10 Common WH-347 Mistakes That Lead to Fines (And How to Avoid Them)

Every week, thousands of contractors submit WH-347 certified payroll reports to comply with the Davis-Bacon Act. And every week, a significant number of those reports contain errors that can trigger DOL investigations, back-pay orders, or worse.

The Department of Labor's Wage and Hour Division (WHD) has increased enforcement in recent years. They are not just looking for intentional fraud — honest mistakes can lead to the same penalties. An auditor does not care whether you underpaid a worker on purpose or by accident. The result is the same: you owe back wages, potentially face civil penalties, and in severe cases risk debarment from federal contracts.

Here are the 10 most common WH-347 mistakes we see — and exactly how to avoid each one.

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Mistake #1: Wrong Worker Classification for the Work Performed

What Goes Wrong

A worker is classified as a "laborer" but is actually performing electrician, plumber, or carpenter work. Or a worker performs work under two different classifications during the same week but is only reported under one.

Each worker classification has a different prevailing wage rate. Using the wrong classification almost always means underpaying the worker, because skilled trade rates are higher than general labor rates.

The Consequence

Back-pay liability for the wage difference, potentially across every pay period the worker was misclassified. On a 12-month project, misclassifying one electrician as a laborer could result in $15,000-$30,000+ in back wages owed.

How to Prevent It

• Review the wage determination's classification descriptions before assigning classifications
• Match classifications to actual work performed, not job titles
• When workers perform multiple types of work, track hours separately for each classification
• Train foremen and supervisors to understand classification requirements

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Mistake #2: Not Paying Overtime at 1.5x the Prevailing Rate

What Goes Wrong

Contractors pay overtime at 1.5x the worker's regular rate instead of 1.5x the prevailing base rate. If a worker's regular pay is $35/hour but the prevailing rate is $42.50/hour, overtime must be calculated on the $42.50 rate, not the $35 rate.

Another common error: not paying overtime at all when workers exceed 40 hours in a week, especially when workers split time between prevailing wage and non-prevailing wage projects.

The Consequence

Underpayment of overtime wages triggers back-pay liability plus potential liquidated damages (double the back wages owed). The Contract Work Hours and Safety Standards Act (CWHSSA) adds an additional $10 penalty per worker per day for each overtime violation.

How to Prevent It

• Always calculate overtime on the prevailing wage base rate, not the worker's standard rate
• Track all hours across all projects to ensure overtime is properly triggered at 40 hours
• Remember: fringe benefits on overtime hours are paid at the straight-time fringe rate, not 1.5x
• Use software that automatically calculates overtime correctly based on prevailing wage rates

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Mistake #3: Missing or Incorrect Fringe Benefit Payments

What Goes Wrong

Contractors either forget to pay the fringe benefit portion entirely, underpay it, or count non-qualifying benefits toward their fringe obligation. This is one of the most common violations because fringe calculations are complex and often misunderstood.

The Consequence

Back-pay liability for the full fringe shortfall. If the fringe rate is $18.75/hour and you paid nothing, that is $18.75 x every hour worked by every affected worker. On a crew of 10 workers over 6 months, this can easily exceed $150,000.

How to Prevent It

• Treat the fringe obligation as seriously as the base wage rate
• Document your benefit plans and calculate the hourly value of each benefit
• Pay any shortfall as cash in lieu on the worker's paycheck
• Review fringe calculations when wage determinations are updated

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Mistake #4: Late Submission Past the 7-Day Deadline

What Goes Wrong

The WH-347 must be submitted within 7 days after the end of each weekly pay period. Contractors miss this deadline because of disorganized payroll processes, staff vacations, or simply not knowing the requirement.

The Consequence

Late submissions draw immediate attention from auditors. Chronic late filing can lead to contract-level penalties, negative performance evaluations, and increased scrutiny of all your reports. Contracting agencies may also withhold progress payments until certified payroll is current.

How to Prevent It

• Set up calendar reminders for every Tuesday (7 days after a Saturday-ending pay period)
• Build certified payroll into your weekly workflow, not as an afterthought
• Designate a specific person responsible for timely submission
• Use software with deadline tracking and automated reminders

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Mistake #5: Not Including All Workers (Including Owner-Operators)

What Goes Wrong

Contractors leave workers off the WH-347 — sometimes intentionally (to hide underpayment) and sometimes unintentionally (forgetting temporary workers, owner-operators, or workers who only worked a few hours that week).

A common misconception is that business owners who perform manual labor on the project do not need to be listed. They do. If an owner-operator picks up a hammer on a Davis-Bacon job site, they must be on the certified payroll.

The Consequence

Omitting workers is considered falsification of the certified payroll report. This is a criminal offense under federal law (18 U.S.C. 1001), punishable by fines and up to 5 years in prison. Even if the omission was accidental, it creates a presumption of willful violation that is difficult to rebut.

How to Prevent It

• Maintain a complete list of every person who sets foot on the job site
• Include owner-operators, temporary workers, and anyone performing covered work
• Cross-reference daily sign-in sheets with certified payroll submissions
• When no work is performed during a week, submit a "no work" report rather than skipping the week

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Mistake #6: Incorrect SSN or Identifying Information

What Goes Wrong

Social Security numbers are transposed, names are misspelled, or worker identification is incomplete. While this may seem minor, incorrect identifying information makes it impossible for auditors to verify that the correct workers are being paid the correct rates.

