General contractors working on Davis-Bacon and prevailing wage projects must submit a Statement of Compliance with each certified payroll report. While the form is short, the legal weight behind it is significant. A signed Statement of Compliance certifies, under penalty of perjury, that all wage and hour information reported is accurate and complies federal prevailing wage requirements.
Because the Statement of
Compliance is signed by an authorized company representative, contractors
should carefully review classifications, wage rates, fringe benefits, and
deductions before each submission.
What Is a Statement of Compliance?
A Statement of
Compliance is a signed declaration that accompanies every certified payroll
report on federally funded construction projects. It certifies that workers
have been paid the correct prevailing wage rate for their classification and
that all reporting information is accurate and complete.
On the federal WH-347 form, the Statement of Compliance appears on the final page of the form, after the payroll data. It is not a separate document or an optional attachment. A certified payroll submission is incomplete without it.
Many states with their
own prevailing wage laws require a state-specific Statement of Compliance
form. The
core certification language is generally consistent with the federal version,
though formatting and submission methods vary by jurisdiction.
What the Statement of Compliance Certifies
When an authorized
company representative of the company signs the Statement of Compliance, they
are certifying four things under penalty of perjury. First, that all payroll
information for the workweek is correct and complete. Second, that every
laborer and mechanic has been paid no less than the applicable prevailing wage
rate for their proper classification. Third, that all
deductions from worker pay are legal and properly disclosed. Fourth, that fringe benefits have been paid
through approved plans, in cash directly to workers, or a documented
combination of both.
False certifications can
result in civil and criminal penalties for both the company and the individual
who signed.
Statement of Compliance Form: Section Breakdown
The Statement of
Compliance form is divided into four sections.
Section 1: Identifying Information This section includes the date, the name and title of the signatory, the contracting company name, the project name or number, and the payroll workweek dates. The dates must match the corresponding WH-347 exactly. This section must be completed by an individual authorized to sign certified payroll reports on behalf of the company.
Sections 2 and 3: Certification Statements These sections contain the legal attestations. No information is entered here. By signing, the authorized representative acknowledges that the wages, classifications, and deductions are accurate and compliant with Davis-Bacon Act Requirements.
Section 4: Fringe
Benefit Reporting This section documents how fringe benefits are paid:
- Box 4(a): Fringes paid into approved
plans, funds, or programs
- Box 4(b): Fringes paid in cash
directly to employees
- Box 4(c): A combination of both
methods, with details recorded in the Exceptions chart
An authorized representative
of the contractor of the firm must sign at the bottom of Section 4 to complete
the certification.
Why the Statement of Compliance Matters for General Contractors
For general contractors,
the Statement of Compliance carries liability that extends beyond your own
crews. Under Davis-Bacon, the prime contractor is responsible for collecting,
reviewing, and submitting certified payroll reports from every subcontractor on
the project. Prime contractors are responsible for collecting and reviewing
certified payroll reports from subcontractors and may face liability if
compliance issues are not identified and addressed.
Penalties for inaccurate
or fraudulent Statements of Compliance include:
- Withheld progress payments until
compliance issues are resolved
- Back wages and liquidated damages
owed to underpaid workers
- Debarment from federal contracts
for up to three years
- Knowingly false certifications
may result in significant penalties, including potential liability under
federal false statement and false claims laws.
Common Statement of Compliance Mistakes
Several errors appear
repeatedly in Statements of Compliance for certified payroll:
- Mismatched payroll dates between the SOC and the
corresponding WH-347
- Unauthorized signatory, such as a project manager
signing without signing authority
- Incorrect fringe benefit box
selection in Section 4, or skipping the Exceptions chart when fringes
are split between methods
- Worker classification errors, where employees performed work
outside their primary classification but were paid at the original rate
- Unreviewed subcontractor
submissions passed through without verification
Each of these errors
creates audit risk and potential personal liability for the signatory.
Simplifying Statement of Compliance Reporting
Manual certified payroll
processes increase the risk of error on every Statement of Compliance.
Inaccurate dates, incorrect fringe selections, and unreviewed subcontractor
reports are common when general contractors rely on paper forms and
spreadsheets across multiple projects and subcontractors.
eMars certified payroll software automates the data validation behind every Statement of Compliance. The platform cross-checks payroll entries against applicable wage determinations, flags classification and fringe errors before submission, and centralizes subcontractor compliance in one dashboard. The WH-347 form is available through eMars, including the Statement of Compliance.
Ready to reduce compliance risk on every certified payroll submission? Contact eMars today to schedule a demo.
Using the New WH-347? The DOL released a revised version of the WH-347 in January 2025, officially in effect since January 6, 2025. The form structure and fringe benefit reporting sections have changed. The breakdown above reflects the previous version, which remains valid through September 30, 2026.
