| Worker | Classification | M | T | W | T | F | Hours | Rate | Fringe | Gross |
|---|---|---|---|---|---|---|---|---|---|---|
| A. Morales | Carpenter | 8 | 8 | 8 | 8 | 8 | 40 | $52.40 | $14.80 | $2,096.00 |
| J. Whitfield | Carpenter | 8 | 8 | 8 | 8 | 0 | 32 | $52.40 | $14.80 | $1,676.80 |
| D. Okafor | Laborer | 8 | 8 | 8 | 8 | 8 | 40 | $38.10 | $11.25 | $1,524.00 |
| Totals | 112 | $5,296.80 | ||||||||
What certified payroll requires
Federally funded and federally assisted construction contracts covered by the Davis-Bacon and Related Acts require contractors and subcontractors to pay laborers and mechanics at least the prevailing wage for their classification, and to submit a certified payroll report every week. Many states have their own prevailing wage laws with similar reporting.
The federal report is form WH-347. For each worker it lists the work classification, hours worked each day, rate of pay, gross amount earned, deductions and net wages, followed by a signed statement of compliance.
How EZBilling produces the WH-347
EZBilling is not a payroll processor. You keep running payroll where you run it today. EZBilling takes the payroll data for the period and turns it into the weekly certified report.
- Employees are set up with their work classifications.
- Prevailing wage rates are recorded for the project by classification.
- Fringe benefits are tracked, since fringes paid to a plan or in cash count toward the prevailing rate.
- Payroll data is imported for each payroll period.
- The WH-347 report is generated for the period as a PDF, ready to sign and submit.
Where certified payroll usually goes wrong
Most rejected reports fail on the same few points, and all of them are easier to catch when the rates and classifications are set up once per project.
- A worker is reported under a classification that does not match the work performed, or under one that is not on the wage determination for the project.
- The wage determination in use is not the one incorporated in the contract.
- Fringe benefits are left off, or cash paid in place of fringes is not shown.
- Hours on the report do not agree with the daily logs or with the payroll register.
- The statement of compliance is unsigned, or signed by someone without authority to sign it.
- A week with no work on the project is skipped where the agency expects a no-work report.
A general contractor answers for its subcontractors
On a covered project the prime contractor is responsible for the compliance of every subcontractor and lower-tier subcontractor. Their certified payrolls are part of your submission, and their underpayments can be withheld from your contract payments. Collecting sub payrolls every week, alongside their lien waivers and insurance certificates, is part of running the job.
Why it belongs with billing and job cost
Certified payroll is usually a condition of payment on public work. An agency or owner can hold a pay application until the payroll reports for the period are in. Keeping the reports in the same system as the project and its billing means the person assembling the monthly package is not waiting on a separate tool.
Frequently asked questions
What is a WH-347?
WH-347 is the U.S. Department of Labor payroll form contractors and subcontractors use to submit weekly certified payroll on projects covered by the Davis-Bacon and Related Acts. It reports each worker's classification, hours, pay rate, gross wages, deductions and net pay, with a signed statement of compliance.
How often is certified payroll submitted?
Weekly. A certified payroll report is due for every week in which covered work is performed on the project.
Does EZBilling run payroll?
No. EZBilling does not process payroll or file payroll taxes. It imports payroll data and generates the WH-347 certified payroll report from it.
Do fringe benefits count toward the prevailing wage?
Yes. The prevailing wage is made up of a basic hourly rate and a fringe benefit rate. Fringes can be paid into a bona fide benefit plan, paid in cash, or a combination of the two.
See it on your own jobs
We will walk through a pay application on a job like yours, from schedule of values to payment.
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