The Consequence

Reports with incorrect or incomplete identification are typically returned for correction, delaying the submission timeline. Repeated errors may trigger a broader audit of your records. In some cases, the DOL may suspect that incorrect identifiers are being used to mask the use of unauthorized workers.

How to Prevent It

• Verify SSNs and worker information at the time of hire
• Use a consistent employee database to auto-populate report fields
• Double-check report data before submission
• Note: the WH-347 allows use of the last four digits of the SSN after the first submission where the full SSN is provided

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Mistake #7: Math Errors (Gross Pay Does Not Match Hours x Rate)

What Goes Wrong

The gross pay amount on the report does not equal hours worked multiplied by the hourly rate. This seems like it should be impossible with any basic tool, but it happens constantly with manual preparation — especially when workers have overtime hours, multiple classifications, or mid-week rate changes.

The Consequence

Math errors are red flags for auditors. They suggest either carelessness or intentional manipulation. Even if the errors are innocent, they will trigger a deeper review of your records and may result in the auditor requesting full payroll records, bank statements, and canceled checks.

How to Prevent It

• Use software that calculates gross pay automatically from hours and rates
• If preparing manually, triple-check every calculation before signing
• Pay special attention to overtime calculations (regular hours x rate + overtime hours x 1.5 rate)
• Verify that gross pay minus deductions equals net pay for each worker

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Mistake #8: Not Reporting All Deductions

What Goes Wrong

All deductions from a worker's pay must be listed on the WH-347. Contractors sometimes omit deductions like union dues, garnishments, tool purchases, or advances. Any deduction that is not listed on the report is a compliance issue.

Additionally, unauthorized deductions — deductions that bring a worker's effective pay below the prevailing wage rate — are a separate violation.

The Consequence

Unreported deductions suggest that workers may be receiving less than the reported net pay. Unauthorized deductions that reduce pay below prevailing wage constitute a wage violation with full back-pay liability. Certain deductions (like charges for tools or equipment) are simply not permitted on prevailing wage projects.

How to Prevent It

• List every deduction on the WH-347, including taxes, insurance premiums, union dues, and garnishments
• Verify that no deduction brings the effective hourly rate below the prevailing wage
• Do not deduct for tools, equipment, safety gear, or other items required for the job
• Get written authorization from workers for all voluntary deductions

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Mistake #9: Unsigned Statement of Compliance

What Goes Wrong

The second page of the WH-347 is the Statement of Compliance, which must be signed by an authorized officer of the company. Contractors submit page 1 without page 2, forget to sign it, or have it signed by someone who is not authorized.

The Consequence

An unsigned or missing Statement of Compliance means the certified payroll report is not legally certified. The report is incomplete and will be returned. Repeated submission of unsigned reports signals a lack of compliance awareness and may escalate scrutiny.

Remember: the Statement of Compliance is a legal declaration. The person signing it is certifying under penalty of perjury that the information is correct and that workers have been paid the required wages. This is not a formality — it carries legal weight.

How to Prevent It

• Establish a clear process for who signs the Statement of Compliance
• Never submit page 1 without page 2
• Use electronic signature tools to streamline the signing process
• Review the fringe benefit checkboxes (4a, 4b, 4c) to ensure they accurately reflect your payment method

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Mistake #10: Not Keeping Records for 3 Years

What Goes Wrong

The Davis-Bacon Act requires contractors to maintain payroll records for 3 years after completion of the project. Many contractors discard records after the project ends, switch software systems without migrating data, or simply do not have an organized record-keeping system.

The Consequence

If the DOL initiates an investigation and you cannot produce records, you lose the ability to defend yourself. The DOL may use worker testimony, third-party records, or estimates to reconstruct payroll — and those reconstructions rarely favor the contractor. Failure to maintain records is itself a violation of 29 CFR 5.5(a)(3).

How to Prevent It

• Keep all certified payroll reports, time records, payroll registers, and benefit documentation for at least 3 years after project completion
• Use cloud-based software that automatically stores and archives your records
• Include subcontractor records in your retention policy
• Create a record destruction schedule that accounts for the 3-year requirement (measured from project completion, not the pay period)

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How to Protect Your Company

The pattern across all 10 mistakes is clear: most violations are preventable with the right processes and tools. Here is a summary of the most effective protections:

• Use purpose-built software: Generic spreadsheets and manual processes are where most errors originate
• Automate calculations: Let software handle math, overtime, and fringe calculations to eliminate human error
• Build a weekly routine: Certified payroll should be part of your standard weekly workflow, not an afterthought
• Train your team: Everyone involved in time tracking and payroll should understand Davis-Bacon basics
• Review before signing: The person signing the Statement of Compliance should actually review the report
• Keep records: Store everything for at least 3 years after project completion

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Let Lydia Catch Your Mistakes

Lydia, CertifiedPayrollPro's AI compliance assistant, is built to catch every one of these 10 mistakes before you submit your report. She verifies worker classifications, checks overtime calculations, validates fringe benefit payments, flags math errors, and ensures your Statement of Compliance is complete.

Think of Lydia as a compliance auditor who reviews every report before it goes out the door — except she works for you, not the DOL.

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This article is for informational purposes only and does not constitute legal advice. Always consult with a compliance professional for project-specific questions. Last updated: March 2026.