How to Do Certified Payroll: 5 Procedures for Public-Works Contractors | EasyClocking by WorkEasy Software

How to Determine Applicable Prevailing Wages for a Public-Works Project

intermediate · 1 business day

This procedure identifies the correct wage rates, fringe benefits, and overtime rules for a specific public-works contract before payroll processing begins. Execute it at contract award to produce a project-level wage schedule that feeds every downstream procedure.

1. Confirm the Funding Source
Prerequisites
- Executed prime contract or subcontract identifying the funding source (federal, state, or local)
- Project location (county/city) and contract value confirmed
Open the executed prime contract or subcontract and identify whether the project is federally funded, state-funded, or both. This determination controls which prevailing-wage law applies.
- Federally funded contracts over $2,000 for construction trigger the Davis-Bacon Act.
- State-funded projects trigger the applicable state prevailing-wage law (for example, California's DIR Public Works requirements).
- Dual-funded projects require you to apply the higher of the two applicable rates for each classification.
Record the funding source in your project compliance register. Every subsequent step depends on this determination being correct. If the contract language is ambiguous, request written clarification from the contracting officer before proceeding.
Expected outcome: A documented funding-source determination (federal, state, or both) recorded in the project compliance register.
2. Retrieve the Wage Determination
Prerequisites
- Access to SAM.gov Wage Determinations Online or applicable state prevailing-wage portal
- Project county, state, and construction type confirmed
Pull the applicable wage determination (WD) using the project's county, state, and construction type.
- Federal projects: Navigate to SAM.gov Wage Determinations Online (WDOL). Search by state, county, and construction type (building, heavy, highway, or residential). Confirm the WD number and its modification date.
- California DIR projects: Access the DIR prevailing wage determination portal. Search by county, craft, and effective date.
- Other state projects: Locate the applicable state prevailing-wage portal and retrieve the determination using the project location and trade categories.
Always verify the WD modification date. Contracting agencies must incorporate the most current wage determination at contract award. Using an expired WD is one of the most common audit findings.
Expected outcome: A downloaded, current wage determination document with the correct WD number, modification date, and construction type for the project.
3. Map Classifications to Workers
Prerequisites
- Worker classification list (trade/craft categories expected on the project)
- Retrieved wage determination from previous step
Match every anticipated trade and craft classification on the project to a line item in the retrieved wage determination. Create a mapping table with these columns:
1. Worker name or role
2. Trade/craft classification from the wage determination
3. Required cash wage rate
4. Required fringe-benefit rate
Flag any worker whose expected duties do not align cleanly with a listed classification. Multi-trade workers (for example, a laborer who also operates equipment) need a classification assignment for each type of work they perform. Do not default ambiguous roles to the lowest-rate classification; this is a misclassification risk that triggers audit findings.
EasyClocking by WorkEasy Software allows payroll administrators to assign prevailing-wage classifications at the worker-profile level, so each clock-in maps to the correct wage rate automatically.
Expected outcome: A complete classification mapping table linking every anticipated worker role to a specific wage determination line item, with any unmapped classifications flagged for conformance.
4. Resolve Unlisted Classifications
Prerequisites
- Flagged unmapped classifications from the mapping step
- Contact information for the contracting officer or DIR office
If any worker classification does not appear in the wage determination, you must submit a conformance request before that worker begins covered work on-site.
- Federal projects: Submit the conformance request to the contracting officer, who forwards it to the DOL for approval. Include a description of the work duties, the proposed wage and fringe rate (which must be at least equal to the closest listed classification), and the rationale for the new classification.
- California DIR projects: Contact the DIR's Office of the Director to request a special determination or use the closest applicable published classification pending resolution.
Working an unlisted classification without a conformance approval is a reportable violation. Do not allow any worker to perform covered duties under an unapproved classification, even for a single day.
Expected outcome: Written conformance approval for every previously unlisted classification, or confirmation that all project classifications are covered by the existing wage determination.
5. Document Fringe-Benefit Obligations
Prerequisites
- Wage determination with fringe-benefit rates for each classification
- Company benefits plan documentation (if using bona fide plan method)
Record the fringe-benefit rate for each classification and confirm how your company will satisfy the obligation. There are two methods:
- Bona fide plan: Contributions to a qualified health, pension, vacation, or apprenticeship plan that meets DOL requirements. You must document the plan name, contribution rate per hour, and the plan administrator.
- Cash in lieu: Pay the fringe amount directly to the worker as additional hourly wages. This amount is taxable and must appear on the certified payroll report as a separate line.
You may also use a combination of both methods, provided the total meets or exceeds the required fringe rate. Record the chosen method for each classification in your project wage schedule. Omitting or undercalculating fringe-benefit contributions is one of the top audit findings on public-works projects.
Expected outcome: A documented fringe-benefit payment method (bona fide plan, cash in lieu, or combination) for every classification, with rates that meet or exceed the wage determination requirement.
6. Identify Overtime Rules
Prerequisites
- Funding source determination (federal, state, or both)
- Contract value confirmed (to determine CWHSSA applicability)
Prevailing-wage overtime rules vary by jurisdiction, and getting them wrong creates back-wage liability. Clarify the applicable rules before the first pay period.
- Davis-Bacon Act: Does not independently require overtime pay. However, the Contract Work Hours and Safety Standards Act (CWHSSA) applies to most federal contracts over $100,000 and requires time-and-a-half for all hours over 40 in a workweek.
- California DIR: State law requires daily overtime (over 8 hours in a day) and double-time (over 12 hours in a day), in addition to weekly overtime rules. These apply on top of prevailing-wage rates.
- Other states: Check whether the state imposes daily overtime, weekly overtime, or both on prevailing-wage projects.
Record the applicable overtime thresholds and multipliers for each jurisdiction in your project wage schedule. When a project is subject to both federal and state overtime rules, apply whichever provides the greater benefit to the worker.
Expected outcome: Documented overtime thresholds and multipliers for the project, specifying whether federal CWHSSA, state daily/weekly OT, or both apply.
7. Publish the Project Wage Schedule
Prerequisites
- Completed classification mapping, fringe-benefit documentation, and overtime rule identification from previous steps
Compile the wage determination mapping, fringe-benefit obligations, and overtime rules into a single project wage schedule document. Distribute it to:
1. The site supervisor (for posting at the job site as required by Davis-Bacon)
2. The timekeeping system administrator (for loading rates and classification rules into EasyClocking by WorkEasy Software or your time-capture platform)
3. The payroll processor (for configuring pay rates and fringe calculations)
The project wage schedule should include the WD number and modification date, every classification with its cash wage and fringe rate, the overtime rules, and the fringe-benefit payment method. Have the project manager or payroll administrator sign the document and date it. This signed wage schedule becomes the reference document for every pay period on the project and the first item an auditor will request.
Expected outcome: A signed, dated project-level wage schedule distributed to the site supervisor, timekeeping administrator, and payroll processor before the first day of covered work.

