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The Certified Payroll form, specifically Form WH-347, plays a crucial role in ensuring compliance with federal labor laws, particularly for contractors and subcontractors involved in federally funded construction projects. While its completion is optional for some, it becomes mandatory for those working on projects that fall under the jurisdiction of the Davis-Bacon Act. This form requires detailed information about each worker, including their name, job classification, hours worked, and wages paid. Additionally, contractors must provide a signed "Statement of Compliance," affirming that all employees have received at least the prevailing wage rates as mandated by law. The U.S. Department of Labor utilizes the information gathered from this form to verify that workers are compensated fairly and in accordance with federal regulations. Moreover, the form serves as a safeguard against potential wage theft, ensuring that employees are not only paid correctly but also receive any required fringe benefits. Understanding the nuances of the Certified Payroll form is essential for contractors, as failing to comply can lead to serious legal repercussions.
Certified Payroll Example
U.S. Department of Labor |
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PAYROLL |
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Wage and Hour Division |
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(For Contractor's Optional Use; See Instructions at www.dol.gov/whd/forms/wh347instr.htm) |
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Persons are not required to respond to the collection of information unless it displays a currently valid OMB control number. |
Rev. Dec. 2008 |
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NAME OF CONTRACTOR |
OR SUBCONTRACTOR |
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ADDRESS |
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Expires: 07/31/2024 |
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PAYROLL NO. |
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FOR WEEK ENDING |
PROJECT AND LOCATION |
PROJECT OR CONTRACT NO. |
(1)
NAME AND INDIVIDUAL IDENTIFYING NUMBER (e.g., LAST FOUR DIGITS OF SOCIAL SECURITY NUMBER) OF WORKER
(2)
NO. OF WITHHOLDi NG TXE EMP IONS
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WORK
CLASSIFICATION
(4) DAY AND DATE |
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DEDUCTIONS |
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NET |
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GROSS |
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WITH- |
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WAGES |
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OT. |
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TOTAL |
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AMOUNT |
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HOLDING |
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PAID |
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HOURS WORKED EACH DAY |
HOURS |
OF PAY |
EARNED |
FICA |
TAX |
OTHER |
DEDUCTIONS |
FOR WEEK |
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While completion of Form
(40 U.S.C. § 3145) contractors and subcontractors performing work on Federally financed or assisted construction contracts to "furnish weekly a statement with respect to the wages paid each employee during the preceding week." U.S. Department of Labor (DOL) regulations at
29 C.F.R. § 5.5(a)(3)(ii) require contractors to submit weekly a copy of all payrolls to the Federal agency contracting for or financing the construction project, accompanied by a signed "Statement of Compliance" indicating that the payrolls are correct and complete and that each laborer or mechanic has been paid not less than the proper
Public Burden Statement
We estimate that is will take an average of 55 minutes to complete this collection, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. If you have any comments regarding these estimates or any other aspect of this collection, including suggestions for reducing this burden, send them to the Administrator, Wage and Hour Division, U.S. Department of Labor, Room S3502, 200 Constitution Avenue, N.W. Washington, D.C. 20210
(over)
Date
I,
(Name of Signatory Party) |
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(Title) |
do hereby state:
(1) That I pay or supervise the payment of the persons employed by
(b)WHERE FRINGE BENEFITS ARE PAID IN CASH
−Each laborer or mechanic listed in the above referenced payroll has been paid, as indicated on the payroll, an amount not less than the sum of the applicable basic hourly wage rate plus the amount of the required fringe benefits as listed in the contract, except as noted in section 4(c) below.
(c)EXCEPTIONS
(Contractor or Subcontractor)
on the
EXCEPTION (CRAFT) |
EXPLANATION |
; that during the payroll period commencing on the
(Building or Work)
day of |
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, and ending the |
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day of |
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all persons employed on said project have been paid the full weekly wages earned, that no rebates have been or will be made either directly or indirectly to or on behalf of said
from the full
(Contractor or Subcontractor)
weekly wages earned by any person and that no deductions have been made either directly or indirectly from the full wages earned by any person, other than permissible deductions as defined in Regulations, Part
3 (29 C.F.R. Subtitle A), issued by the Secretary of Labor under the Copeland Act, as amended (48 Stat. 948,
63 Stat. 108, 72 Stat. 967; 76 Stat. 357; 40 U.S.C. § 3145), and described below:
(2)That any payrolls otherwise under this contract required to be submitted for the above period are correct and complete; that the wage rates for laborers or mechanics contained therein are not less than the applicable wage rates contained in any wage determination incorporated into the contract; that the classifications set forth therein for each laborer or mechanic conform with the work he performed.
