Top Mistakes to Avoid on Certified Payroll Reports
Certified payroll reports (CPRs) are a non-negotiable requirement for contractors working on public works or federally funded projects governed by the Davis-Bacon Act. While the intention of CPRs is to ensure workers are paid fairly, the process of preparing and submitting them can be complex and filled with traps for even experienced contractors.
At Davis Bacon Solutions, we’ve seen firsthand how small reporting mistakes can lead to wage restitution, penalties, or even project delays. Here are the top reporting errors to avoid—and how you can fix them before they cost your business.
1. Misclassifying Worker Roles
One of the most common issues is placing a worker in the wrong wage classification. For example, labeling a general laborer as a skilled operator, or assigning an apprentice the duties of a journeyman.
Why It Matters:
Each classification has its own prevailing wage rate. Misclassification often leads to underpayment, which can result in back wages owed during a DOL audit.
Solution:
Always refer to the project-specific wage determination before assigning roles. For help interpreting wage classifications, visit our Wage Determination Guide.
2. Improper Calculation of Fringe Benefits
Many contractors struggle with calculating fringe benefits correctly—especially when offering them as cash in lieu of benefits.
Common Error:
Including only base hourly wages while leaving out fringe benefit requirements.
Solution:
Make sure the total hourly compensation (wage + fringe) meets or exceeds the required rate. Check out our Fringe Benefits Compliance Overview for a breakdown.
3. Incomplete or Late Submission of WH-347 Forms
Form WH-347 must be submitted weekly and must be complete, accurate, and signed.
Mistakes Include:
Missing classifications
Incomplete Social Security digits
Incorrect project information
Lack of a signature on the statement of compliance
Solution:
Create a checklist before submitting your CPR each week.
Need help filling out Form WH-347 or figuring out what it even is?
We broke it all down in plain English—step by step. No legal jargon, no guesswork.
👉 Check out our easy WH-347 guide here
4. Inconsistency Across Multiple Jobs
If you have workers moving between jobs with different wage determinations, failing to track and classify them correctly can lead to inconsistencies.
Solution:
Use a centralized digital system to track hours and classifications across multiple projects. This minimizes risk and ensures consistency during audits.
5. Improper Use of Apprentices and Trainees
Many contractors unknowingly violate ratio rules for apprentices or fail to document their enrollment in a DOL-approved program.
Solution:
Always verify:
Program enrollment
Required supervision
Approved apprentice-to-journeyman ratio
Maintain a separate log for apprentice hours and documentation.
6. Failing to Keep Organized Payroll Records
You’re required to keep payroll records for at least three years. Disorganized or missing records are a liability if you're selected for a federal or state audit.
Solution:
Implement a secure file storage system and label each CPR clearly by project, date, and employee group. We offer tools at Davis Bacon Solutions to help streamline this process for busy contractors.
Bonus Tip: Not Understanding Local vs Federal Requirements
State prevailing wage laws may have additional requirements. For example, California's DIR rules differ from federal Davis-Bacon requirements in several areas.
Solution:
Work with a compliance partner who understands the nuances of your project’s jurisdiction. We assist contractors nationwide to remain compliant on both the state and federal levels.
Submitting certified payroll reports correctly the first time saves time, avoids legal risk, and protects your business reputation. With multiple agencies involved—from the DOL to project owners—accuracy and consistency are essential.
If you're unsure whether your payroll reports are up to standard, Davis Bacon Solutions can help.
👉 Schedule a consultation with us.