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How to Configure Payroll-Ready Time Capture for Prevailing-Wage Projects

intermediate · Half a business day

This procedure sets up your time-tracking system so every hour worked on a public-works project is recorded with the job, classification, and cost-code context required for certified payroll reporting, with zero manual cleanup at period end. Execute it before the project's first pay period.

1. Create the Project Record in the Time-Capture System
Prerequisites
- Completed project wage schedule from Procedure 1
- Administrative access to your time-tracking platform
Set up the project in EasyClocking by WorkEasy Software (or your time-tracking platform) with the following fields populated:
- Contract number and project name
- Funding source flag: federal, state, or both
- Applicable wage determination reference: WD number and modification date from Procedure 1
- Project location: address, county, and state
- Contracting agency name and prime contractor name (if you are a subcontractor)
This project record becomes the container for all time entries, classification assignments, and certified payroll exports. Every worker who clocks in against this project will inherit the wage rules and compliance fields you configure in the following steps. If your platform supports project-level templates, use one configured for prevailing-wage compliance to pre-populate the required fields.
Expected outcome: A project record in the time-capture system with the contract number, funding source, wage determination reference, and location populated and saved.
2. Load Worker Classifications into the System
Prerequisites
- Classification mapping table from Procedure 1
- List of all workers assigned to the project with their trade classifications
Assign each worker's prevailing-wage classification to their profile in the time-capture system. Use the classification mapping table from Procedure 1 as your source.
For workers who perform multiple trades on the same project (for example, a carpenter who also performs laborer duties), configure the system to require classification selection at each clock-in. This prevents a worker from logging all hours under a single classification when they actually performed work in two or more rate categories during the pay period.
EasyClocking by WorkEasy Software supports job-selection prompts at the time clock, mobile app, and web portal, so workers or supervisors confirm the correct classification before each shift begins. This eliminates the most common source of misclassification errors: retroactive guessing at period end about which trade a worker performed on which day.
Do not allow workers to self-select classifications without a validation step. Require supervisor approval or use system-enforced classification lists tied to the project's wage determination.
Expected outcome: Every worker assigned to the project has a prevailing-wage classification in their profile, and multi-trade workers are configured to select their classification at each clock-in.
3. Configure Cost-Code Mapping
Prerequisites
- Project cost breakdown structure or budget with cost codes
- Classification mapping table from Procedure 1
Map project cost codes to the certified payroll work classifications so that hours flow to the correct line on the WH-347 or DIR report without manual reclassification at period end.
1. List every cost code the project will use (from the project budget or cost breakdown structure).
2. Map each cost code to the corresponding prevailing-wage classification from the wage determination.
3. Enter the mappings into the time-capture system so that when a worker clocks in to a specific cost code, the system automatically associates the correct classification and wage rate.
This step is where most manual cleanup originates on prevailing-wage projects. If cost codes and classifications are not aligned in the system, the payroll administrator must manually reclassify hours every pay period before generating the certified payroll report. Investing time in this mapping now eliminates that recurring burden. The platform from EasyClocking by WorkEasy Software allows you to build these mappings at the project level, so they apply automatically to every time entry.
Expected outcome: Every project cost code is mapped to its corresponding prevailing-wage classification in the time-capture system, and a test clock-in against a cost code produces the correct classification and rate.
4. Enable Overtime-Rule Enforcement
Prerequisites
- Overtime rules documented in the project wage schedule from Procedure 1
- System administrator access to overtime rule configuration
Configure the time-capture system to calculate overtime automatically at the correct rate for the project's jurisdiction.
- Federal CWHSSA projects: Set the weekly overtime threshold at 40 hours with a 1.5× multiplier applied to the prevailing wage rate (base cash wage plus fringe, unless fringes are paid through a bona fide plan).
- California DIR projects: Enable daily overtime (over 8 hours at 1.5×), daily double-time (over 12 hours at 2×), and weekly overtime (over 40 hours at 1.5×). California rules apply in addition to any federal requirements on dual-funded projects.
- Other state projects: Configure the applicable state daily and weekly thresholds as identified in Procedure 1.
Verify that the system applies overtime to the correct wage base. On prevailing-wage projects, the overtime premium is calculated on the base prevailing wage rate, not a lower regular rate. Incorrect overtime bases are a frequent audit finding that results in back-wage obligations.
Expected outcome: The time-capture system automatically flags or calculates overtime at the correct threshold and multiplier for the project's jurisdiction, applied to the correct prevailing-wage base rate.
5. Activate Compliance-Field Prompts
Prerequisites
- Classification and cost-code configuration completed in previous steps
- Knowledge of jurisdiction-specific reporting fields (WH-347 or DIR form requirements)
Turn on all required compliance fields so that the data export at period end contains every element needed for the certified payroll report form.
Required fields include:
- Fringe-benefit tracking: The system must record fringe contributions per hour (or flag cash-in-lieu amounts) for each worker and classification.
- Straight-time vs. overtime split: Hours must be separated by type for each day of the pay period.
- California DIR apprentice ratio tracking (if applicable): If the project is DIR-covered and includes apprenticeable crafts, enable the apprentice tracking field so the certified payroll report reflects the required apprentice-to-journeyman ratio.
- Work classification per shift: If not already enforced in the classification loading step, require a classification stamp on every time entry.
EasyClocking by WorkEasy Software provides configurable compliance-field templates for prevailing-wage projects. Activate the template that matches your jurisdiction (federal, California DIR, or dual) to ensure no required field is missing from the export.
Expected outcome: All compliance fields required by the target certified payroll report form are active in the time-capture system, and a sample time entry populates every required field without manual override.
6. Run a Test Pay Period
Prerequisites
- All previous configuration steps completed
- Blank WH-347 or DIR certified payroll form available for field-by-field comparison
Process one week of test time entries before the project's first live pay period. This is the validation step that catches configuration errors before they compound across multiple reporting periods.
1. Enter test clock-in and clock-out records for at least one worker in each classification assigned to the project.
2. Include at least one overtime scenario (over 8 hours in a day for California DIR, over 40 hours in a week for CWHSSA) to verify overtime calculation.
3. Generate the certified payroll data export from the system.
4. Open the target report form (WH-347 or DIR format) and verify that every required field is populated by the export without manual edits: worker identification, classification, daily hours, straight-time and overtime split, wage rates, fringe benefits, and gross wages.
5. If any field is missing or incorrect, trace the error to the configuration step that produced it and correct it before clearing the test data.
Do not skip this step. Errors in cost-code mapping, overtime thresholds, or fringe-benefit fields surface only when real data flows through the configuration. A test run that takes a few hours now prevents weeks of manual correction later.
Expected outcome: A test certified payroll data export that populates every required field on the WH-347 or DIR form correctly, with zero manual edits needed, confirming the time-capture configuration is production-ready.

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How to Complete a Certified Payroll Report (WH-347 or DIR Format)

intermediate · Varies by workforce size; typically a few hours per pay period

This procedure walks through populating the WH-347 (federal) or California DIR certified payroll form for each pay period, including the Statement of Compliance. Execute it weekly or per pay period for every period in which covered work is performed.

