Glossary
Certified Payroll
Certified payroll is a mandatory weekly payroll report that contractors on US federally funded construction projects must file under the Davis-Bacon Act, recording each worker's job classification, hours, wages and fringe benefits to prove that prevailing wage rules have been met.
Reviewed by Teamed's in-house employment-law team·Last updated 28 July 2026
Also known as: Davis-Bacon certified payroll, prevailing wage payroll report
What is Certified Payroll?
Certified payroll is a specific US compliance report tied to government-funded construction. Under the Davis-Bacon Act, contractors and subcontractors working on federal or federally assisted building projects must submit a payroll report every week, showing each worker's classification, hours, pay rate, fringe benefits and deductions, together with a signed statement of compliance.
Its purpose is to prove that workers are paid at least the local prevailing wage the law requires for that type of work. The weekly report lets the contracting agency and the US Department of Labor check, week by week, that laborers and mechanics on the job are being paid correctly, including any fringe benefit amounts.
Certified payroll is a US federal construction rule, not a general global payroll concept. It matters mainly to contractors bidding on public works there. For most employers, the wider lesson is the principle behind it: statutory pay rules are enforced through documentation, and the burden falls on the employer to record and prove compliance.
Who has to file certified payroll?
Contractors and subcontractors performing work on US federal or federally assisted construction contracts above the Davis-Bacon threshold. It applies to laborers and mechanics on the site, across construction, alteration and repair work. Employers with no federal construction contracts do not deal with certified payroll at all; it is specific to publicly funded building work.
What goes on a certified payroll report?
Each worker's name, job classification, hours worked by day, pay rate, gross wages, deductions, net pay, and the fringe benefits provided. The report is filed weekly and carries a signed statement of compliance certifying the information is accurate and that everyone was paid at least the required prevailing wage for their classification.
What is the prevailing wage certified payroll proves?
The prevailing wage is the pay rate, including fringe benefits, that the US Department of Labor determines to be standard for a given job in a given area. On covered projects, contractors must pay at least this rate. Certified payroll is the weekly evidence that they have done so, submitted for the agency to review.
Key facts
- The standard form and its legal basis
- Certified payroll is commonly filed on Form WH-347, the Davis-Bacon and Related Acts weekly certified payroll form from the US Department of Labor. The requirement to furnish a weekly wage statement comes from the Copeland Act, codified at 40 U.S.C. 3145.Source: US Department of Labor, Wage and Hour Division· verified 2026-07-28
- When Davis-Bacon applies
- The Davis-Bacon Act applies to federal and District of Columbia contracts in excess of 2,000 US dollars for the construction, alteration or repair of public buildings or public works, where covered workers must be paid the local prevailing wage (40 U.S.C. 3142).Source: US Department of Labor· verified 2026-07-28
Regular payroll vs certified payroll
| Regular payroll | Certified payroll | |
|---|---|---|
| Who it applies to | Any employer | Contractors on covered US federal projects |
| Filing frequency | Set by the normal pay cycle | Weekly, for the project duration |
| What it proves | Employees were paid | Prevailing wage was paid, with a signed certification |
Frequently asked questions
Is certified payroll the same as normal payroll?
No. Normal payroll simply pays employees on the usual cycle. Certified payroll is an additional weekly report required on covered US federal construction projects, filed to prove that workers received at least the prevailing wage. A contractor runs its ordinary payroll and also submits certified payroll for the covered project.How often is certified payroll submitted?
Weekly, for as long as the covered work continues. The Copeland Act requires a wage statement each week for federally funded construction, so contractors file a certified payroll report every week of the project, each one certifying that workers were paid at least the required prevailing wage and fringe benefits.Do I need certified payroll if I hire outside the US?
No. Certified payroll is a US federal construction requirement under the Davis-Bacon Act. It does not apply to employment in other countries. If you hire abroad, your compliance obligations come from that country's own labour law and payroll rules, not from US prevailing wage reporting.What happens if certified payroll is wrong or missing?
It can lead to withheld contract payments, penalties, and debarment from future federal contracts, because the reports are how compliance with prevailing wage law is checked. Accurate weekly filing matters, since the certification is a signed legal statement that the wage requirements have been met.
Related terms
Note
Glossary
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Talk through your payroll complianceLast verified 2026-07-28