(3)That any apprentices employed in the above period are duly registered in a bona fide apprenticeship program registered with a State apprenticeship agency recognized by the Bureau of Apprenticeship and Training, United States Department of Labor, or if no such recognized agency exists in a State, are registered with the Bureau of Apprenticeship and Training, United States Department of Labor.
(4)That:
(a)WHERE FRINGE BENEFITS ARE PAID TO APPROVED PLANS, FUNDS, OR PROGRAMS
−in addition to the basic hourly wage rates paid to each laborer or mechanic listed in the above referenced payroll, payments of fringe benefits as listed in the contract have been or will be made to appropriate programs for the benefit of such employees, except as noted in section 4(c) below.
REMARKS:
NAME AND TITLE |
SIGNATURE |
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THE WILLFUL FALSIFICATION OF ANY OF THE ABOVE STATEMENTS MAY SUBJECT THE CONTRACTOR OR SUBCONTRACTOR TO CIVIL OR CRIMINAL PROSECUTION. SEE SECTION 1001 OF TITLE 18 AND SECTION 3729 OF TITLE 31 OF THE UNITED STATES CODE.
File Breakdown
| Fact Name | Details |
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| Mandatory Submission | Contractors and subcontractors on federally financed projects must submit Form WH-347 weekly, as required by the Copeland Act. |
| Compliance Verification | The U.S. Department of Labor reviews submitted payrolls to ensure compliance with wage laws and to verify that employees receive the correct wages and benefits. |
| Completion Time | It typically takes about 55 minutes to complete the form, including gathering necessary information and reviewing instructions. |
| State-Specific Regulations | In addition to federal requirements, states may have their own laws governing payroll submissions, such as the Davis-Bacon Act for prevailing wages. |
Guide to Using Certified Payroll
Filling out the Certified Payroll form is an essential step for contractors and subcontractors working on federally funded construction projects. This form ensures compliance with wage regulations and helps maintain transparency in wage payments. Follow these steps carefully to complete the form accurately.
- Begin by entering the name of the contractor or subcontractor at the top of the form.
- Fill in the address of the contractor or subcontractor.
- Provide the payroll number for the week ending and specify the project and location.
- Enter the project or contract number.
- For each worker, fill out the following details in the respective columns:
- Name and individual identifying number (e.g., last four digits of Social Security Number).
- Number of withholding tax exemptions.
- Work classification.
- Days and dates worked.
- Total hours worked each day.
- Gross wages earned.
- Withholding deductions.
- Other deductions.
- Net amount paid.
- After entering all worker information, review the statement of compliance section.
- Complete the signature block by entering the name and title of the signatory party.
- Sign and date the form.
Once the form is completed, ensure it is submitted to the appropriate federal agency along with any required documentation. This submission is crucial for maintaining compliance with federal wage laws.
Get Answers on Certified Payroll
What is the Certified Payroll form?
The Certified Payroll form, also known as Form WH-347, is a document that contractors and subcontractors use to report wages paid to employees on federally funded construction projects. This form ensures that workers receive the appropriate wages and benefits as required by law.
Who is required to use the Certified Payroll form?
Contractors and subcontractors working on federally financed or assisted construction contracts must use the Certified Payroll form. This requirement is part of the Copeland Act, which mandates that these employers provide weekly payroll information to ensure compliance with wage laws.
What information is included in the Certified Payroll form?
The form includes various details such as:
- Name and address of the contractor or subcontractor
- Payroll number and week ending date
- Project location and contract number
- Name and identifying number of each worker
- Work classification and hours worked
- Gross wages, deductions, and net pay
How often must the Certified Payroll form be submitted?
Contractors must submit the Certified Payroll form weekly. Each submission should cover the wages paid to employees during the previous week. This consistent reporting helps ensure compliance with federal wage laws.
What is the purpose of the "Statement of Compliance"?
The "Statement of Compliance" is a declaration that accompanies the Certified Payroll form. It confirms that the payroll information is accurate and that all employees have been paid at least the prevailing wage rates as required by law. This statement is essential for ensuring accountability.
What happens if a contractor fails to submit the Certified Payroll form?
If a contractor does not submit the Certified Payroll form, they may face penalties. These can include fines, disqualification from future contracts, or even legal action. Compliance is crucial for maintaining eligibility for federal projects.
Are there any exceptions to the wage requirements?
Yes, there are exceptions. If a contractor has specific reasons for not meeting wage requirements, they must document these exceptions clearly on the Certified Payroll form. However, any deductions must comply with federal regulations.
