Certified Payroll Reporting: What is it?

If you are a contractor or subcontractor working on federally funded construction projects, you already know that there is no shortage of rules and regulations to keep up with. Worrying about payroll reporting on top of managing your crew, staying on schedule, and keeping costs in check can cause a headache.

That is why in this article, we are going to break down exactly what certified payroll reporting is, why it matters, and what you need to know to stay compliant. Whether you are brand new to government contracts or you just want to make sure you are doing things right, you are in the right place. And if you are looking for a broader overview of certified payroll in general, we have a full resource on that here: What is Certified Payroll?

Let's dive in.

Key Takeaways from this Article

• Certified payroll reporting is a weekly requirement for contractors and subcontractors working on federally funded construction projects valued at $2,000 or more.
• Reports must verify that workers are being paid the prevailing wage for their job classification and geographic area.
• The standard form used for federal certified payroll reporting is Form WH-347, issued by the U.S. Department of Labor.
• Errors, late submissions, or missing reports can result in serious penalties, including contract termination and being barred from future federal projects.
• Many states have their own certified payroll reporting requirements in addition to federal ones, so it is important to know the rules in your specific state.

What is Certified Payroll Reporting?

Certified payroll reporting is the process of submitting detailed payroll records to a government agency to prove that workers on publicly funded projects are being paid correctly. More specifically, certified payroll reports are used to demonstrate compliance with the Davis-Bacon and Related Acts, a set of federal laws that require contractors and subcontractors to pay their workers the prevailing wage for the area where the work is being performed.

So what does "prevailing wage" mean? Simply put, it is the average wage paid to workers in a specific trade or occupation within a particular geographic region. The U.S. Department of Labor determines these rates, and they can vary significantly depending on where your project is located and what type of work is being done.

The reporting itself is not a one-time task. Contractors must submit certified payroll reports on a weekly basis, even during weeks when work is temporarily paused. That consistency is a key part of what makes this process so important and so easy to fall behind on if you are not organized.

It is also important to know that many states have their own prevailing wage laws, sometimes called Little Davis-Bacon Acts. If you are working on a state-funded project rather than a federally funded one, you may still be required to submit certified payroll reports, just to a different agency. When in doubt, contact the relevant state department of labor to confirm your specific reporting responsibilities.

Who Must Follow Certified Payroll Reporting Requirements?

Certified payroll reporting applies to contractors and subcontractors working on federal construction projects valued at $2,000 or more. This includes a wide range of trades and roles such as electricians, carpenters, plumbers, welders, and equipment operators. It is worth noting that executive, administrative, and salaried professional staff are generally exempt from these requirements.

It is also important to understand that the responsibility does not fall on the prime contractor alone. Subcontractors on federally funded projects are subject to the same reporting requirements. The prime contractor is ultimately accountable for making sure all subcontractor payrolls are submitted correctly and on time, but everyone working on a covered project has a role to play in keeping things compliant.

How to Fill Out Form WH-347

The standard form used for federal certified payroll reporting is Form WH-347, issued by the U.S. Department of Labor's Wage and Hour Division. It needs to be completed and submitted every single week, regardless of whether work was performed or not.

The form has two pages. The first page is where all of your payroll data lives. The second page is where you sign the Statement of Compliance, which is what officially "certifies" the report. That signature is a legal attestation that everything inside the form is accurate and complete.

Here is a breakdown of what goes into each section of the form:

Remember, the reporting itself is not a one-time task. Contractors must submit certified payroll reports on a weekly basis, even during weeks when work is temporarily paused. 

Why Certified Payroll Reporting Compliance Matters?

Certified payroll reporting is a legal certification to the federal government that your workers were paid correctly. When you sign off on a certified payroll report, you are personally attesting to the accuracy of the information inside it.

Non-compliance can lead to some serious consequences, including withholding contract payments, termination of your federal contract, being barred from future government projects for up to three years, and in the most severe cases, civil or criminal prosecution for falsifying records. Even unintentional errors can trigger audits or investigations, which take time and resources to resolve.

