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Certified Payroll Compliance Procedure

Document Type: Procedure
Version: 1.0
Last Updated: February 2026
Distribute To: Payroll, Project Managers, Field Supervisors
Applicable: Public Works, Prevailing Wage Projects

Purpose​

Establish procedures for accurate certified payroll reporting on public works and prevailing wage projects to ensure compliance with federal and state requirements.

When Certified Payroll is Required​

Federal (Davis-Bacon):​

  • Federal contracts over $2,000
  • Federally funded projects
  • Federal loan/grant projects

California:​

  • State public works over $1,000
  • Local government projects
  • Charter school construction
  • Projects with public funding

Penalties for Non-Compliance:​

  • Wage restitution to workers
  • Civil penalties ($200+/day/worker)
  • Debarment from public work
  • Criminal penalties (willful violations)

Certified Payroll Requirements​

Information Required:​

FieldDescription
Employee nameFull legal name
AddressCurrent mailing address
SSNLast 4 digits (California) or full (Federal)
ClassificationTrade/craft per wage determination
Hours workedDaily and weekly by project
Hourly rateMust meet or exceed prevailing
Gross wagesTotal compensation
DeductionsItemized
Net wagesAmount paid
Fringe benefitsPaid or credited

Submission Requirements:​

JurisdictionFormFrequencySubmit To
FederalWH-347WeeklyAwarding agency
CaliforniaA-1-131WeeklyAwarding body & DIR

Prevailing Wage Determination​

Finding the Correct Rate:​

Federal (Davis-Bacon):

  1. Check contract for wage determination
  2. Or search: sam.gov/wage-determinations
  3. Use determination in effect at bid time

California:

  1. DIR website: dir.ca.gov/dlsr/pwd
  2. Search by county and craft
  3. Use rate in effect at bid advertisement

Wage Determination Components:​

ComponentDescription
Basic hourly rateCash wages
Fringe benefitsHealth, pension, vacation, training
Total hourlyBasic + fringes

Meeting the Rate:​

Option A: Pay total in cash
Basic rate + Fringe rate = Total hourly rate paid

Option B: Pay basic + provide benefits
Basic rate (cash) + Fringe rate (benefits) = Compliant

Option C: Split cash and benefits
Cash wages + Benefits provided ≥ Total required rate

Worker Classification​

Correct Classification Critical:​

  • Use classification matching actual work
  • Don't under-classify to save costs
  • When in doubt, use higher classification
  • Document work performed

Common Classifications:​

ClassificationTypical Work
Laborer Group 1General labor, cleanup
Laborer Group 2Skilled labor, signals
CarpenterFraming, forming, finish
ElectricianElectrical installation
PlumberPlumbing installation
Operating EngineerEquipment operation
IronworkerSteel erection, rebar

Split Classification:​

If worker performs multiple classifications in same day:

  • Track hours by classification
  • Pay appropriate rate for each
  • Document on certified payroll

Time Tracking for Certified Payroll​

Requirements:​

Daily Records Must Show:

  • Project worked
  • Classification
  • Hours by classification
  • Start and end times
  • Breaks taken

GPS Time Tracking Benefits:​

  • Proves worker on project site
  • Accurate start/end times
  • Reduces disputes
  • Audit-ready documentation

Software Integration:​

BLDR Time:

  • GPS clock-in/out
  • Project/cost code assignment
  • Classification tracking
  • Automatic rate lookup
  • Certified payroll report generation

Weekly Certified Payroll Process​

Step 1: Collect Time Records​

By End of Pay Period:

  • All time cards submitted
  • GPS records verified
  • Classifications confirmed
  • Projects identified
  • Supervisors approved

Step 2: Verify Rates​

For Each Worker:

  • Classification correct
  • Rate meets prevailing wage
  • Fringe benefits calculated
  • Overtime calculated correctly

Step 3: Calculate Wages​

Overtime Requirements:

JurisdictionDaily OTWeekly OT
FederalNoneOver 40 hrs
CaliforniaOver 8 hrsOver 40 hrs
CaliforniaOver 12 = 2×7th day = 1.5×/2×

Prevailing Wage OT: OT rate = 1.5 × (Basic rate + Fringe rate)

