Certified Payroll Reporting: What You Need to Know About How to Build Form WH-347

If you’re new to the prevailing wage (PW) world as a newcomer, you may be apprehensive regarding the weekly certified payroll reporting requirements, and you are not sure where to start. Without the essential backup, submission becomes impossible. Here are the steps for setting up certified payroll.

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The first step involves the careful setup of PW jobs, a prerequisite for compliance. This deliberate approach ensures not only compliance but also establishes a systematic foundation for future reporting endeavors.

Steps for Prevailing Wage Compliance

• Designating a job as state or federal prevailing.
• Choosing the city/county where the work is being performed.
• Adding the project number and location.
• Notating the start date when site work begins.
• Attaching the current wage decision to the job.
• Identifying tasks your employees work on.
• Mapping pay rates for those classifications according to the assigned wage determination.

Certified Payroll Reporting

Once you’re set, you can pay your employees. Ideally, time is tracked via a system that’s simple for employees to clock in/out and choose the exact job and task. You should utilize smart construction payroll software designed to separate PW from private jobs and can ensure current wage and fringe requirements are being met according to the Davis-Bacon Act. This includes any overtime, shift differentials, deductions allowed by law, or other requirements unique to the particular job.

How to Complete Wage Hour Form 347

After you’ve processed and posted, you’re ready to create certified payroll reports to submit to the contracting authority. An industry standard you may have already heard of is the Wage Hour Form 347 (WH-347) which can be created manually or via reporting software used by your contracting agency, such as LCP Tracker. While the form can appear daunting, it’s just a matter of dropping all payroll numbers into the correct spot.

WH-347 First Line – Certified Payroll

The first line of the report includes information about your own company – name, contractor or subcontractor, and address. Payroll Number begins with a “1” for your first project payroll and increases consecutively with each week. Week Ending is the last date of the payroll week you’re reporting. The Project and Location are the job site information. In the last box, enter the number assigned by the contracting agency.

WH-347 Columns 1-9 – Certified Payroll

Continuing, Columns 1-9 are for dropping in payroll data from your reporting week. It must exactly match your payrolls and you could be asked to supply a pay stub backup later to verify the accuracy. A breakdown of each column includes:

Column 1 – Identification

Individual employee name and identifying information. Often the last four digits of the employee’s social security number, address, or phone number.

Column 2 – Exemptions

Employee exemptions. This isn’t required for certified payroll but can be used for your convenience.

Column 3 – Task Performed

True task the employee performed on-site. It must match the classification from the project contract and the official wage determination. If an employee has multiple tasks, they must each have their own line.

Column 4 – Hours Worked by Day

Hours worked by day. With overtime hours on the top and straight-time hours below.

Column 5 – Site Hours

Total job site hours. Must match the employee pay stub.

Column 6 – Overtime and Straight-time

Overtime and straight-time pay rates per task. This can include any fringes paid to the employee in cash split out into the second slot.

Column 7 – Gross Pay

Gross pay for all PW hours goes above the slash. Below the slash is the total gross pay for all jobs worked by the employee in the week, regardless of PW or private.

Column 8 – Deductions

Deductions starting with FICA, the combined employee withholdings for Social Security and Medicare taxes. With-Holding Tax is designated for federal payroll taxes or FIT. The two middle columns allow you to enter your tax designations – usually State or Local.

• The “Other” column is for any remaining deductions permissible by law, such as insurance premiums, 401(k) contributions, or child support. The Total Deductions column adds up all tax and miscellaneous deductions for the week.

Column 9 – Total Net Pay

Total net pay matching the employee’s pay stub. This is calculated by Gross Pay (Column 7) minus Total Deductions (Column 8).

WH-347 Page 2

On Page 2, describe anything listed in the Other Deductions section of Column 8, or attach a third page breaking down deductions and fringes for each employee.

Other sections on Page 2 include the date of submission; the name and title of the person compiling, submitting, and signing the form; and other project information.

WH-347 Item 4

Item Number 4 is one of the most confusing portions of the WH-347.

• Check box 4(a) you pay all your fringe benefits to approved plans, funds, or programs.
• If you instead pay the fringe amount as cash to your employees, check box 4(b).
• Employers who split fringes with partially paid in cash to employees and partial to qualifying plans should check both boxes 4(a) and 4(b).
• Any exceptions and remarks are noted in box 4(c), followed by the Signatory Party’s name and signature.

Now you’re ready to save and submit your report to the contracting agency.

No Work Non-Performance Report

Even if you have a non-performing week, you still must submit a certified payroll report and utilize the current Payroll Number. Some contracting agencies will allow a WH-347 with “Zero Hours Worked” printed on the form, but others will require a Statement of Non-Performance that can be created with the following information.

How to Make the Certified Payroll Process Easier with Software

Even though you’re inserting the same information from your weekly payroll to the WH-347, it can still be time-consuming and overwhelming. Not only do you have to perform double entries, but you must also make sure you haven’t made any data entry errors.

eBacon can streamline this process. Our system was created to help payroll managers in contracting firms, like you, who are struggling with prevailing wage concerns and certified payroll reporting. Not only can our system autofill WH-347s with your payroll data so you don’t have to rekey it, but you also have the option of creating a file to upload directly into reporting software like LCP Tracker.

Put This Certified Payroll Example Into Action Now!

Additional Resources to turn this Certified Payroll Example into reality:

• Ultimate Certified & Prevailing Wage FAQ
• Certified Payroll FAQ
• Certified Payroll Best Practices

FAQs on Prevailing Wage and Certified Payroll Reporting

The material presented here is educational in nature and is not intended to be, nor should be relied upon, as legal or financial advice. Please consult with an attorney or financial professional for advice.