What Is Certified Payroll? A Construction Guide for Contractors and Subcontractors
June 25, 2025
Certified payroll reporting is complex, but it doesn’t have to be. Here’s what construction businesses need to know — and why working with the right accounting partner matters.
What Is Certified Payroll?
Certified payroll is a specialized type of payroll reporting required on most government-funded construction projects. It ensures that workers are being paid fairly and in accordance with federal Davis-Bacon Act standards — including proper wages, fringe benefits, and classifications.
If your company works on public works contracts (federal, state, or municipal), you’re likely required to submit weekly certified payroll reports (typically Form WH-347).
🧾 What Information Must Be Included?
Certified payroll reports must detail:
- Employee name and identifying info
- Work classification (e.g., electrician, laborer)
- Hours worked (daily and weekly)
- Rate of pay (base + fringe benefits)
- Gross wages
- Deductions and net pay
- Project name, location, and contract number
And most importantly: A signed statement of compliance verifying that workers were paid correctly.
❗ Why Certified Payroll Is Challenging
Certified payroll is not standard payroll. Construction businesses face several extra layers of complexity:
- Multiple pay rates per employee (depending on job classification and worksite)
- Prevailing wage compliance across federal, state, and sometimes local levels
- Manual reporting errors and strict audit requirements
- Tracking fringe benefits like health insurance, pension, or training contributions
Missing a detail — or misclassifying a worker — can lead to hefty penalties, contract issues, or even disqualification from future bids.
🧠 Why Most Accounting Firms Don’t Offer This
Certified payroll requires niche knowledge of:
- Construction labor laws
- Government contract compliance
- Weekly reporting cycles
- Davis-Bacon and state-specific prevailing wage laws
It’s labor-intensive, rules-heavy, and constantly changing — which is why many generalist bookkeeping firms avoid it altogether.
💼 How Our Certified Payroll Service Helps
We specialize in helping construction firms stay compliant, efficient, and audit-ready. Our certified payroll service includes:
- Full weekly reporting (WH-347 or state equivalent)
- Prevailing wage classification and rate validation
- Tracking fringe benefits and deductions
- Digital time tracking integration (if needed)
- Automatic generation of certified statements
- Record retention and audit preparation
We serve general contractors, subcontractors, and specialty trades on projects of all sizes — from federal contracts to local public works jobs.
Certified payroll is a non-negotiable requirement for public construction work — but it doesn’t have to be a weekly headache. By partnering with a bookkeeping firm that understands the construction industry and prevailing wage laws, you can stay focused on the job site while we handle the paperwork. If you’re bidding on government contracts or already managing public projects, our certified payroll service will help you stay compliant, confident, and contract-ready.
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