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📋 Certified Payroll Guide

Complete guide to prevailing wage and certified payroll. Davis-Bacon, state requirements, and WH-347 forms.

What is Certified Payroll?​

Certified payroll is a weekly report submitted on public works projects showing:

  • Each worker's name and classification
  • Hours worked each day
  • Hourly rate paid
  • Fringe benefits
  • Gross wages
  • Deductions and net pay

When is it Required?​

Federal Projects (Davis-Bacon)​

  • Any federally funded construction over $2,000
  • Must pay federal prevailing wages
  • Weekly WH-347 forms required

State Projects (California)​

  • State-funded projects over $1,000
  • Must pay state prevailing wages
  • DIR registration required
  • eCPR electronic filing

Key Requirements​

Prevailing Wage Rates​

ComponentWhat It Includes
Basic hourly rateCash wages paid to worker
Fringe benefitsHealth, pension, vacation, training
Total hourly rateBasic + Fringe = Prevailing wage

Common Classifications​

  • Carpenter
  • Electrician
  • Laborer (various groups)
  • Operating Engineer
  • Plumber
  • Sheet Metal Worker
Misclassification Penalties

Classifying workers incorrectly to pay lower rates can result in back-pay penalties of 2-3x the underpayment, plus civil penalties up to $200 per day per worker.

The WH-347 Form​

Required Fields​

  1. Contractor name and address
  2. Project name and location
  3. Week ending date
  4. Worker information (name, address, last 4 SSN)
  5. Work classification
  6. Hours worked (daily breakdown)
  7. Rate of pay (basic + fringe)
  8. Gross wages
  9. Deductions
  10. Net wages

Statement of Compliance​

The certification statement must be signed by an authorized company representative stating:

  • Wages paid are accurate
  • Classifications are correct
  • No kickbacks occurred
  • Apprentices are registered (if applicable)

California DIR Requirements​

eCPR Filing​

California requires electronic certified payroll reporting:

  1. Register with DIR as a public works contractor
  2. Submit CPRs within 30 days of each pay period
  3. Upload to the DIR eCPR system

Apprenticeship Requirements​

  • Minimum ratio of apprentices required
  • Must use registered apprentices
  • Apprentices must be paid apprentice prevailing wage

Common Audit Findings​

  1. Wrong classification — Workers doing multiple tasks
  2. Missing fringe payments — Not making contributions
  3. Incomplete records — Missing daily time records
  4. Late filing — Not submitting within 30 days
  5. Split checks — Paying part cash to avoid taxes

Best Practices​

  1. Use software — Manual tracking is error-prone
  2. Daily time records — Don't recreate from memory
  3. Verify rates monthly — Prevailing wages change
  4. Train your foremen — They classify workers daily
  5. Audit yourself — Before the government does
  • BLDR Time — Prevailing wage time tracking software

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