Step 4: Complete Certified Payroll Form​

Include:

  • All required fields
  • All workers on project that week
  • Zero hours if no work that week
  • Statement of compliance
  • Authorized signature

Step 5: Submit​

Federal:

  • Weekly to contracting officer
  • Keep copies 3 years

California:

  • To awarding body weekly
  • Upload to DIR eCPR system
  • Keep copies 3 years

California eCPR (Electronic Certified Payroll)​

Registration Required:​

  • All contractors on public works
  • Register at dir.ca.gov
  • Annual fee per project

Submission Process:​

  1. Log into eCPR system
  2. Upload XML file or enter manually
  3. Submit within time requirements
  4. Receive confirmation

BLDR Time Integration:​

  • Generates eCPR-compatible reports
  • Exports XML for upload
  • Maintains compliance records

Apprenticeship Requirements​

California Requirements:​

  • Minimum apprentice hours (varies by trade)
  • Registered apprentices only
  • DAS 142 forms submitted
  • Training fund contributions

Tracking:​

  • Apprentice hours by project
  • Journeyman/apprentice ratio
  • Training contributions paid

Fringe Benefits​

Acceptable Fringe Benefits:​

TypeDocumentation
Health insurancePlan documents, contributions
Pension/401(k)Plan documents, contributions
VacationAccrual records
Training fundContribution receipts

Annualization Not Allowed:​

Cannot spread fringe benefits across all hours—must be calculated per hour worked on covered project.

Cash in Lieu:​

If not providing benefits, must pay fringe amount in cash.

Common Violations​

ViolationRiskPrevention
Under-classificationWage restitution, penaltiesProper classification training
Rate shortfallBack wages, penaltiesVerify rates weekly
Missing recordsPenalties, debarmentComplete daily tracking
Late submissionPenaltiesCalendar reminders
Overtime miscalculationBack wagesUse software
Apprenticeship shortfallPenaltiesTrack ratios

Audit Preparation​

Records to Maintain (3+ years):​

  • Time cards (signed)
  • Payroll records
  • Certified payroll reports
  • Wage determinations used
  • Fringe benefit documentation
  • Apprenticeship records
  • Contractor/subcontractor payments

If Audited:​

  1. Cooperate with auditor
  2. Provide requested records
  3. Document all requests
  4. Correct any issues found
  5. Consider legal counsel for significant issues

Subcontractor Compliance​

GC Responsibilities:​

  • Include prevailing wage requirements in subcontracts
  • Collect certified payroll from subs
  • Verify sub compliance
  • Submit or retain sub CPRs

Subcontractor Requirements:​

  • Same as prime contractor
  • Submit CPR to GC weekly
  • Maintain own records

Certified Payroll Checklist​

================================================================
       WEEKLY CERTIFIED PAYROLL CHECKLIST
================================================================

Project: ___________________________________________________

Week Ending: _______________________________________________

================================================================

PREPARATION:
☐ All time records collected
☐ GPS data verified
☐ Classifications confirmed
☐ Prevailing wage rates verified
☐ Overtime calculated correctly
☐ Fringe benefits calculated

FORM COMPLETION:
☐ All workers listed
☐ All required fields complete
☐ Hours match time records
☐ Rates meet or exceed prevailing
☐ Deductions itemized
☐ Statement of compliance signed

SUBMISSION:
☐ Copy to awarding body
☐ Uploaded to eCPR (California)
☐ Copy retained in file
☐ Subcontractor CPRs collected

================================================================

Prepared By: _______________________  Date: _________________

Reviewed By: ______________________  Date: _________________

================================================================
  • Timesheet Procedure
  • Prevailing Wage Compliance
  • Payroll Processing
  • Subcontract Requirements

Software Integration​

BLDR Time:

  • GPS time tracking
  • Classification tracking
  • Prevailing wage rate lookup
  • Certified payroll report generation
  • eCPR export
  • Audit-ready records

References​

  • Davis-Bacon Act (40 U.S.C. 3141-3148)
  • California Labor Code 1720-1861
  • DIR Prevailing Wage Information
  • 29 CFR Parts 1, 3, and 5

Template provided by support.construction. Certified payroll compliance made manageable.