Construction Payroll Checklist
Construction payroll comes with unique compliance challenges. From prevailing wage laws to certified payroll reports, mistakes can result in penalties or loss of government contracts. This Construction Payroll Checklist ensures your payroll is accurate, compliant, and audit-ready. Download the printable PDF version for easy reference.
Step 1 – Confirm Worker Classification
- Verify employee vs. contractor status.
- Ensure correct job classification for prevailing wage projects.
- Maintain signed contracts and agreements for all workers.
Step 2 – Apply Prevailing Wage Rules
- Review federal Davis-Bacon Act requirements for government projects.
- Follow state-specific prevailing wage laws.
- Document wage determinations by job role and location.
Step 3 – Track Time Accurately
- Maintain daily timecards for each worker.
- Track hours by job site and project code.
- Record overtime and double-time separately.
Step 4 – Prepare Certified Payroll Reports
- Complete Form WH-347 (federal certified payroll report).
- Submit certified payroll weekly for government contracts.
- Retain signed statements of compliance for each report.
Step 5 – Manage Union & Benefit Deductions
- Deduct and remit union dues where applicable.
- Track contributions to pension, health, and training funds.
- Maintain records of all deductions and employer contributions.
Step 6 – File Taxes & Retain Records
- File federal and state payroll taxes (941, 940, SUI/SUTA).
- Keep payroll records for at least 4 years.
- Store certified payroll reports for 3 years minimum.
Download the Construction Payroll Checklist PDF
Get the printable version here: Download Construction Payroll Checklist PDF
FAQs
What is certified payroll?
Certified payroll is a weekly payroll report (Form WH-347) required for federal and many state-funded construction projects.
What happens if I don’t pay prevailing wage?
Contractors may face back-pay requirements, fines, or disqualification from future government contracts.
Do small private construction jobs require certified payroll?
No, certified payroll applies only to government-funded projects. Private projects follow standard payroll rules.
Stay compliant on every project.
RemoteBooksOnline can handle construction payroll and bookkeeping together, including certified payroll reporting. Get a free quote today.
Related Checklists
If you’re handling payroll for multiple states, you may also need our Payroll Tax Compliance Checklist and Payroll Recordkeeping Checklist
