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Prevailing wage · Davis-Bacon

What is certified payroll?

Certified payroll is a weekly payroll report, signed under a Statement of Compliance, that contractors and subcontractors must submit for every week they perform work on a federally funded or assisted construction contract over $2,000 covered by the Davis-Bacon and Related Acts. It shows each worker’s classification, hours, and pay, and certifies that everyone was paid at least the prevailing wage. The Department of Labor’s Form WH-347 is the standard format, but its use is optional.

Last updated · Aequo AP editorial team

Certified payroll at a glance

Who: prime contractors and every subcontractor on covered contracts over $2,000.

When: weekly, for each week covered work is performed.

How: Form WH-347 (optional) or any format with the same information, plus a signed Statement of Compliance.

Keep: records for 3 years after all work on the prime contract is completed.

Who must file certified payroll

Every contractor and subcontractor performing work on a federally funded or assisted construction contract over $2,000 that is covered by the Davis-Bacon Act or a Related Act, for each week covered work is performed.

The prime contractor is responsible for the submission of all certified payrolls by all of its subcontractors. Many states have their own prevailing-wage laws with separate certified payroll rules for state and local public works — check the state agency if your project is not federally funded.

Form WH-347: the certified payroll form

WH-347 is the Department of Labor’s payroll form for contractors’ optional use; payrolls may be submitted on WH-347 or in any other format that contains the same information and the required certification.

WH-347 sectionWhat goes in it
HeaderPrime or subcontractor and final-payroll check boxes, project name, project or contract number, certified payroll number (starting at 1), business name, project location, and wage determination number(s)
Worker identificationAn identifier for each worker, such as the last four digits of the Social Security number (full numbers and home addresses are not included in weekly submissions)
Work classificationThe classification from the wage determination that matches the work performed
Hours workedStraight-time and overtime hours for each day and the total for the week
Rate of pay and fringe benefitsWages paid as cash, plus fringe benefits paid to bona fide plans or as cash in lieu
Gross pay, deductions, net payWages earned, deductions taken, and net wages paid for the week
Statement of ComplianceSigned certification on page 2 of the form (or a document with identical wording)

The current form and an online fillable version are on the DOL’s WH-347 page.

The Statement of Compliance

The Statement of Compliance is the signed certification that turns a payroll into a certified payroll: it certifies the payroll is complete and correct, workers were paid in full without improper deductions, and wages were at least those in the wage determination.

  • It must be signed by the contractor, subcontractor, or an authorized officer or employee who supervises payment of wages — a handwritten or legally valid electronic signature.
  • The Statement of Compliance on page 2 of WH-347, or another document with identical wording, satisfies the requirement.
  • Falsifying a certified payroll can bring civil or criminal prosecution under 18 U.S.C. § 1001 and 31 U.S.C. § 3729.

How to prepare and submit certified payroll

Classify workers against the wage determination, prepare the weekly payroll, sign the Statement of Compliance, submit it up the chain, and keep the records.

  1. 1
    Confirm the contract is covered (Davis-Bacon or a Related Act, over $2,000) and get the applicable wage determination from the contract.
  2. 2
    Classify each worker by the work actually performed and check their hourly rate plus fringe benefits against the wage determination.
  3. 3
    Each week work is performed, prepare the payroll: worker identifier, classification, hours each day, rates, gross pay, deductions, and net pay — on Form WH-347 or any equivalent format.
  4. 4
    Have an authorized officer sign the Statement of Compliance (handwritten or valid electronic signature).
  5. 5
    Submit the certified payroll to the contracting agency, or to the prime contractor if you are a subcontractor, who forwards all subcontractor payrolls.
  6. 6
    Keep full payroll records for at least three years after all work on the prime contract is completed.

Recordkeeping and the 2023 rule changes

Basic payroll records, certified payrolls, and the contracts themselves must be kept for at least three years after all work on the prime contract is completed. The DOL’s 2023 Davis-Bacon final rule, effective October 23, 2023, updated these requirements.

  • Records must include each worker’s last known telephone number and email address, in addition to name, address, and classification.
  • The three-year retention period runs from completion of all work on the prime contract.
  • Electronic signatures and electronic certified payroll submission are permitted.
  • On June 24, 2024, a federal court blocked three provisions of the 2023 rule nationwide; the rest remains in effect — check the DOL page for current status.

Why AP should care about subcontractors’ certified payroll

Because the prime contractor is responsible for submitting every subcontractor’s certified payrolls, many primes require them before paying a subcontractor’s pay application on a covered job.

Add “certified payroll received for every week worked” to your payment checklist on prevailing-wage jobs — it is on our printable subcontractor compliance checklist.

Aequo Build

Certified payroll and Aequo Build

Aequo Build does not prepare or submit certified payroll — that stays with your payroll provider or a certified payroll service. Aequo Build’s pre-payment checks cover insurance certificates, W-9s, and lien waivers; on prevailing-wage jobs, keep certified payroll receipt as a manual item on your payment checklist.

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Frequently asked questions

What is certified payroll in construction?

A weekly payroll report with a signed Statement of Compliance that contractors and subcontractors submit on Davis-Bacon covered federal construction contracts over $2,000, certifying workers were paid at least the prevailing wage.

Is Form WH-347 required?

No. The DOL describes WH-347 as optional; payrolls may be submitted on WH-347 or in any other format that includes the same information and the signed Statement of Compliance.

How often is certified payroll submitted?

Weekly, for each week in which any covered work is performed.

Who submits certified payroll — the prime or the subcontractor?

Each contractor and subcontractor prepares its own, and the prime contractor is responsible for submitting all subcontractors’ certified payrolls to the agency.

How long must certified payroll records be kept?

At least three years after all work on the prime contract is completed.

Does certified payroll apply to state projects?

Federal certified payroll applies to Davis-Bacon covered contracts. Many states have their own prevailing-wage laws with their own reporting rules for state and local public works.

Related guides and tools

Subcontractor compliance checklistPrintable: COI, W-9, waivers, certified payroll.Subcontractor COI trackingBlock payment when insurance expires.What is job costing in constructionConstruction AP knowledge centre

Sources

This guide summarizes federal rules for general information. It is not legal advice; prevailing-wage obligations depend on your contract and on federal and state law.

  1. U.S. Department of Labor — Form WH-347, Payroll (for contractors’ optional use)
  2. 29 CFR § 5.5 — Contract provisions and related matters (eCFR)
  3. U.S. Department of Labor — Davis-Bacon and Related Acts (construction)
  4. U.S. Department of Labor — Davis-Bacon final rule (2023) and FAQs
  5. U.S. Department of Labor — Davis-Bacon final rule FAQs

Part of the Construction AP Knowledge Centre.