must be submitted by employers who work on projects fully or partially funded with federal money that have a contract value over $2,000. This applies most often to companies in the construction industry.

• The report is submitted via Form WH-347 and should be provided to the agency overseeing your contract to prevent losing funds.
• It lists details about every worker—including wages, benefits, and hours worked—and includes a compliance statement.
• Some of the best payroll software providers have certified payroll features that will automate this for you.

ADP RUN’s Point North Certified Payroll Reporting is flexible enough to handle union and nonunion contractors and will meet your state-specific reporting requirements. Get a free quote today. Visit ADP RUN
What is certified payroll? –

Certified payroll is a special weekly payroll report using that contractors who are working on federally-funded projects need to complete and submit to prove they are paying workers the prevailing wage.The requirement comes from the, which passed in 1931 and requires that each contract over $2,000 to which the US or the District of Columbia is a party for the construction, alteration, or repair of public buildings or public works shall contain a clause setting forth the minimum wages to be paid to laborers and mechanics employed under the contract.Since its enactment, other related “Acts” have been passed that require payment of prevailing wages in accordance with the Davis-Bacon Act for federally assisted construction undertaken pursuant to the relevant law such as the Federal-Aid Highway Acts, Housing and Community Development Act of 1974, and Federal Water Pollution Control Act.

What is Certified Payroll?

What Is Certified Payroll? – When contractors or subcontractors are working on federally funded construction projects, they are required to submit a special weekly payroll report called Certified Payroll. This special report is submitted using Form WH-347 and helps ensure that all workers are paid proper wages.

What are the requirements of Certified Payroll for contractors?

Requirements – Requirements of certified payroll include:

• Contractors must pay workers in government contracts local prevailing wage and fringe benefits.
• Contractors need to sign and submit a weekly certified payroll report called Form WH-347 to the U.S. Department of Labor (DOL).
• Contractors must pay employees weekly.

Be aware that prevailing wages vary by region and by job. If you do contract work in multiple states or even regions, the prevailing wage will likely be different.

How long does a Certified Payroll report take?

Doing Certified Payroll – The certified payroll report is two pages long. You’ll start by entering specific information about your employees, business, federal project, contractor, and payroll. Filling in the basic payroll information should be simple if you keep good payroll records.

• You determine the employee’s rate of pay before they begin working, but their hours worked, deductions and amounts, and fringe benefits paid need to be tracked closely to ensure accuracy.
• One of the most challenging parts is reporting fringe benefits.
• If you pay the minimum required fringes, per the DOL, in cash instead of through a provider, you must add this to your employee’s hourly pay rate.

Work classifications—descriptions of the type of labor performed by each worker—can also be tricky if one or more of your workers perform multiple types of work. For example, Worker A might work on three jobs in one week (e.g., carpenter, foreman, and equipment operator). Enter the following information about your federal project at the top of the report before moving on to employee data:

Contractor or Subcontractor: Enter your company’s name and check the appropriate box. Address: Enter your company’s address. Payroll No.: List the payroll number; if it’s your first time submitting, start with 1. For Week Ending: List the end date for the workweek. Project and Location: Identify the project and location (city and state). Project or Contract No.: Enter the contract number for the project.

Enter the following information about your employees and their work details: Column 1: Name and Identifying Number: You must enter the employee’s full name, and you can use the last four digits of the worker’s Social Security number as an identifying number.

Column 2: Withholding Exemptions: This column is optional. If you want to complete it for convenience, you can. It should reflect on their W-4 form. If not, disregard. Column 3: Work Classifications: List the classification of work actually performed by each laborer or mechanic. Check the classification and minimum wage schedule in the contract for more information.

If your employee worked in more than one classification, you can show this with an accurate breakdown of hours worked in each classification. They must be shown on separate entries. Column 4: Hours Worked: Enter the day and date for all time worked, with straight time and overtime hours worked in the applicable boxes.

• On all contracts subject to the Contract Work Hours Standard Act, enter hours worked over 40 in a week as “overtime.” The row with “O” under the “OT OR ST” column is for overtime hours, and the row with “S” is for straight time hours.
• Column 5: Total: Add all hours, straight and overtime, and enter the total.

Column 6: Rate of Pay (including fringe benefits): In the straight time box for each worker, labeled as “S” in the “OT OR ST” column, enter the hourly rate you paid for straight time worked plus cash paid in lieu of fringe benefits paid. To prevent confusion, separate the straight time hourly rate and cash paid in lieu of fringe benefits like this: “$10.15/.60.” $10.15/.60 would reflect a $10.15 base hourly rate plus 60 cents for fringe benefits.

• This comes in handy when computing overtime.
• When an employee works overtime, show the overtime hourly rate paid plus any cash in lieu of fringe benefits paid in the overtime box; if there was no overtime, you may skip this box.
• If the work falls under the Contract Work Hours Standard Act, you must pay the employee overtime at a rate of 1.5 times the regular rate if the prime contract exceeds $100,000.

Column 7: Gross Amount Earned: Enter gross earnings on this project. If the worker earned part of their money from projects other than the project you’re reporting on this payroll form, enter the following in column 7:

Amount earned on the federal or federally assisted project Gross earnings during the week on all projects

Enter $200.00/$420.00; this would reflect that a worker earned $200.00 on a federally funded construction project during a week that they earned a total of $420.00 on all work. Column 8: Deductions: The form gives you five columns to show deductions taken.

1. If you need more, use the first four columns and show the balance of the remaining deductions under the “Other” column.
2. Show the grand total (first four deductions plus total other) under “Total Deductions” column.
3. In the payroll’s attachment, describe the deduction(s) contained in the “Other” column.

If one of your workers works on other jobs in addition to this project, show actual deductions from their weekly gross wages and indicate that deductions are based on gross wages. Column 9: Net Wages Paid for Week: Subtract total deductions from gross amount earned and enter here. Statement Required by Regulations: This is the statement of compliance that accompanies the payroll report. Once it’s signed, the report is certified. You don’t need to have it notarized, but you do need to be sure the information presented is correct.

• By signing, you certify that the information included is accurate; you are subject to a fine, possible imprisonment up to five years, or both if you’re wrong.
• Items 1 and 2: Enter the date and your name and title above Item 1.
• Then, enter your business name and project (building or work).
• And lastly, enter the starting and ending dates of the pay period before re-entering your business name.

Use the space above Item 2 of the statement to describe any deductions made. If all deductions made are adequately reflected in the Deductions column on Page 1, Column 8, state “See Deductions column in this payroll.” Item 4: Fringe Benefits: If you pay all required fringe benefits to approved plans, funds, or programs (instead of cash) per the amount in the prevailing wage determination, only show the straight time hourly rate and overtime rate paid to each worker on the face of the payroll, i.e., don’t add it to Column C on Page 1, and check paragraph 4(a) of the statement to indicate the payment.

What forms do contractors need to file for payroll?

Requirements – Requirements of certified payroll include:

• Contractors must pay workers in government contracts local prevailing wage and fringe benefits.
• Contractors need to sign and submit a weekly certified payroll report called Form WH-347 to the U.S. Department of Labor (DOL).
• Contractors must pay employees weekly.

Be aware that prevailing wages vary by region and by job. If you do contract work in multiple states or even regions, the prevailing wage will likely be different.