1. Pull the Pay-Period Time Export
Prerequisites
- Validated time-capture configuration from Procedure 2
- All time entries for the pay period approved by supervisors
- Worker roster for the project current and complete
Generate the certified payroll data export from EasyClocking by WorkEasy Software (or your time-capture system) for the specific project and pay period. Before proceeding, verify two things:
1. Record count: The number of worker records in the export matches the number of workers who performed covered work during the pay period. A missing record means a worker clocked in under the wrong project or was not assigned to the project in the system.
2. Classification integrity: Every time entry carries the correct classification and cost code. Spot-check at least three workers whose roles changed during the period (for example, a laborer who operated equipment for two days).
If discrepancies exist, resolve them in the time-capture system before generating the final export. Corrections made at this stage are clean system edits with an audit trail. Corrections made after the report is signed require an amended submission and attract auditor scrutiny.
Expected outcome: A certified payroll data export for the pay period with the correct record count, classifications, and cost codes confirmed, ready for report population.
2. Populate Worker Identification Fields
Prerequisites
- Worker roster with Social Security Numbers or employee IDs on file
- Certified payroll data export from previous step
Enter each worker's identification information on the report form. The required fields differ by jurisdiction:
- Federal WH-347: Worker name, last four digits of Social Security Number, withholding exemptions, and work classification.
- California DIR: Worker name, full employee ID or SSN (depending on the agency's current form requirements), and work classification.
If your time-capture export includes these fields (as the platform from EasyClocking by WorkEasy Software does when worker profiles are fully configured), this step is a verification pass rather than manual data entry. Confirm that:
- Names match the worker's legal name as it appears on payroll records.
- SSN digits are correct (transcription errors here create audit flags).
- The classification listed matches the classification assigned in the time-capture system for the pay period.
For workers who performed multiple classifications during the pay period, list each classification on a separate line with the corresponding hours.
Expected outcome: All worker identification fields populated on the report form, with names, SSN digits, and classifications verified against payroll records.
3. Enter Hours and Earnings by Day
Prerequisites
- Certified payroll data export with daily hour detail
- Project wage schedule with current rates for each classification
Record straight-time and overtime hours worked each day of the pay-period week, the applicable hourly rate, and gross wages for each worker. The WH-347 and DIR forms both require a day-by-day breakdown.
1. Transfer the daily hours from the time-capture export to the report form. If the export auto-populates the form, verify at least three line items manually.
2. Confirm that the hourly rate for each classification matches the wage determination rate from your project wage schedule. Do not use the worker's "regular" company rate if it differs from the prevailing rate; the prevailing rate governs.
3. Calculate gross wages: (straight-time hours × base rate) + (overtime hours × OT rate). The form requires these totals per worker per pay period.
A common error is entering total weekly hours without the day-by-day breakdown. Both the WH-347 and DIR forms require daily detail, and auditors use this detail to verify overtime calculations. Missing daily breakdowns will trigger a correction request.
Expected outcome: Daily hours, applicable rates, and gross wages entered for every worker on the report form, with rates verified against the project wage schedule.
4. Calculate and Enter Fringe Benefits
Prerequisites
- Fringe-benefit payment method and rates documented in the project wage schedule
- Benefits plan contribution records (if using bona fide plan method)
Record fringe-benefit contributions per hour (or the equivalent cash in lieu) for each worker. This field is required on every certified payroll report, and leaving it blank is one of the most common audit findings.
- Bona fide plan: Enter the hourly contribution amount and the plan name. The total contribution for the pay period must equal or exceed the wage determination fringe rate multiplied by total hours worked.
- Cash in lieu: Enter the hourly cash amount added to the worker's wages. This amount appears as a separate earnings line on the report.
- Combination: Show both the plan contribution and the supplemental cash amount. The combined total must meet or exceed the required fringe rate.
Verify the total fringe obligation for each worker by multiplying the required fringe rate by total hours worked. Compare this to the actual contribution recorded. If the actual amount is less than the required amount, the report will show an underpayment, and you must correct it before the authorized signatory reviews the report.
Expected outcome: Fringe-benefit fields populated for every worker, with total contributions verified to meet or exceed the wage determination fringe rate for each classification.
