Certified payroll glossary: the terms on the form, in the regulation, and on the job

Definitions follow the regulation's wording where the regulation defines the term, and common usage where it does not. Terms are alphabetical.

All Agency Memorandum (AAM). Guidance the Department of Labor issues to federal agencies on Davis-Bacon administration. AAM 130 and 131 define the 4 types of construction.

Annualization. The method for crediting fringe contributions to a plan that covers all of a worker's time: total annual contribution divided by total annual hours, covered and uncovered, gives the creditable hourly amount. Fringe benefits.

Apprentice. A worker individually registered in an apprenticeship program registered with the Department's Office of Apprenticeship or a recognized state apprenticeship agency, or, in the first 90 days of probationary employment, certified by the registration agency as eligible for probationary employment. Anyone else is owed the journeyworker rate. Apprentices.

Area practice. How work is assigned among crafts in the locality, used to decide which classification a task belongs to when more than one could claim it.

Basic hourly rate. The cash wage component of the prevailing wage listed on the wage determination, exclusive of fringe. Column 6A on the WH-347. Overtime is 1.5 times this figure, or 1.5 times the higher cash rate actually paid.

Bona fide fringe benefit. A benefit provided through a plan, fund, or program that meets 29 CFR part 5, subpart B: medical, pension, life insurance, vacation, holiday, apprenticeship training, and similar. Legally required payments such as FICA and workers' compensation are not fringe.

Cash in lieu of fringe. Paying the fringe amount as additional hourly wages instead of into a plan. Reported in column 6C and included in the worker's gross.

Certified payroll. The weekly payroll report, with a signed Statement of Compliance, that each contractor and subcontractor on a covered project must submit. The WH-347 is the optional federal form. What certified payroll is.

Classification. The craft or trade category on the wage determination that fits the work performed, such as Electrician, Laborer Group 2, or Power Equipment Operator Group 4. Determines the rate.

Conformance. The process for adding a classification and rate to a wage determination for work no existing classification covers, requested on SF-1444 through the contracting agency and approved by the Wage and Hour Division. Conformances.

Contracting agency. The federal agency that awarded the contract or, under a Related Act, the federal agency administering the assistance. Receives certified payrolls directly or through the owner.

Contracting officer. The agency official with authority to award and administer the contract. Wage determinations, conformances, and withholding decisions run through this office.

Copeland Act. The 1934 anti-kickback statute and its regulations at 29 CFR part 3, which limit payroll deductions on covered projects and require the weekly Statement of Compliance. Deductions.

CWHSSA. The Contract Work Hours and Safety Standards Act, which requires overtime at 1.5 times the basic rate after 40 hours in a workweek on covered contracts over $100,000 and sets liquidated damages for violations. Overtime.

Davis-Bacon Act (DBA). The 1931 statute, now at 40 U.S.C. 3141 through 3148, requiring prevailing wages on federal construction contracts over $2,000. Coverage.

Davis-Bacon Related Acts (DBRA). The roughly 70 statutes that extend Davis-Bacon requirements to federally assisted construction, such as federal-aid highway, transit, and housing programs.

Debarment. Ineligibility to receive federal or federally assisted contracts for 3 years, imposed for disregard of Davis-Bacon obligations under 29 CFR 5.12.

Deduction. Any amount withheld from a worker's wages. On covered projects, limited to those 29 CFR 3.5 permits without approval and those the Secretary of Labor approves under 3.6. Columns 8 on the WH-347.

eCPR. California's electronic certified payroll reporting system, run by the Department of Industrial Relations for state public works. Requires full SSNs and addresses; separate from the federal WH-347. State requirements.

Fringe benefits. The second component of the prevailing wage, listed on the determination as an hourly amount and payable as plan contributions, cash, or both. Fringe benefits.

General wage determination. A wage determination published on SAM.gov for a county and type of construction, available for any covered project there. Contrast with a project wage determination issued for one project.

Gross amount earned. Column 7 on the WH-347, split into 7A (this project) and 7B (all work in the week) when the worker had other work.

Identifying number. The individually identifying number, such as the last 4 digits of the SSN or an employee ID, that replaces the full Social Security number on certified payrolls. Column 1E. Identifying numbers.

Journeyworker. A worker who has completed an apprenticeship or otherwise attained full skill in a craft and is paid the full rate. "J" in column 2 of the WH-347.

Laborer or mechanic. Workers whose duties are manual or physical, including apprentices, helpers, and working foremen for their manual time. Excludes executive, administrative, professional, and clerical employees.

Liquidated damages. Under CWHSSA, $33 per worker for each calendar day on which overtime was owed and not paid (adjusted periodically for inflation; $33 for 2025 and 2026), in addition to the back wages.

Modification. A numbered revision to a published wage determination. The modification in effect at bid opening (or contract award, for negotiated contracts) is the one that governs.

No-work payroll. A certified payroll for a week in which the contractor performed no work on the project, submitted to keep the sequence intact. No-work weeks.

Payroll number. The sequential number of the weekly payroll, starting at 1 for the first week of work and running through the payroll marked "Final."

Prevailing wage. The rate, basic plus fringe, that the Wage and Hour Division has determined prevails for a classification in the area, as listed on the wage determination.

Prime contractor. The contractor holding the contract with the agency or owner. Responsible for submitting all subcontractor payrolls and for subcontractor compliance. Prime responsibilities.

Project wage determination. A wage determination the Wage and Hour Division issues for a single project when no general determination fits, requested by the agency on SF-308.

RA. Registered apprentice, the code for column 2 of the WH-347, the only entry the form asks for; many contractors add the period, as in RA 3.

Restitution. Payment of back wages found owed to workers, typically shown on a revised certified payroll with the date and method of payment. Corrections.

SAM.gov. The federal System for Award Management website where general wage determinations are published and searched by state, county, and construction type.

SF-1444. Standard Form 1444, Request for Authorization of Additional Classification and Rate, used for conformances.

Site of the work. The primary construction site, secondary sites established for or dedicated to the project where significant portions are built, and adjacent dedicated support facilities. Only hours on the site are covered. Site of the work.

Statement of Compliance. Page 2 of the WH-347 or an equivalent statement, signed weekly under the False Statements Act and the False Claims Act, certifying that the payroll is correct and complete and that workers were paid the full prevailing wage. Statement of Compliance.

Trainee. Formerly a separate reduced-rate category for workers in programs approved by the Employment and Training Administration. The 2023 rule removed the trainee provisions; a worker who is not a registered apprentice is owed the full journeyworker rate.

Type of construction. One of 4 categories a wage determination is issued for: building, residential, heavy, or highway. Coverage.

Wage and Hour Division (WHD). The division of the Department of Labor that issues wage determinations, approves conformances, investigates complaints, and enforces the Davis-Bacon and Related Acts.

Wage determination (WD). The Department of Labor's schedule of prevailing basic hourly rates and fringe benefits by classification for a locality and type of construction, incorporated in the contract. Reading one.

WH-347. The Department of Labor's optional certified payroll form, revised January 2025, with the payroll on page 1 and the Statement of Compliance on page 2. Column by column.

Withholding. The contracting agency's remedy of holding back contract payments from the prime to cover unpaid wages owed by any contractor or subcontractor on the project.

Working foreman. A supervisor who also performs manual work. Covered for the hours spent on manual work when those exceed 20 percent of the workweek.

Workweek. The fixed and regularly recurring 7-day period the employer uses for overtime purposes. Overtime is computed on hours over 40 in this period, not on hours per project.