--- title: "Certified Payroll Reporting: What It Is & Why It Matters | ADP" description: "Contractors working on federally funded projects must submit certified payroll reports. Learn more about how to comply with the requirements." --- Insight # Certified payroll reporting: what it is & why it matters Need help simplifying certified payroll reporting and staying compliant? Get Pricing[See Our Construction Solutions](/who-we-serve/by-industry/construction) 1. [Payroll](/what-we-offer/payroll) 2. Certified Payroll Reporting Contractors and subcontractors who are working federally-funded construction projects have an added requirement known as certified payroll reporting. Failure to submit reports on time can result in contract funds being withheld and ineligibility for future projects funded by the federal government. ![infographic showing the steps to complete certified payroll processing](/-/media/adp/resourcehub/images/articles-revamp/certified-payroll-reporting/certifiedpayrollprocessing_infographic_en.svg?rev=a414698518d64a028e77742152d60b73&hash=D601CD95B13A03F5DE0720F003CED63E) ## What is certified payroll reporting? Certified payroll reports confirm that contractors and subcontractors working on federally-funded projects are paying their employees prevailing wages in accordance with the Davis-Bacon and Related Acts. These records must be filed with the U. S. Department of Labor (DOL) on a weekly basis, even if work is temporarily halted. ## What is a certified payroll professional? A certified payroll professional (CPP) is a payroll expert who has passed the PayrollOrg (PAYO) certified payroll professional exam. Successful completion of the course demonstrates advanced knowledge in payroll processing, tax regulations and compliance. It is often a requirement for higher-level payroll management roles. ## What is the Davis-Bacon and Related Acts? [Davis Bacon and Related Acts](https://www.dol.gov/agencies/whd/government-contracts/construction) apply to contractors and subcontractors working on federal-funded and federally-assisted contracts in excess of $2,000 for [construction](/who-we-serve/by-industry/construction), alteration or repair, including painting and decorating. These employers must pay the workers employed under the contract no less than the local prevailing wages, including fringe benefits, for the type of work performed. The DOL, under the direction of the Davis-Bacon Act, determines the prevailing wage rates for each geographic region of the country. Overtime payment at one and one-half times the employee’s basic rate of pay for all hours worked over 40 in a workweek may be required for certain covered contracts. ## Finally, an HCM software built for construction [](https://www.youtube.com/watch?v=I9-knw9FwVA&embeds_referring_euri=https%3A%2F%2Fwww.adp.com%2F) ## What is included on certified payroll reports? Certified payroll reports require the following information for employees working on covered federal projects: - Full name and identifying number of the worker - [Work classification](/resources/articles-and-insights/articles/h/how-do-you-classify-workers) - Hours worked daily, including the day, date and straight time and overtime hours - Total hours - Rate of pay - Gross amount earned - All [payroll deductions](/resources/articles-and-insights/articles/p/payroll-deductions) and total of the deductions - Net wages paid for the week Each payroll report must also contain a statement of [compliance](/resources/articles-and-insights/articles/h/how-do-you-navigate-payroll-compliance-rules) signed by the contractor, subcontractor, or authorized agent who pays or supervises the payment of covered workers. The prime contractor is responsible for submission of payrolls by all subcontractors. ## Why are certified payroll reports required? By verifying that contractors are paying the required prevailing wages and fringe benefits, certified payroll reports help protect the livelihood of workers on certain federally funded contracts. Failure to meet this requirement or submitting certified payroll reports that are incorrect or late may put employers at risk for penalties. Get a solid foundation for your payroll Say goodbye to complex spreadsheets and systems with an all-in-one payroll solution designed for the construction industry. Get Pricing [See our construction solutions](/who-we-serve/by-industry/construction) ## How to fill out a certified payroll report - **Company information** Enter the construction company’s name and address and check the box for either “contractor” or “subcontractor.” - **Project information** The project name should match the one listed on the contract and must include the project number assigned by the government. - **Payroll number and date** List the first week of the contract as payroll number one. Each following week, increase the number, even when no work is performed, and note the date the workweek ends. - **Weekly calendar** In section four of the form, create a calendar for the week with days on the top row and dates on the bottom. - **Payroll information** Starting from the left side of the form, enter the required details for each employee – name, work classification, rate