If you are a subcontractor working on federal or federally funded projects in Delta County, Mesa County, or anywhere on the Western Slope, you’ve probably heard of Davis-Bacon wage reporting. These rules make sure workers are paid fairly according to local prevailing wages. While the rules around certified payroll can seem complicated, getting them right is critical to staying compliant and keeping your payments on schedule.
Here’s a clear, practical guide to help subcontractors handle Davis-Bacon reporting efficiently.
What is Davis-Bacon Wage Reporting?
The Davis-Bacon Act requires that workers on federally funded construction projects are paid the prevailing wage for their job classification. Subcontractors are responsible for submitting weekly certified payroll reports (using WH-347 or equivalent forms) that show:
- Hours worked by each employee
- Job classification
- Hourly base wages and fringe benefits
- Overtime and deductions
Submitting accurate reports every week is essential. Even small mistakes can delay payments or trigger compliance issues with your general contractor or the government.
How to Find the Correct Prevailing Wage Rates
The first step is knowing what the correct rates are for your project. You can:
- Check the contract – often the wage determination number is listed there.
- Use SAM.gov – search by state, county, construction type, and active status. Make sure you use the version that was in effect at the time the contract was signed.
- Record the rates – note both the base hourly rate and fringe rate for each classification.
For official guidance, the Department of Labor’s instructions for WH-347 forms are here: DOL WH-347 Instructions. You can also find helpful walkthrough videos on YouTube like this one: Davis-Bacon WH-347 Tutorial.
Step-by-Step Davis-Bacon Workflow
Here’s a practical workflow for subcontractors, broken down week by week:
1. Track Time
- Pull hours from QuickBooks Online Time (or your time tracking system).
- Split hours by classification, not just by employee. Each classification must be reported separately.
- If you use QuickBooks Time, create categories for each Davis-Bacon classification so the team can select the correct one for each block of hours worked.
2. Calculate Pay
- Base Pay: Regular hours × base rate + OT hours × base × 1.5
- Fringe Pay: All hours × fringe rate
- Decide if fringe is paid as cash or into a plan:
- Cash fringe: Include in gross pay
- Plan fringe: Exclude from net pay
Example: 45 hours worked, base $28.50/hr, fringe $10.25/hr
- Base: 40 × $28.50 = $1,140
- OT: 5 × ($28.50 × 1.5) = $213.75
- Fringe: 45 × $10.25 = $461.25
- Total gross pay = $1,815
3. Fill WH-347 Page 1
- Include project info, payroll number, and week ending date
- Important: Each employee needs a separate line for every classification they worked during the week. If a worker worked as a laborer and a carpenter on the same project, create two lines for that employee: one for laborer hours and one for carpenter hours.
- Record daily hours, rates, fringe, gross project pay, total gross, deductions, and net pay for each line
- Example: John Smith: 20 hours as Laborer, 10 hours as Carpenter
- Line 1: John Smith – Laborer – 20 hours × Laborer rate
- Line 2: John Smith – Carpenter – 10 hours × Carpenter rate
4. Fill WH-347 Page 2
- Certify compliance with signature and date
- Complete apprenticeship info if applicable
- Include fringe plan info if claiming credits
5. Submit Weekly
- Submit by Friday for the prior week
- Save a copy for your compliance files (retain for at least three years)
Common Mistakes to Avoid
- Misclassifying workers
- Forgetting fringe or miscalculating
- Handling multiple classifications incorrectly
- Missing overtime premium
- Using an outdated WH-347 form
Following the workflow above will help prevent these issues.
Fringe Benefits Explained
Fringe benefits are non-wage compensation that must be provided in addition to base pay. Approved fringe benefits can include:
- Health insurance premiums
- Life insurance
- Disability insurance
- Retirement contributions (401k, pension)
- Apprenticeship or training programs
- Paid vacation or holiday pay
Do not include payroll taxes, workers’ compensation premiums, or general overhead.
There are two ways to handle fringe:
- Pay to an approved plan – Base wages are taxable, fringe goes to the plan (non-taxable to the employee)
- Pay as cash in paycheck – Base + fringe is fully taxable, common for small contractors without a plan
How This Connects to Pay Applications
Davis-Bacon reporting often intersects with G702/G703 pay applications. Your pay applications may require proof that certified payroll has been submitted correctly, so keeping both processes organized together can save time and prevent delays.
How We Help Local Subcontractors
At Western Slope Bookkeeping, we help subcontractors across Delta County, Mesa County, and the Western Slope stay compliant with Davis-Bacon wage reporting. We make sure your certified payroll is accurate, organized, and submitted on time.
On top of that, we also handle pay applications and bookkeeping so you can focus on running your projects while staying compliant.
If Davis-Bacon reporting or certified payroll is slowing you down, contact us today and we will make sure your reports are done right the first time.
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