Certified payroll: a checklist for reviewing every sub's report

Review a certified payroll by checking the header, then every worker line against your wage determination, then the Statement of Compliance. If any item below fails, send the sub a correction before the report goes into the draw. This checklist is for the prime, who receives each sub's report; use it with any tool, or on paper.

It assumes a federal WH-347 or a state report with the same columns. Where state rules differ, such as daily overtime or apprentice ratios, this list does not cover them: your contract and agency do.

What should you check on the report header?

The header tells you whether this is the right report before you read a single worker line:

• The project name and number match the job.
• The week-ending date is the week you asked for.
• The contractor name is the sub you expect.
• The payroll number follows the last one, with no repeat and no skip.
• The report is not a duplicate of an earlier week.

A missing payroll number often means a report that never reached you, so look for the gap before you move on.

What should you check on each worker line?

Work down the rows one worker at a time against the wage table for the week-ending date:

• The classification is on your determination (or an alias you have accepted).
• The hourly rate is at least the base rate.
• If the rate shown is a total, it is at least base plus fringe, unless the sub marks fringes paid to plans.
• Hours by day add up to the total hours.
• If total hours are over 40, overtime hours are shown and the overtime rate is at least 1.5 times the base rate.
• Gross pay matches rate times hours, with the overtime premium.
• Only the last four digits of a social security number appear.
• Apprentice and trainee rows are set aside for a person to review against the program rules.

Federal overtime counts hours over 40 in a week; some states add daily overtime, so check yours before you rely on a weekly count alone.

What should you check on the Statement of Compliance?

• The statement is present on the second page.
• The signer, title and date are filled in.
• It is signed.
• The fringe method is stated: paid to plans, or in cash.

A person at your company still decides whether the signer is the right one. A tool can only tell you the fields are empty.

What happens after the check?

Do one of three things with each report, and write down which:

1. Clean: approve it and file it for the draw.
2. Exceptions: send the sub an email naming each worker line and what is wrong, with a place to upload the corrected file. Keep the first report on record, and mark the new one as the one that counts.
3. Missing: chase it. A weekly routine for collecting certified payroll from subcontractors keeps this from depending on memory.

Before the draw, confirm every sub on every job for the period is clean, resolved or explained, and keep the file with the reports.

How does Sub Certified Payroll run this checklist?

Sub Certified Payroll does the worker-line and statement items for you, from the wage table you enter for each project. For each approved report it flags a classification not on your table, a rate under base or under base plus fringe, overtime missing on hours over 40, gross pay that does not match rate times hours, a statement that is blank or unticked, a payroll number that repeats or skips, and a week with no report. You approve each report before it counts. Scanned PDFs need their rows typed, and apprentice rows are listed for you rather than checked.

It does not choose the right classification, check a worker's hours on other projects, apply state daily overtime, verify fringe plan payments or call a report compliant. Try the check on the sample job with no sign-up. For the form itself, see the WH-347 review guide; to compare tools, see software for certified payroll.

FAQ

What is certified payroll?

It is a weekly report of who worked on a public-works job, their classification, hours, rate and pay, with a signed statement that the wages are correct. A prime collects its subs' reports and submits them with the pay application.

Who has to review certified payroll reports?

On federal work the prime is expected to review its subs' payrolls before submitting them. Your agency and contract say how closely, so ask them.

What are the most common certified payroll errors?

In our review order they are a classification not on the determination, a rate under base, overtime missing on hours over 40, and an unsigned statement. The list above is built around them.