Understanding the WH-347 Form: A Crucial Document for Federal Construction Contractors

Navigating the complexities of federal construction contracts requires meticulous attention to detail, particularly when it comes to compliance with wage standards. The WH-347 form is a pivotal document in this process, mandated for weekly submission on federal projects exceeding $2,000. As required by the Davis-Bacon Act, this form allows the government to ensure that contractors are adhering to prevailing wage standards. Properly understanding and managing the WH-347 form is essential for avoiding noncompliance and the expensive penalties that can accompany it. This blog post will guide you through the purpose, requirements, and key information needed to master the WH-347 form, ensuring your projects remain compliant and your operations run smoothly.

In a short summary:

• The WH-347 contains the detailed weekly payroll data for each worker (Certified Payroll).
• The WH-348 is the compliance statement certifying the accuracy of the WH-347 payroll reports.

Table of Contents

1. What is the Purpose of the WH-347 Form (Certified Payroll)?
2. When is Form WH-347 Required for Contractors?
3. What Key Information Must Be Included?
4. How to Fill Out Form WH-347
5. WH-347 vs. WH-348

What is the Purpose of the WH-347 Form?

The WH-347 form ensures contractors and subcontractors comply with the Fair Labor Standards Act regulations and other prevailing wage laws on federally funded or assisted construction projects. By requiring detailed wage information, it helps verify that workers are compensated fairly according to stipulated wage determinations and labor law regulations. The form plays a crucial role in ensuring transparent and lawful operations in the construction industry.

When is Form WH-347 Required for Contractors?

Form WH-347, also known as the Certified Payroll Form, is mandatory for contractors working on federally funded construction projects. Here’s an in-depth look at when this form is required:

• Davis-Bacon Act Requirements: This legislation mandates the submission of certified payroll reports for government construction contracts. Form WH-347 must be filed for any federal contract valued at $2,000 or more, covering the construction, alteration, or repair of public buildings or public works.
• Federal Assistance Projects: This requirement extends to contractors working on federally assisted contracts funded through grants, loans, loan guarantees, and insurance. The Davis-Bacon Act’s wage standards apply to all 50 states, Washington D.C., and U.S. territories.
• Additional Federal Statutes: Over 60 other federal statutes also require prevailing wage compliance on assistance agreements. Agencies such as the U.S. Department of Transportation, HUD, and EPA mandate the submission of payroll forms to verify adherence to prevailing wage requirements.

In summary, Form WH-347 is required for any construction contract valued at $2,000 or more involving federal funding or assistance. This applies to both prime contractors and subcontractors on covered projects.

What Key Information Must Be Included?

The WH-347 form requires comprehensive details, including:

• Employee names, social security numbers, and job classifications
• Daily and total hours worked each week
• Hourly wage rates and fringe benefits
• Gross wages earned before deductions
• Deductions for federal and state taxes, insurance, and other items
• Net wages paid after deductions

Accurate completion of this form is crucial to demonstrate compliance with wage standards.

How to Fill Out Form WH-347

To properly fill out the WH-347 Certified Payroll Report form, follow these steps:

1. Company Information: Enter your company name and check whether you are the contractor or subcontractor. Provide your company's address.
2. Payroll Number: Number each payroll sequentially, starting with 1 for the first report. Mark the last one as "Final." For payroll weeks where no work was performed, state “No Work.”‍
3. Pay Period: Enter the week ending date for the pay period.‍
4. Project Details: Provide the project name, location, and contract number.

Worker Information

Column 1: Employee’s Data:

Enter each worker's full name and an identifying number (e.g., last 4 digits of SSN).

Column 2: Number of Exemptions from Withholding:

This column is optional.

Column 3: Work Classification:

List the worker's job classification exactly as stated in the wage determination for the contract.

Column 4: Day and Date:

Enter the day and date, then the straight time and overtime hours worked each day.

Column 5: Total Hours:

This will auto-populate to show the total hours worked.

Column 6: Rate of Pay:

Enter the hourly wage rate, including fringe benefits paid in cash.

Column 7: Gross Amount Earned:

Enter the gross wages earned on this contract in the top row, and the total gross wages earned on all projects in the bottom row.

Column 8: Deductions and Net Pay:

First column: FICA (social security and Medicare). Second column: Federal withholding and state withholding. Use the remaining columns for other deductions.

Column 9: Net Wages Paid for Week:

Show the net wages paid for the payroll week (gross wages minus deductions).

Be sure to sign the certification on the bottom, attesting that the information provided is correct and complete. Provide any additional notes or exceptions as needed.

WH-347 vs. WH-348

The main difference between the WH-347 and WH-348 forms lies in their purpose and the information they contain:

WH-347 - Payroll Form:

This is the weekly certified payroll report that contractors and subcontractors must submit when working on federally funded or assisted construction projects. It contains detailed payroll information for each worker on the project.

WH-348 - Statement of Compliance:

This is a supplemental certification form that accompanies the WH-347 payroll reports. It serves as a written statement from the contractor or subcontractor certifying that the payrolls are correct and complete, and that each worker has been paid no less than the proper prevailing wage rate.

In summary:

• The WH-347 contains the detailed weekly payroll data for each worker.
• The WH-348 is the compliance statement certifying the accuracy of the accompanying WH-347 payroll reports.

Both forms are required submissions for contractors on federal construction projects over $2,000 to demonstrate compliance with prevailing wage laws like the Davis-Bacon Act.

Conclusion

By understanding the importance of the Certified Payroll form (WH-347 & WH-348) and adhering to its requirements, federal construction contractors can ensure compliance with prevailing wage laws and avoid significant penalties. Regular submission and accurate reporting are key to maintaining a transparent and fair working environment on federal projects.

For more detailed information and guidance, visit the U.S. Department of Labor's website or consult with a compliance expert.