Subcontractor Certified Payroll: Requirements, Deadlines, and Common Mistakes

Who Needs to Submit Certified Payroll?

Under the Davis-Bacon Act and the Copeland Anti-Kickback Act, every contractor and subcontractor performing work on a covered federal construction project must submit weekly certified payroll reports using Form WH-347.

This requirement applies at every tier:

• Prime contractor — submits its own certified payroll directly to the contracting agency.
• First-tier subcontractors — submit certified payroll to the prime contractor.
• Second-tier and lower subcontractors — submit to the contractor directly above them in the chain, who then passes it up to the prime.

There is no minimum contract value, no minimum number of employees, and no exemption based on the type of trade. If your workers set foot on a Davis-Bacon covered jobsite, you owe a WH-347 every week they work.

Sub vs. Prime Responsibilities: The Chain of Compliance

Understanding who is responsible for what is critical — because the consequences of getting it wrong fall hardest on the prime contractor.

The subcontractor's job: Complete an accurate WH-347 form each week, signed under penalty of perjury, and deliver it to the prime contractor (or to the sub above you in the chain) within the required deadline.

You must pay workers at or above the prevailing wage rate listed in the wage determination incorporated into the contract, including the correct fringe benefit amount.

The prime contractor's job: Collect certified payroll from every subcontractor at every tier, review the submissions for completeness and obvious errors, and submit the full set to the contracting agency.

The prime must also ensure that every sub is paying the correct prevailing wage. If a sub underpays, the prime doesn't get to say "that's their problem."

Joint Liability: The Prime Pays for the Sub's Mistakes

This is the single most important concept for both primes and subs to understand. Under Davis-Bacon, the prime contractor has joint and several liability for wage violations committed by any subcontractor on the project.

This means:

• If a sub underpays workers, the contracting agency can withhold payments from the prime to cover back wages.
• If a sub fails to submit certified payroll, the prime's contract payments can be held until all submissions are current.
• If a sub's violations are severe enough, the prime can face debarment alongside the sub.

You cannot contract away joint liability. Even if your subcontract agreement says the sub is solely responsible, the federal government will still hold the prime accountable.

That subcontract clause may give you a right to sue the sub for reimbursement, but it won't stop the DOL from withholding your payments or the agency from issuing a debarment referral.

First Time on a Federal Project? Here's What Subcontractors Need to Know

The Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) have poured hundreds of billions into federally-funded construction. Thousands of subcontractors are working on Davis-Bacon covered projects for the first time.

If that's you, here's the short version:

1. Get the wage determination. Ask the prime contractor for the wage determination that's incorporated into the contract. This document lists the prevailing wage rates and fringe benefits for every trade classification on the project. Do not use rates from SAM.gov unless you've confirmed they match the contract.
2. Classify workers correctly. Match each worker to the classification that reflects the work they actually perform — not their job title, not what they did on your last project. If a worker performs duties in two classifications during a single day, pay the higher rate for all hours unless you track the time in each classification separately.
3. Track fringe benefits separately. The prevailing wage has two components: the base hourly rate and the fringe benefit rate. You can pay fringe as cash added to the hourly wage, contribute it to bona fide benefit plans, or use a combination. Either way, you must report it accurately on the WH-347.
4. Submit certified payroll weekly. Use Form WH-347 (the standard certified payroll form). Submit it to your prime contractor within seven days after each payroll period ends. Don't wait until the end of the month or the end of the project.
5. Keep records for three years. Federal law requires you to maintain payroll records for at least three years after the project is complete. Keep copies of every WH-347 you submit, every wage determination you reference, and documentation of all fringe benefit contributions.

Weekly Submission Deadlines

Certified payroll is due weekly — within seven calendar days after the end of each payroll period. Here's how the timeline works:

• Payroll week ends Saturday. Your WH-347 for that week is due by the following Saturday.
• Prime contractor deadlines may be tighter. Many primes require subs to submit by Wednesday or Thursday of the following week so they have time to review and compile submissions before the agency deadline.
• Format varies. Some agencies accept paper forms. Many now require electronic submission through platforms like LCPtracker, eMars, or the agency's own portal. The prime contractor will tell you the required format and submission method.
• No-work weeks still matter. If your workers didn't perform any work during a given week, you may still need to submit a "no work performed" report depending on the agency and prime contractor requirements. Confirm this with the prime at the start of the project.

What Happens If a Sub Doesn't Submit

When a subcontractor fails to submit certified payroll, the consequences cascade upward.

For the subcontractor: The prime contractor will likely withhold payment until the sub's payroll is current. The contracting agency can initiate an investigation.

If the investigation reveals underpayment, the sub faces back wage liability. Repeated or willful failure to submit can lead to debarment, criminal prosecution, and False Claims Act liability.

For the prime contractor: The contracting agency can withhold contract payments from the prime until all subcontractor payrolls are submitted. The prime may receive a notice of non-compliance, which goes into the contract file and can affect past performance evaluations.

If the missing payrolls mask wage violations, the prime shares liability under joint and several liability rules.

Common Subcontractor Mistakes

1. Using the Wrong Wage Determination

The wage determination incorporated into the prime contract is the one that governs. Some subs pull rates from SAM.gov without realizing that the contract may reference an older determination that was locked in at bid time.

Always get the wage determination directly from the prime contractor and verify it matches the contract.

2. Misclassifying Apprentices

Apprentices can be paid below the full journeyman rate — but only if they are registered in a bona fide apprenticeship program approved by the DOL or a state apprenticeship agency.

If the apprentice isn't properly registered, you must pay the full journeyman rate. Listing a worker as an "apprentice" without a valid registration is a common and costly mistake.

3. Not Tracking Fringe Benefits Separately

Many subs lump fringe benefits into the hourly cash wage and report a single blended rate on the WH-347. This creates audit problems because the DOL needs to verify that the fringe component meets or exceeds the required amount.

Report the base rate and fringe benefits separately, exactly as shown on the wage determination.

4. Submitting Late or Inconsistently

Late submissions are a red flag for investigators. Even if you paid the correct wages, chronic late filing suggests disorganization at best and concealment at worst.

Set a weekly calendar reminder. Better yet, use a tool like our free WH-347 generator to reduce the time it takes to prepare each form so you never miss a deadline.

5. Incomplete or Unsigned Forms

Every WH-347 must include a signed Statement of Compliance. An unsigned form is as good as no form at all.

Similarly, leaving fields blank — project name, contractor address, payroll number — gives the contracting agency grounds to reject the submission and request a corrected version, creating delays and extra work. Read our step-by-step WH-347 guide to make sure every field is filled correctly.

How Primes Should Manage Sub Payroll Compliance

Because joint liability makes the prime financially responsible for sub violations, smart prime contractors take an active role in managing subcontractor payroll compliance:

• Set clear expectations at kickoff. Hold a pre-construction meeting with every sub. Cover the wage determination, submission deadlines, required format, and consequences of non-compliance. Put it in writing.
• Review every submission. Don't just collect and forward. Check that rates match the wage determination, classifications match the work being performed, fringe benefits are reported separately, and the Statement of Compliance is signed.
• Tie payment to compliance. Include a clause in every subcontract that conditions progress payments on current, complete certified payroll submissions. This gives you leverage to enforce deadlines without relying on the contracting agency to intervene.
• Track submissions centrally. Maintain a log of which subs have submitted for which weeks. When a gap appears, follow up immediately — don't wait for the agency to notice.
• Use compliance tools. Manual tracking across dozens of subcontractors is error-prone. Tools like our WH-347 generator help subs produce accurate forms, which means fewer rejections and resubmissions for the prime to manage.