5. Compute Gross-to-Net Deductions
Prerequisites
- Gross wages calculated in the previous step
- Payroll system deduction output for the pay period
Enter all deductions from gross wages: federal and state income tax withholding, FICA, voluntary deductions (union dues, 401(k) contributions, etc.), and fringe-plan employee contributions. Confirm that the net pay for each worker is correct.
There is one critical check at this step: no deduction may reduce the worker's effective hourly rate below the required prevailing wage. Voluntary deductions are permissible only if the worker has provided written authorization and the deduction does not cause the hourly earnings to fall below the prevailing rate. If a deduction creates this condition, flag it for review and either adjust the deduction or increase the gross wage before proceeding.
The platform from EasyClocking by WorkEasy Software exports gross wage data; your payroll system handles the deduction calculations. Verify that the payroll system's deduction output aligns with the gross figures in the certified payroll export before transferring the net amounts to the report form.
Expected outcome: All deductions entered and net pay confirmed for each worker, with verification that no deduction reduces the effective hourly rate below the prevailing wage.
6. Verify Overtime Calculations
Prerequisites
- Daily and weekly hours entered on the report form
- Overtime rules documented in the project wage schedule
Confirm that every hour exceeding the applicable overtime threshold is paid at the correct multiplier applied to the correct wage base.
- CWHSSA (federal): All hours over 40 in a workweek paid at 1.5× the base prevailing wage rate.
- California DIR: Hours over 8 in a day paid at 1.5×; hours over 12 in a day paid at 2×; hours over 40 in a week paid at 1.5× (apply the rule that provides the greater benefit when daily and weekly thresholds overlap).
Check the overtime wage base carefully. On prevailing-wage projects, overtime is calculated on the full prevailing wage rate, not a lower "regular" rate. If your company pays above the prevailing rate, confirm whether the contract requires overtime on the actual rate or the prevailing rate (Davis-Bacon requires only the prevailing rate as the base; some state programs require the actual rate).
Incorrect overtime calculations are a frequent source of back-wage liability. Verify at least every worker who logged overtime during the period.
Expected outcome: Every overtime hour verified to be paid at the correct multiplier applied to the correct prevailing-wage base rate, with no underpayments.
7. Complete the Statement of Compliance
Prerequisites
- All wage, hour, fringe, deduction, and overtime fields completed and verified on the report
Fill in the Statement of Compliance section at the bottom of the WH-347 or on the corresponding section of the DIR form. This is the legal certification that the contractor attests to the accuracy of the report.
Required fields include:
- Contractor or subcontractor name and address
- Project name and number
- Payroll number (sequential, starting with 1 for the project's first pay period)
- Pay-period dates
- Fringe-benefit payment method: check the correct box (bona fide plan, cash in lieu, or combination)
The Statement of Compliance certifies that all laborers and mechanics were paid the full prevailing wage and fringe benefits, that the classifications are accurate, and that the contractor has complied with the applicable labor standards. Signing a false Statement of Compliance carries legal consequences, including potential criminal penalties under federal law. Confirm the accuracy of every section of the report before routing it for signature.
Expected outcome: Statement of Compliance section fully populated with contractor information, project details, payroll number, pay-period dates, and the correct fringe-benefit method selected.
8. Obtain the Authorized Signature
Prerequisites
- Completed and verified certified payroll report with Statement of Compliance populated
- Identified authorized signatory with signing authority
Route the completed certified payroll report to the authorized signatory for execution. The signatory must be the contractor's owner, an officer of the company, or a designated agent with written authorization to sign on behalf of the company.
1. Provide the signatory with the completed report, the project wage schedule, and a summary of any exceptions or corrections made during the pay period.
2. Allow the signatory time to review the report. Do not pressure the signatory to sign without review; they are personally attesting to the report's accuracy.
3. Obtain a wet signature or electronic signature, depending on the contracting agency's requirements. Many agencies now accept electronic signatures through their submission portals.
EasyClocking by WorkEasy Software supports electronic signature routing for the Statement of Compliance, so the signatory can review and execute the report from any device without waiting for a physical document. Once signed, the report is ready for submission through the procedure described in Procedure 4.
Expected outcome: A signed certified payroll report with an executed Statement of Compliance, ready for submission to the contracting agency or DIR.