of pay, total hours worked, etc. - **Statement of compliance** After Form WH-347 is filled out for the week, complete the statement of compliance. It should include the date, employer’s name and title, the name of the project, explanations for deductions and exemptions, and the employer’s signature. ## What is wage hour form 347 (WH-347)? Form WH-347, issued by the Department of Labor, helps support compliance with the Davis-Bacon and Related Acts and prevailing wage rate requirements. Contractors and subcontractors engaged in federally funded or assisted construction projects use the form to document hours worked, wages paid and deductions. Although completing Form WH-347 is optional, employers must submit weekly payroll records and complete a statement of compliance verifying that they paid their workers the correct wages and fringe benefits. [See additional instructions for completing Form WH-347](https://www.dol.gov/agencies/whd/forms/wh347) Build better with ADP’s Construction Center of Excellence Simplify your payroll with tailored solutions for construction, including taxes, compliance, unions, and more. Get Pricing [See our construction solutions](/who-we-serve/by-industry/construction) ## State and local prevailing wage laws Contractors subject to the Davis-Bacon labor standards may also have to abide by state and local laws governing prevailing wages and overtime payments. For instance, they might be required to file state or local certified payroll reports in addition to Form WH-347 for the federal government. Employers on state-funded projects should contact the applicable state department of labor if their reporting responsibilities are not thoroughly explained when they receive their contract. ## How to do certified payroll for 1099 workers 1. **Include 1099 workers on certified payroll:** Independent contractors must be listed on the certified payroll form if they perform work subject to Davis-Bacon prevailing wage requirements. 2. **Report prevailing wages:** Employers are required to pay prevailing wages to 1099 workers according to their specific job classification. 3. **Note tax withholdings:** Independent contractors are responsible for their own taxes. As such, employers should indicate on the certified payroll report that they did not deduct payroll taxes on wages paid to 1099 workers. 4. **Clarify classification:** Misclassifying an employee as an independent contractor can result in compliance violations under the Fair Labor Standards Act (FLSA) and other labor laws. ## Working with a provider for certified payroll From certified payroll and HR management to labor tracking and compliance reporting, ADP offers comprehensive solutions to help you stay productive, minimize risk, and manage costs efficiently, no matter where you operate. With tools designed specifically for the construction industry, ADP simplifies complex tasks like managing union wages, meeting regulatory requirements, and tracking labor across multiple job sites. Plus, mobile access ensures your team can stay connected and keep operations running smoothly from the field. ADP’s tailored approach helps you control costs and stay compliant, wherever the job takes you. Ready to break ground? [Talk to sales today](#) ![Trusha Palkhiwala, Divisional Vice President, Global HR Shared Services, ADP](/-/media/adp/resourcehub/images/authors/author-trusha-palkhiwala-250w.jpg?h=250&iar=0&w=250&rev=ee85c7b79aaa4263a4d6688153e6090a&hash=16470AF63359B4CF654A52F3D4118996) [Trusha Palkhiwala](/resources/authors/t/trusha-palkhiwala)Divisional Vice President, Global HR Shared Services, ADPTrusha ensures Global HR Shared Services delivers service excellence through digital transformation, focus on client service excellence, continuous improvement programs and global simplification projects. Want more exclusive business insights like this delivered to your inbox?Subscribe Now This guide is intended to be used as a starting point in analyzing an employer’s payroll obligations and is not a comprehensive resource of requirements. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services. 1\. ZipRecruiter is a registered trademark of ZipRecruiter, Inc. 2\. Legal services are provided by Upnetic Legal Services, a third-party provider ### Finally, payroll & HR software designed for the construction industry Get Pricing[See Our Construction Solutions](/who-we-serve/by-industry/construction) ## Related resources - [ ![Payroll management system](/-/media/adp/resourcehub/rh2/images/insight/img/payroll-mgmt-system-586.jpg?h=294&iar=0&w=586&rev=be7f2985c9bb4457a9604afec8453e16&hash=9055B28F9E8E6982D48557A5ABD4C8EE) Insight ### Payroll management system Read Now ](/resources/articles-and-insights/articles/p/payroll-management-system) - [ FAQ ### What is a payroll register and how to use one? Learn More ](/resources/articles-and-insights/articles/w/what-is-a-payroll-register) - [ ![Outsourcing payroll](/-/media/adp/resourcehub/rh2/images/insight/img/outsourcing-payroll-616.jpg?h=308&iar=0&w=616&rev=4850ba97bb8e4e1ab7cadacb0ee445f8&hash=4551887C1835E7238CBBDECADB5F7D32) Insight ### Outsourcing payroll Read Now ](/resources/articles-and-insights/articles/o/outsourcing-payroll)