Construction Certified Payroll Explained

Streamline your construction payroll process with our certified payroll software - easy, accurate, and efficient.

Certified Payroll for Construction Companies

As a contractor or subcontractor looking to secure federal government-funded construction projects, it is essential to be familiar with the requirement of submitting certified payroll records. These records demonstrate that your company is committed to paying workers fairly and complying with prevailing wage laws. In this article, we will delve into the concept of construction-certified payroll, its significance, and how it ensures fair wages for workers. This provides security for businesses in more ways than one.

Understanding Construction Certified Payroll

Certified payroll refers to a detailed report that contractors and subcontractors must submit regularly to the federal government agency overseeing the construction project. This report includes comprehensive information about the wages paid to each employee, including fringe benefits, deductions, and hours worked.

The certified payroll records must adhere to specific formatting and be certified by an authorized company representative, affirming that the information provided is accurate and complete. These records are typically submitted weekly, although the frequency may vary depending on the project and government agency requirements.

The Significance of Certified Payroll in Federal Government Projects

Certified payroll records serve multiple purposes, including ensuring fair wages for workers involved in federal government-funded construction projects. Here are some key reasons why certified payroll is crucial.

Prevailing Wage Compliance

One of the primary objectives of certified payroll is to ensure compliance with prevailing wage laws. Prevailing wage laws require contractors and subcontractors to pay workers the prevailing wage rate, typically determined by the state or local government. Certified payroll records provide transparency and accountability, allowing government agencies to verify that workers receive the appropriate wages.

Transparency and Anti-Fraud Measures

Certified payroll records promote transparency in the construction industry, preventing wage theft, underpayment, and fraudulent practices. By requiring contractors to submit detailed payroll information, government agencies can detect discrepancies and take appropriate action to rectify them.

Protecting Workers' Rights

Certified payroll records play a vital role in protecting workers' rights. Ensuring that workers are paid fair wages, these records help prevent exploitation, encourage compliance with labor laws, and promote a healthier and more equitable working environment.

Requirements for Certified Payroll

The purpose of the WH-347 form is to guarantee that you are compensating your employees with either the prevailing wage or the average wage for individuals in a particular occupation. This document demonstrates that your business is adhering to all prevailing wage regulations.

  • Business name: This is where you'll state whether you're a contractor or subcontractor.
  • Business address: Include your street, city, state, and zip code.
  • Payroll number: Payroll numbers show the weeks worked under your federal contract.
  • Week ending: State the last day of the work week.
  • Project and location: Identify the project you're working on and its location.
  • Project or contractor number: You can find this information on your contract for your public works project.

Next, you'll need to share each employee's information.

  • Their name.
  • The number of withholding exemptions.
  • The employee's job classification. This may be a painter, foreman, electrician, etc.
  • Their total hours worked.
  • The employee's pay rate, including fringe benefits. Remember, their rates must meet prevailing wage requirements.

eMars' Automatic WH-347 Form Generation

The Compliant Client streamlines your work process by automatically generating WH-347 forms. Right after payroll is signed, the WH-347 is immediately produced and ready to be dispatched as per the owner's instructions. Whether the preference is email, snail mail, or electronic monitoring, this feature caters to every agency's unique needs. Experience the power of automation and simplify your compliance journey with us.

The Davis-Bacon Act

The Davis-Bacon Act, established in 1931 by Congress, is a crucial safeguard for workers, ensuring they receive fair wages. It mandates that you adhere to certified payroll requirements if your business is awarded a government contract exceeding $2,000 for public building construction, alterations, or repairs.

Over the years, subsequent legislation has reinforced the enforcement of prevailing wage laws alongside the Davis-Bacon Act. Prominent examples of such acts include the Housing and Community Development Act of 1974, the Federal-Aid Highway Act, and the Federal Water Pollution Control Act. These measures work in tandem to uphold equitable compensation standards and protect workers' rights in various sectors.

How to Stay in Compliance with Certified Payroll

If you're a contractor for public works projects, eMars' Compliant Client is your one-stop shop for staying compliant with the Davis-Bacon Act.

Frequently Asked Questions

Q Who is exempt from certified Payroll?


Certified payroll does not require those who serve in executive, managerial or administrative roles.

Q How does eMars Help With Construction Certified Payroll?


Our Compliant Client offers a plethora of features to make sure your certified payroll is in compliance.

Q What Are Common Compliance Issues?

  • Proper Classification and Payment of Workers
  • Fringe Benefits
  • Apprentices

Our team can help you navigate specific issues and common mistakes.

Compliance Check Payroll in Just 2 Minutes

What Makes Us The Best...

eMars began as Contract Compliance in 1993. The system then was mainframe positioned and was used to process contractor payrolls on HUD housing construction projects.

Web Based

Our web-based payroll compliance solution is designed to simplify the process of managing your company's compliance obligations

Easy to Learn

Whether you are a beginner or an experienced user, our software and services are easy to navigate and understand. We also offer comprehensive training and support to ensure that our customers get the most out of our products.

Easier to Use

With a user-friendly interface and intuitive design, you can quickly and easily navigate through all of your payroll tasks. Our software also helps you stay up-to-date with all compliance regulations, ensuring that your business stays in compliance at all times.

Secure Platform

Our data secure platform ensures that your payroll is always compliant with the latest regulations, so you can focus on growing your business. With eMars, you can rest assured that your payroll is in good hands.

State Specific Features

    Our payroll compliance solution comes equipped with 18 special reports that can help you with a range of activities. And if you need a report that is not already available, our system allows for new reports to be prepared with ease.

    Certified Payroll

      Our payroll entry system allows you to manually enter all employees individually or copy from a previous week. You can also import from an Excel spreadsheet, and Emars will prepare the mapping to import the payrolls for both the Prime and the subs.

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