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How to Submit Certified Payroll Reports to the Contracting Agency or DIR

beginner · Under one hour per submission

This procedure delivers signed certified payroll reports to the correct receiving authority within the required timeframe and produces a timestamped submission record for audit defense. Execute it immediately after the signed report is produced in Procedure 3.

1. Identify the Submission Channel
Prerequisites
- Signed certified payroll report from Procedure 3
- Contract labor compliance program requirements or agency compliance manual on file
Confirm the contracting agency's required submission method before your first submission. Do not assume the channel; check the contract's labor compliance program requirements or the agency's compliance manual.
Common submission channels include:
- LCPtracker: A web-based portal used by many federal, state, and local agencies for certified payroll collection and review.
- California DIR eCPR: The electronic certified payroll reporting system required for DIR-covered public works projects.
- Agency-specific portal: Some agencies operate their own submission systems with unique login credentials and formatting requirements.
- Email submission: Some smaller agencies accept certified payroll reports as PDF attachments to a designated compliance email address.
- Physical delivery: Rare, but some agencies still require hard-copy submission.
Record the confirmed submission channel, portal URL, login credentials, and the agency contact for submission questions in your project compliance register. You will use this information every pay period.
Expected outcome: The correct submission channel identified and documented in the project compliance register, with portal credentials confirmed and tested.
2. Format the Report for the Channel
Prerequisites
- Submission channel and format requirements confirmed in the previous step
- Signed certified payroll report ready for export
Export or convert the completed report to the file format required by the submission channel.
- PDF: Most portal and email submissions accept PDF. Confirm the file naming convention required by the agency (for example, "ContractorName_ProjectNumber_PayrollNumber.pdf").
- XML or CSV: The California DIR eCPR system accepts specific electronic formats. EasyClocking by WorkEasy Software generates eCPR-compatible exports directly from the certified payroll module, eliminating the need for manual format conversion.
- LCPtracker format: LCPtracker has its own data import template. If your time-capture system does not export in LCPtracker format natively, you will need to map fields to the LCPtracker template before upload.
Verify the formatted file before submission. Open it and confirm that all fields are populated, the formatting is intact (no truncated names or shifted columns), and the Statement of Compliance signature is legible.
Expected outcome: A correctly formatted certified payroll file matching the submission channel's requirements, verified for completeness before upload.
3. Submit via the Designated Channel
Prerequisites
- Formatted certified payroll file from the previous step
- Submission deadline confirmed and calendared
Upload or deliver the report through the confirmed submission channel. Follow these steps based on the channel type:
- Portal submission (LCPtracker, eCPR, or agency-specific): Log in, navigate to the correct project, select the pay period, upload the file, and confirm the submission. Watch for validation errors; most portals run automated checks and will reject files with missing required fields.
- Email submission: Attach the formatted file to an email addressed to the designated compliance contact. Include the project number, payroll number, and pay-period dates in the subject line.
- Physical delivery: Print the report, confirm the signature is present, and deliver via certified mail or hand-delivery with a signed receipt.
Submit within the required timeframe. Federal Davis-Bacon projects typically require submission within seven days of the pay-period end. California DIR requires submission within seven days as well. Missing the deadline is itself a compliance finding, independent of the report's accuracy.
Expected outcome: The certified payroll report submitted through the designated channel within the required deadline.
4. Capture the Submission Confirmation
Prerequisites
- Completed submission from the previous step
Save the proof of submission immediately. This confirmation is your primary audit defense for timeliness.
- Portal submission: Save the confirmation number, screenshot the confirmation page, and download any confirmation email the portal generates.
- Email submission: Save the sent email with timestamp and any read receipt or auto-reply from the agency.
- Physical delivery: Retain the certified mail receipt or hand-delivery signature.
The submission confirmation from EasyClocking by WorkEasy Software is logged automatically when you use the platform's certified payroll submission workflow, creating a permanent record tied to the project and pay period. If your submission method does not generate an automatic confirmation, create one manually by logging the date, time, method, and any reference number in your project compliance register.
Expected outcome: A saved, timestamped submission confirmation (portal confirmation number, email receipt, or delivery receipt) filed in the project record.
5. Log the Submission in the Project Compliance Register
Prerequisites
- Submission confirmation from the previous step
- Project compliance register template or system
Record the following details in your project's certified payroll compliance register:
1. Pay-period start and end dates
2. Payroll number (sequential)
3. Submission date
4. Submission channel used
5. Confirmation number or receipt reference
6. Name of the person who submitted
7. Any agency feedback or rejection notices received
This register is a running record of every certified payroll submission for the project. It serves two purposes: it gives you a quick reference to confirm that no pay periods have been missed (gaps in the register are a red flag), and it provides the documentation backbone for audit response. If your time-capture platform maintains this log automatically, verify its accuracy monthly rather than maintaining a parallel manual log.
Expected outcome: The submission logged in the project compliance register with all required fields completed, and the register showing no gaps in the pay-period sequence.
6. Distribute Copies to Required Parties
Prerequisites
- Confirmed submission to the contracting agency
- Subcontract reporting requirements reviewed (if applicable)
After submission to the contracting agency, distribute copies of the certified payroll report as required by your contract and applicable law.
- Subcontractors submitting to a prime contractor: Provide a copy to the prime contractor within the timeframe specified in the subcontract (typically the same seven-day window).
- Prime contractors with subcontractors: Collect and review subcontractor certified payroll reports for completeness before forwarding to the contracting agency. You are responsible for the accuracy of your subcontractors' reports in most federal contracts.
- Internal retention: Retain a copy of every submitted report in the project file for the required retention period. Federal Davis-Bacon requires a minimum of three years after project completion. California DIR also requires at least three years. Retain both the submitted report forms and the underlying time-capture source records.
Store retained copies in a secure, accessible location. Auditors may request historical reports months or years after project completion; you need to produce them promptly.
Expected outcome: Copies distributed to all required parties (prime contractor, subcontractors as applicable), and a retained copy stored in the project file for the required retention period.