How long does it take to complete the Certified Payroll form?
On average, it takes about 55 minutes to complete the Certified Payroll form. This includes time spent reviewing instructions and gathering necessary data. Proper preparation can help streamline the process.
What are the consequences of falsifying information on the form?
Falsifying information on the Certified Payroll form can lead to serious consequences. Contractors may face civil or criminal prosecution, including fines or imprisonment. It's essential to provide accurate and truthful information.
Where can I find more information about the Certified Payroll form?
For more details, you can visit the U.S. Department of Labor's website. There, you will find instructions, resources, and guidance on how to properly complete the Certified Payroll form and comply with federal regulations.
Common mistakes
Filling out the Certified Payroll form can be straightforward, but many individuals make common mistakes that can lead to complications. One frequent error is not providing complete information about the contractor or subcontractor. It's essential to fill in the NAME and ADDRESS accurately. Missing or incorrect details can delay processing and raise questions about compliance.
Another mistake involves the identification of workers. Each worker's name must be accompanied by their INDIVIDUAL IDENTIFYING NUMBER, such as the last four digits of their Social Security number. Omitting this information can result in difficulties when verifying wages paid and compliance with labor laws.
People often overlook the section on WORK CLASSIFICATION. This classification must accurately reflect the work performed. Misclassifying a worker can lead to improper wage determinations and potential legal repercussions. Ensure that the classification matches the tasks the worker is engaged in.
Inaccuracies in reporting hours worked are also common. Each day’s hours must be carefully documented. Errors in the DAY AND DATE section can lead to discrepancies in wage calculations. It's vital to double-check these entries to avoid underpayment or overpayment issues.
Another significant error occurs when calculating DEDUCTIONS. All deductions must be listed accurately. This includes taxes and any other withholdings. Failure to report these correctly can lead to penalties and affect the workers’ benefits.
Submitting the form without a signed Statement of Compliance is a critical mistake. This statement certifies that the information provided is accurate and that all workers have been paid the appropriate wages. Without this signature, the form is incomplete and may not be accepted by the relevant authorities.
Lastly, some individuals neglect to keep copies of submitted payrolls. Retaining these records is essential for future reference and can protect against disputes or audits. Always ensure that copies are stored securely after submission to maintain compliance and transparency.
Documents used along the form
The Certified Payroll form is an essential document for contractors and subcontractors working on federally funded projects. However, it is not the only form that plays a crucial role in ensuring compliance with labor laws and regulations. Below is a list of other important forms and documents that often accompany the Certified Payroll form, each serving a unique purpose in the process of payroll reporting and compliance.
- Statement of Compliance: This document certifies that the payrolls submitted are accurate and that all workers have been paid at least the prevailing wage. It is signed by a representative of the contractor or subcontractor.
- Wage Determination: Issued by the Department of Labor, this document outlines the minimum wage rates and fringe benefits that must be paid to workers on a specific project, based on their classifications.
- Employee Timecards: These records detail the hours worked by each employee, providing evidence of time spent on the job. They help in verifying the accuracy of the payroll submitted.
- Fringe Benefit Statements: This document outlines the fringe benefits being provided to workers, such as health insurance or retirement contributions, ensuring compliance with contract requirements.
- Apprenticeship Documentation: For projects employing apprentices, this paperwork verifies that they are registered in a legitimate apprenticeship program, which is a requirement for compliance.
- Prevailing Wage Compliance Reports: These reports are used to document compliance with prevailing wage laws and can be requested by contracting agencies to ensure adherence to regulations.
- Subcontractor Payrolls: If subcontractors are involved, they must submit their own payrolls to ensure that all workers are being paid appropriately and in accordance with the prevailing wage laws.
- Work Classification Records: These documents provide details on how workers are classified according to their job roles, which is essential for determining the correct wage rates.
- Contractor's License and Bonding Information: This documentation confirms that the contractor is licensed and bonded, which is often a requirement for participating in federally funded projects.
- Safety Compliance Records: While not directly related to payroll, these documents ensure that safety regulations are being followed on the job site, which is crucial for overall compliance and worker protection.
Understanding these forms and their purposes is vital for maintaining compliance and ensuring that all workers are treated fairly and compensated appropriately. By keeping these documents organized and readily available, contractors can navigate the complexities of federal contracting with greater ease.
Similar forms
- W-2 Form: Similar to the Certified Payroll form, the W-2 form reports wages paid to employees and the taxes withheld. Both documents ensure transparency in wage reporting and compliance with federal tax regulations.
- 1099 Form: The 1099 form is used to report income received by independent contractors. Like the Certified Payroll form, it provides a record of payments made, but it focuses on non-employee compensation.
