If you're a contractor or subcontractor working on a
federally funded project, you've likely come across Form WH-347—the document
required for certified payroll reporting. Understanding how to fill out
certified payroll correctly is crucial for compliance with the Davis-Bacon Act,
which mandates that workers receive fair wages on public works projects.
Many businesses struggle with the WH-347 form because
of its detailed reporting requirements. However, with the proper guidance,
filling it out can be pretty straightforward.
What is Certified Payroll?
Before discussing the specifics of Form WH-347, it's important to understand the meaning of certified payroll and why it matters. Certified payroll reporting is a key component of government-funded projects. Employers must submit a weekly certified payroll report using Form WH-347, which includes:
- The worker's name and Social Security Number identification number. This is usually the last four digits of the Social Security number.
- Job classification
- Hours worked (regular and overtime)
- Hourly wage rate and overtime rate
- Fringe benefits that apply to the hours on the project
- Taxes, deductions, and net gross wages paid
Submitting incorrect or incomplete payroll reports can lead to compliance violations and penalties.
Why is Form WH-347 Important?
The WH-347 form serves as an official
record proving compliance with federal wage laws. Government agencies use these
reports to verify that contractors are paying employees fairly.
The key benefits of Form WH-347 include:
- Legal
Compliance: Ensures contractors follow Davis-Bacon requirements.
- Transparency: Provides
a clear breakdown of wages, fringes, deductions, and hours worked.
- Accountability: Helps
prevent wage theft or unfair labor practices.
To simplify the process, let's go through a
WH-347 example, detailing how to fill out certified payroll accurately.
How to Fill Out Form WH-347
Filling out a sample certified payroll report may
seem daunting at first, but it becomes much easier once you understand each section. Let's break it down:
1. Contractor and Project Information
At the top of Form WH-347, enter your company's name, the wage determination name, company address, payroll number, and payroll week ending date. Then, specify the project name, contract number, and project location.
This section ensures that the payroll report is linked to the correct job.
2. Employee Details
List each employee who worked on the project, including:
- Full
name
- The last four digits of the employee's Social Security number
- Job classification
(e.g., laborer, electrician, carpenter)
Each classification must match the federally approved wage
determination for that project. Misclassification can lead to compliance
violations.
3. Workweek and Hours Worked
Specify the workweek ending date, then record:
- Daily
hours worked for each employee
- Total
hours worked per week
- Overtime
hours (if applicable)
The certified payroll template requires overtime pay
calculations for hours exceeding 40 per week, typically at 1.5 times the
standard rate.
4. Wages Paid
Enter each worker's base hourly wage and the total wages
earned for the period. Include:
- Straight-time
earnings
- Overtime
pay
- Fringe
benefits (if applicable)
Federal guidelines require contractors to pay the prevailing
wage, which includes base pay plus fringe benefits. If fringe benefits are not paid
to an approved plan, they must be paid as additional wages in cash.
5. Deductions and Net Pay
This section lists any deductions from wages, such as
federal, state, and local taxes, union dues, and contributions to health
insurance or retirement plans.
Subtracting deductions from gross earnings provides the net
pay—the amount each employee receives.
6. Certification Statement
At the bottom of the WH-347 form, an authorized
representative must sign, certifying that the payroll is accurate, employees
have received at least the required prevailing wages, and no unauthorized
deductions have been made.
This signature legally confirms compliance with the
certified payroll report requirements.
WH-347 Example: A Sample Certified Payroll Report
To better understand how the WH-347 form should look when
completed, let's consider an example:
Imagine a contractor working on a federally funded project. The weekly certified payroll report includes:
- Five
workers: two electricians, one carpenter, and two general laborers.
- Each
worker's hours, wages, and job classification match the prevailing wage
schedule.
- The
contractor deducts taxes and union dues appropriately.
- The
report is signed and submitted to the appropriate agency.
A correctly filled certified payroll report ensures
compliance, avoiding costly penalties.
Common Mistakes When Filling Out the WH-347 Form
Even experienced contractors make mistakes when
completing Form WH-347. Here are some pitfalls to avoid:
- Misclassifying
Workers - Each job role has a set prevailing wage rate. Ensure
employees are classified correctly.
- Failing
to Report Fringe Benefits - If benefits are paid separately from
wages, they must be listed.
- Inaccurate
Overtime Calculations - Overtime pay must reflect federal labor
laws.
- Missing
Signatures - The certification statement must be signed to
validate the report.
Businesses can streamline reporting and reduce errors by using a certified payroll template.
Certified Payroll Reporting Best Practices
To make certified payroll reporting easier, follow these tips:
- Use
Payroll Software - Many accounting tools generate a certified
payroll template automatically.
- Double-Check
Wage Determinations - Ensure workers are classified correctly
under federal guidelines.
- Submit
Reports on Time - Late submissions can result in penalties.
- Train
Your Team - Educate HR and payroll staff on compliance
requirements.
Staying organized and proactive helps avoid issues with
certified payroll reports.
Summary: Why Certified Payroll Reporting Matters
Understanding how to fill out certified payroll accurately
is essential for compliance with federal contract regulations. The WH-347
form provides a standardized way to report wages, ensuring fair pay
for workers on public projects.
By following WH-347 instructions carefully
and avoiding common mistakes, contractors can maintain compliance, avoid
penalties, and streamline their reporting process. Using a sample
certified payroll report as a guide makes the process easier.
If you're looking to simplify reporting, consider eMars'
payroll software - Compliant Client. Compliant Client audits contractor payrolls
and generates WH-347 forms automatically, making payroll reporting easy for
you.
Proper certified payroll reports protect
your business and keep your projects running smoothly. Contact eMars today to schedule a demo or speak to someone about our certified
payroll software.