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How to Respond to a Certified Payroll Audit or Compliance Finding

advanced · Varies; initial response preparation typically takes several business days, with the full corrective-action cycle running up to two weeks

This procedure covers the investigation, correction, and documentation steps when a contracting agency, DOL Wage and Hour Division, or California DIR identifies a deficiency in your submitted certified payroll reports. Execute it upon receipt of any official compliance notice.

1. Acknowledge Receipt and Note the Response Deadline
Prerequisites
- Written audit notice or compliance finding from the contracting agency, DOL, or DIR
- Labor-compliance counsel identified and available
Confirm receipt of the audit notice or compliance finding in writing to the issuing agency. Calendar the response deadline immediately.
DOL and DIR deadlines are firm. Missing a response deadline can escalate a routine finding into a formal enforcement action, withholding of contract payments, or debarment proceedings. If the notice does not state an explicit deadline, contact the issuing officer within two business days to confirm the expected response timeframe.
Notify your labor-compliance counsel as soon as the notice is received. Back-wage calculations and admissions in corrective-action letters carry legal weight, and counsel should be involved from the first step. Also notify the project manager and the payroll administrator so they can begin assembling records in parallel.
Expected outcome: Written acknowledgment sent to the issuing agency, response deadline calendared, and labor-compliance counsel and project team notified.
2. Pull the Full Submission History
Prerequisites
- Complete project certified payroll submission history (all pay periods)
- Access to original time-capture records for the project
Retrieve every certified payroll report submitted for the project, plus the underlying time-capture exports for the periods cited in the finding.
You need both the submitted report forms (the PDFs or electronic files the agency received) and the raw time-capture data (clock-in/clock-out records, classification selections, supervisor approvals). Auditors routinely request the raw time data, not just the report forms, to verify that the reports accurately reflect actual hours worked.
EasyClocking by WorkEasy Software exports raw clock-in and clock-out records, classification selections, and supervisor approvals by worker and period. This source-data package is the foundation of your audit response. If your time-capture system does not retain this level of detail, you will need to reconstruct the data from payroll records and supervisor logs, which is significantly more time-consuming and less defensible.
Organize the records by pay period and worker. Create an index that maps each cited finding to the specific pay period and worker records involved.
Expected outcome: A complete, indexed set of submitted certified payroll reports and underlying time-capture records for the project, organized by pay period and cross-referenced to the findings in the audit notice.
3. Reproduce the Finding Independently
Prerequisites
- Indexed submission history and time-capture records from the previous step
- Project wage schedule with rates and fringe obligations
Recalculate the wages, classifications, and fringe benefits for the cited workers and periods to confirm whether the finding is accurate or erroneous.
1. For each cited worker and period, pull the raw time-capture hours and the classification assigned at clock-in.
2. Apply the wage determination rates from your project wage schedule to those hours.
3. Calculate gross wages, overtime premiums, and fringe benefits independently of the submitted report.
4. Compare your independent calculation to the figures on the submitted certified payroll report and to the figures cited in the audit finding.
There are three possible outcomes:
- Finding is accurate: Your report understated wages, misclassified workers, or underpaid fringes. Proceed to the root-cause and back-wage steps.
- Finding is erroneous: Your calculations confirm the report was correct. Prepare a written rebuttal with supporting documentation.
- Finding is partially accurate: Some cited discrepancies are valid and others are not. Separate the confirmed issues from the disputed ones and address each individually.
Expected outcome: An independent recalculation for every cited worker and period, with each finding classified as confirmed, erroneous, or partially accurate.
4. Identify the Root Cause
Prerequisites
- Independent recalculation results from the previous step
For every confirmed deficiency, determine where in the five-procedure workflow the error originated. Common root causes fall into four categories:
- Wage determination error (Procedure 1): The wrong WD was applied, an expired WD was used, or a classification was mapped to the wrong rate.
- Time-capture configuration error (Procedure 2): Workers clocked in under the wrong classification, cost codes were mismatched, or the overtime threshold was set incorrectly.