Beyond the legal risk, staying compliant with certified payroll reporting protects your reputation. In the construction industry, your track record matters. Contractors who consistently meet their reporting requirements are seen as reliable partners. Those who do not can find it very difficult to win future bids.

FAQS: Certified Payroll Reporting

What is a Contractor Foreman certified payroll feature?

Contractor Foreman is a construction management software that includes a built-in certified payroll feature. This tool allows contractors to track hours, wages, and job classifications and then generate certified payroll reports automatically. It is designed to simplify the reporting process for construction businesses that manage multiple projects and employees at once. This software is not a payroll processing software but can help with the reporting aspect.

What is a certified payroll professional?

A certified payroll professional, often referred to as a CPP, is someone who has passed the certified payroll professional exam administered by PayrollOrg (formerly the American Payroll Association). Earning this designation demonstrates a high level of knowledge in payroll processing, tax regulations, and compliance. It is worth noting that you do not need to be a CPP to complete and submit a certified payroll report. Any contractor or payroll provider can do so, though working with someone who has this level of expertise certainly does not hurt. 

Why are certified payroll reports required?

Certified payroll reports are required to protect workers on publicly funded construction projects. Without them, there would be no reliable way for government agencies to verify that contractors are actually paying the prevailing wage. They also help ensure fair competition among contractors, since everyone is held to the same wage standards rather than being able to underbid by cutting worker pay.

How do you fill out a certified payroll report?

The standard form for federal certified payroll reporting is Form WH-347. To complete it, you will need to enter your company information, project details, and payroll number for the week. From there, you list each employee, their job classification, the hours they worked each day, their rate of pay including fringe benefits, their gross earnings, all deductions, and their net wages for the week. The second page of the form includes a Statement of Compliance, which must be signed by the contractor, subcontractor, or an authorized agent. That signature is what makes the report "certified."

What is Wage Hour Form 347 (WH-347)?

Form WH-347 is the official certified payroll report form issued by the U.S. Department of Labor's Wage and Hour Division. It is the standard document used by contractors and subcontractors to report payroll data on federally funded construction projects. While using this specific form is technically optional, submitting weekly payroll records and a signed Statement of Compliance is not. Most contractors use WH-347 because it is designed specifically to meet all of the federal reporting requirements in one place.

Who should submit a certified payroll report?

Both contractors and subcontractors working on covered federal projects are responsible for submitting certified payroll reports. The prime contractor is ultimately responsible for ensuring that all subcontractor payrolls are submitted as well. So even if you are a subcontractor, your payroll data needs to be reported, whether you submit it yourself or your prime contractor handles the submission on your behalf.

What are common errors with certified payroll reporting?

Some of the most common mistakes include reporting incorrect job classifications, failing to split hours when an employee performs more than one type of work, misreporting fringe benefits as cash wages, submitting reports with missing signatures, and missing the weekly submission deadline. Any one of these errors can result in a rejected report or trigger a compliance inquiry. 

Does certified payroll reporting require training?

Not officially, but it certainly helps. The rules surrounding prevailing wages, job classifications, and fringe benefits can get complicated quickly. Many businesses invest in training for the employees responsible for payroll reporting, and some choose to work with outside partners who specialize in this area. Having a documented process and the right tools in place goes a long way toward avoiding costly errors.

What happens if a certified payroll report is not submitted?

The consequences can be significant. Failing to submit reports on time, or submitting reports with errors, can result in contract payments being withheld, termination of your federal contract, and disqualification from bidding on future government projects for up to three years. In cases where falsification is involved, contractors can face civil or criminal penalties.

Conclusion

Certified payroll reporting is one of those things that can feel overwhelming at first, but once you understand what is required and why, it becomes a manageable part of doing business on government projects. The key is staying organized, submitting on time, and making sure every report is accurate before you sign off on it. If you have questions about certified payroll reporting or need help getting your process in order, we are here to help.

Written: March 2026

Written by: Chris Cluff