Federal construction contracts over $2,000 come with a weekly certified payroll requirement under the Davis-Bacon Act. These reports must be submitted every week, without exception, and they play a direct role in keeping your project funded and moving forward. For contractors new to government work, the rules can feel unclear, and even small mistakes can quickly turn into costly setbacks.
The Department of Labor requires the use of Form WH-347 for federal and federally funded construction projects. Each weekly submission must include a signed Statement of Compliance from you, your subcontractors, or the person responsible for paying workers. These reports serve as official proof that employees are properly classified and paid the prevailing wages required by law.
The risks of non-compliance are severe:
- Contract termination and withheld government funding
- Payment of back wages for underpaid workers
- Debarment from future contracts for up to three years
- Ineligibility for federally funded projects
We’ll show you exactly how certified payroll works, what Form WH-347 requires, and how to stay compliant without the headaches.
What You Need to Know About Form WH-347
Certified payroll reports prove your workers receive fair wages on government projects. Most contractors use Form WH-347, but many don’t realize that the actual form is technically optional. What’s mandatory is submitting weekly payroll information on federally funded construction projects.
The Copeland Act (40 U.S.C. § 3145) requires weekly statements detailing wages paid to each employee during the previous week. The Department of Labor uses these reports to verify that workers receive the legally required prevailing wage rates for their job classifications.
Three Required Elements for Every Submission:
1. Complete payroll information for all workers on the project
2. Signed Statement of Compliance (typically page 2 of WH-347)
3. Certification that each worker received proper Davis-Bacon prevailing wages and fringe benefits
The Department of Labor and contracting agencies review every submission. The USDOL released a revised WH-347 version in January 2025 to simplify the process while maintaining all reporting requirements.
Violations result in significant penalties, contract termination, and potential debarment.
What Goes Into Form WH-347
Form WH-347 has two parts: the payroll report and the statement of compliance. The payroll section shows worker classifications and hours. The compliance statement verifies fringe benefits and confirms accuracy.
Required Information for Each Report
Your certified payroll must include specific contractor and worker details. Basic business information covers your company name, address, payroll number, and project information.
For every worker, document:
- Worker identification – name and identifying number (usually last four SSN digits)
- Work classification – the specific job category they performed
- Daily hours – straight time and overtime separated by day
- Pay rates – hourly wages for their classification
- Fringe benefits – cash payments or approved benefit plans
- Earnings breakdown – gross pay, deductions, and net wages paid
Statement of Compliance Requirements
When you sign the compliance statement, you’re certifying under penalty of perjury that:
- Payroll information is accurate and complete
- Workers received proper prevailing wages
- Classifications match actual work performed
- Fringe benefits were paid through approved plans or cash
These are legal documents. Willful falsification can result in civil action or criminal prosecution. Prime contractors must collect and review certified payroll reports from all first and second-tier subcontractors, checking them carefully for compliance.
Compliance Made Simple: 5 Steps to Avoid Costly Mistakes
Certified payroll compliance comes down to consistent attention to detail. Each Statement of Compliance must match page 2 of WH-347 exactly, and boxes 1, 2, 3, and 6 must always be checked.
The biggest compliance mistakes we see:
- Using outdated wage determinations
- Missing weekly submission deadlines
- Misclassifying workers
Miss a deadline, and your contract funds get withheld. Worse, you become ineligible for future federally funded projects.
Here’s how to stay compliant:
- Verify fringe benefits are calculated correctly and documented properly
- Keep detailed records for each project plus three years after completion
- Use the DOL’s web-based WH-347 generator for instant calculations
- Create state-specific checklists with forms, deadlines, and submission methods
- Monitor your subcontractors – you’re responsible for their compliance too
Remember: requirements vary significantly between states. What works in California won’t necessarily work in Texas.
Need help? We assess your situation, create a compliance plan, and then implement processes to ensure your projects stay on track. Learn what we can do for you.
Protect Your Business with Proper Certified Payroll Compliance
Certified payroll requirements protect your company’s ability to compete for profitable government contracts. Form WH-347 might look complicated at first, but the weekly reporting process becomes routine once you understand the requirements.
Your obligation goes beyond just your direct employees; you’re responsible for ensuring all subcontractors maintain proper reporting, too. This creates additional oversight responsibilities that many contractors underestimate.
The key is treating certified payroll as a business protection system rather than paperwork. Accurate weekly submissions keep your projects moving forward and your company eligible for future contracts. Poor record-keeping or missed deadlines can shut you out of government work for years.
Smart contractors invest in systems that make compliance automatic. Whether you use digital tools or manual processes, maintaining detailed records for three years after project completion gives you protection during audits.
Most importantly, certified payroll compliance levels the playing field. Companies that follow the rules compete fairly against each other, while those who cut corners face serious consequences.
Get help ensuring your certified payroll processes protect your business – Book a free discovery session. Professional guidance can prevent costly mistakes and keep your company competitive for government contracts.