- Report completion error (Procedure 3): Data was transcribed incorrectly from the time-capture export to the report form, fringe fields were left blank, or the overtime calculation used the wrong wage base.
- Fringe-benefit calculation error (Procedure 3): Contributions fell short of the required rate, the wrong payment method was applied, or plan contributions were not credited correctly.
Document the root cause for each finding. This documentation becomes part of your corrective-action package and demonstrates to the auditor that you understand how the error occurred and can prevent recurrence.
Expected outcome: A documented root-cause determination for every confirmed deficiency, tracing each error to a specific step in the certified payroll workflow.
5. Calculate Back Wages Owed (If Applicable)
Prerequisites
- Root-cause analysis confirming underpayment
- Wage determination rates and fringe obligations for the affected periods
- Labor-compliance counsel available for review
If underpayment is confirmed, calculate the gross back-wage amount per worker per period. This calculation must be precise; it forms the basis of the corrective payment and will be reviewed by the auditing agency and, in many cases, by your labor-compliance counsel.
1. For each affected worker and period, calculate the difference between what was paid and what should have been paid under the wage determination (including fringe benefits and overtime premiums).
2. Sum the back-wage amounts by worker across all affected periods.
3. Prepare a back-wage payment schedule showing each worker's name, classification, affected periods, underpayment per period, and total owed.
Have your labor-compliance counsel review the calculation before finalizing. Back-wage calculations carry legal weight, and errors in the correction can create additional liability. Do not issue back-wage payments until counsel has reviewed and approved the amounts and the payment method (direct payment to workers, or payment into a trust per the contracting agency's instructions).
Expected outcome: A counsel-reviewed back-wage payment schedule showing each affected worker, the underpayment per period, and the total amount owed.
6. Prepare and Submit the Corrective-Action Package
Prerequisites
- Amended reports prepared
- Root-cause explanation drafted and reviewed by counsel
- Back-wage payments issued (if applicable) with documentation
Assemble the corrective-action package for submission to the auditing agency. A complete package includes:
1. Amended certified payroll reports for every affected pay period, correcting the identified errors (classification, rate, fringe, overtime, or all of the above).
2. Written root-cause explanation describing how the error occurred, which procedure step failed, and what systemic correction has been or will be implemented.
3. Back-wage documentation (if applicable): the payment schedule, proof of payment to affected workers (canceled checks, direct deposit confirmations), and any required interest calculations.
4. Supporting source data: the time-capture exports, wage determination, and project wage schedule that support the amended figures.
Submit the package through the same channel used for regular certified payroll submissions, unless the audit notice specifies a different submission method. Retain a copy of everything submitted, including the submission confirmation.
Expected outcome: A complete corrective-action package submitted to the auditing agency within the response deadline, with a timestamped submission confirmation retained in the project file.
7. Implement Systemic Corrections to Prevent Recurrence
Prerequisites
- Root-cause analysis completed and documented
- Corrective-action package submitted
The corrective-action package addresses the past deficiency. This final step addresses the future. Update the specific procedure step where the root cause originated:
- Wage determination error: Re-run Procedure 1 for the project. Verify the current WD, update the project wage schedule, and redistribute it to all stakeholders.
- Time-capture configuration error: Re-run Procedure 2. Correct the classification assignments, cost-code mappings, or overtime rules in EasyClocking by WorkEasy Software and run a new test period to verify the fix.
- Report completion error: Add a verification checkpoint to Procedure 3 for the specific field that was incorrect. If the error was caused by manual data entry, evaluate whether auto-population from the time-capture export can eliminate the manual step.
Document the systemic correction in the project compliance register, including the date implemented, the person responsible, and how the fix was verified. This documentation closes the audit loop and demonstrates to the agency that the contractor has taken corrective action beyond simply paying back wages.
Expected outcome: A documented systemic correction implemented in the time-capture system, wage schedule, or reporting procedure, verified through a test cycle, and logged in the project compliance register.

