Certified payroll is a special type of weekly payroll report used by contractors and subcontractors working on federally-funded construction projects. The Davis-Bacon Act, passed in 1931, requires that workers on certain federally funded contracts be paid the prevailing wage rate for their geographic region. Certified payroll reports confirm that contractors and subcontractors working on these projects are paying their employees the required prevailing wages and fringe benefits. Failure to submit certified payroll reports on time or submitting reports that are incorrect or late may result in penalties and ineligibility for future projects funded by the federal government.

Certified payroll reports require specific information for employees working on covered federal projects, including the name of the employee, their Social Security Number, the number of withholding exemptions, and the total number of hours worked. Each payroll report must also contain a statement of compliance signed by the contractor, subcontractor, or authorized agent who pays or supervises the payment of covered workers. The prime contractor is responsible for submission of payrolls by all subcontractors[[5]](https://davisbacon.or...