- Payroll Register: A payroll register summarizes the payroll data for each pay period, including gross wages and deductions. This document complements the Certified Payroll form by offering a detailed breakdown of employee earnings and withholdings.
- Time Sheets: Time sheets track the hours worked by employees. They serve as a basis for the information reported on the Certified Payroll form, ensuring that wages are accurately calculated based on hours worked.
- Statement of Compliance: This document accompanies the Certified Payroll form and confirms that the payrolls are accurate and that employees have been paid the required wages. It emphasizes compliance with labor laws and regulations.
Dos and Don'ts
When filling out the Certified Payroll form, attention to detail is crucial. The following list outlines important dos and don'ts to ensure compliance and accuracy.
- Do include the full name and address of the contractor or subcontractor.
- Do accurately report the payroll number for the week ending.
- Do ensure that each worker's name is accompanied by their individual identifying number, such as the last four digits of their Social Security number.
- Do provide the correct work classification for each worker.
- Do include the total hours worked each day for every employee.
- Don't omit any deductions or withholdings that apply to the wages paid.
- Don't forget to sign the "Statement of Compliance" to affirm the accuracy of the payroll information.
- Don't submit incomplete payrolls; ensure all required information is filled out.
- Don't falsify any information on the form, as this can lead to serious legal consequences.
By following these guidelines, contractors and subcontractors can help ensure compliance with federal regulations and facilitate the smooth processing of payroll submissions.
Misconceptions
Misconceptions about the Certified Payroll form can lead to confusion and potential compliance issues. Below are eight common misconceptions along with clarifications.
- Completion is Optional: While the form itself may be optional for some contractors, it is mandatory for those working on federally financed or assisted construction contracts. Compliance is crucial.
- Only Large Contractors Need to Use It: This form applies to all contractors and subcontractors, regardless of size, involved in covered projects. Small businesses are equally responsible for compliance.
- Submitting Payrolls is a One-Time Task: Contractors must submit payrolls weekly, not just once. This ongoing requirement ensures regular compliance with wage laws.
- Wages Can Be Paid in Any Form: Wages must be paid in accordance with the Davis-Bacon Act. This includes ensuring that all laborers receive at least the prevailing wage rate for their work.
- Fringe Benefits are Optional: Fringe benefits are not optional. Contractors must either pay them directly or contribute to approved plans, funds, or programs, as specified in the contract.
- Errors Can Be Ignored: Any inaccuracies in the payroll can lead to significant legal repercussions. Contractors must ensure that all information is correct and complete before submission.
- Compliance is Only Checked at the End of a Project: Compliance checks can occur at any time. Federal agencies may review payroll submissions to ensure ongoing adherence to wage and labor laws.
- Apprentices are Not Subject to Reporting: Apprentices must be reported just like any other employee. They must also be registered in a bona fide apprenticeship program recognized by the Department of Labor.
Understanding these misconceptions can help contractors navigate the requirements of the Certified Payroll form more effectively. Compliance is not just a legal obligation; it also reflects a commitment to fair labor practices.
Key takeaways
Filling out and utilizing the Certified Payroll form is an essential task for contractors and subcontractors involved in federally funded construction projects. Here are some key takeaways to consider:
- Mandatory Requirement: While the use of Form WH-347 is optional, it is mandatory for contractors working on federally financed projects to submit payroll information weekly.
- Accurate Reporting: Contractors must ensure that all payroll entries are accurate and reflect the wages paid to each worker. This includes the basic hourly wage and any fringe benefits.
- Weekly Submission: Payrolls must be submitted weekly to the federal agency overseeing the project, along with a signed "Statement of Compliance" confirming the correctness of the payroll.
- Compliance with Davis-Bacon Act: Contractors must pay laborers at least the prevailing wage rates as determined by the Davis-Bacon Act, ensuring fair compensation for work performed.
- Time Commitment: Completing the Certified Payroll form typically takes about 55 minutes, including time spent reviewing instructions and gathering necessary data.
- Exceptions and Deductions: Any exceptions to wage payments or permissible deductions must be clearly noted on the form to avoid potential legal issues.
- Apprentice Registration: If apprentices are employed, they must be registered in a bona fide apprenticeship program recognized by the U.S. Department of Labor.
- Legal Consequences: Falsifying information on the Certified Payroll form can lead to serious civil or criminal penalties, underscoring the importance of honesty and accuracy.
By understanding these key aspects, contractors can navigate the requirements of the Certified Payroll form more effectively, ensuring compliance and promoting fair labor practices in federally funded construction projects.