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How to Determine Applicable Prevailing Wages for a Public-Works Project

1. Confirm the Funding Source

2. Retrieve the Wage Determination

3. Map Classifications to Workers

4. Resolve Unlisted Classifications

5. Document Fringe-Benefit Obligations

6. Identify Overtime Rules

7. Publish the Project Wage Schedule

How to Configure Payroll-Ready Time Capture for Prevailing-Wage Projects

1. Create the Project Record in the Time-Capture System

2. Load Worker Classifications into the System

3. Configure Cost-Code Mapping

4. Enable Overtime-Rule Enforcement

5. Activate Compliance-Field Prompts

6. Run a Test Pay Period

How to Complete a Certified Payroll Report (WH-347 or DIR Format)

1. Pull the Pay-Period Time Export

2. Populate Worker Identification Fields

3. Enter Hours and Earnings by Day

4. Calculate and Enter Fringe Benefits

5. Compute Gross-to-Net Deductions

6. Verify Overtime Calculations

7. Complete the Statement of Compliance

8. Obtain the Authorized Signature

How to Submit Certified Payroll Reports to the Contracting Agency or DIR

1. Identify the Submission Channel

2. Format the Report for the Channel

3. Submit via the Designated Channel

4. Capture the Submission Confirmation

5. Log the Submission in the Project Compliance Register

6. Distribute Copies to Required Parties

How to Respond to a Certified Payroll Audit or Compliance Finding

1. Acknowledge Receipt and Note the Response Deadline

2. Pull the Full Submission History

3. Reproduce the Finding Independently

4. Identify the Root Cause

5. Calculate Back Wages Owed (If Applicable)

6. Prepare and Submit the Corrective-Action Package

7. Implement Systemic Corrections to Prevent Recurrence

How These Procedures Connect

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