PREVAILING WAGE BASICS
Prevailing wage, Davis-Bacon and certified payroll: how the three fit together
Prevailing wage describes the required wage and fringe benefit rates for covered work. Davis-Bacon is a federal law governing certain construction contracts; certified payroll is the weekly record of what workers actually received.
Start with the contract and wage determination
A wage determination lists basic hourly rates and fringe benefits by classification. Confirm the determination and modification incorporated into the contract, and record the requirements that apply. A project location or funding label alone is not a determination of applicability.
From rates to the weekly record
For covered federal work, the weekly payroll records hours, classifications, wages, fringes and deductions. The signed Statement of Compliance accompanies the payroll. WH-347 is an optional federal format for reporting the required information, not a payroll processing system.
Where PaidReady fits
I built PaidReady to connect payroll exports with the selected wage determination and review findings before you sign. Keep your payroll provider for wages and taxes. Federal WH-347 is supported today; California DIR eCPR XML export is in beta and other state portal exports are planned.
Frequently asked questions
Is prevailing wage the same as Davis-Bacon?
No. Prevailing wage is the rate requirement; Davis-Bacon is one federal statutory framework. State and local requirements can be different. Confirm the contract requirements with the recipient.
Is certified payroll the same as running payroll?
No. Running payroll pays workers and handles payroll taxes. Certified payroll reports the work and pay for a covered project and includes a signed certification. PaidReady does not replace your payroll provider.
Does signing WH-347 submit it to an agency?
No. The signer confirms the report, then follows the recipient’s delivery instructions. PaidReady does not automatically submit reports or guarantee acceptance.
Try a payroll week in PaidReady
Practice with sample data, or prepare your first signed WH-347 free on one project. No card required for the First report plan.
Try your first report freeIn PaidReady
PaidReady records the facts these rules depend on, determination versions by date, classifications, hours by day, fringe and apprentice facts, and reviews them with explainable checks before you prepare and sign the WH-347. It does not decide which laws apply to your project and does not replace your payroll provider.
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This guide is general information current as of October 29, 2026. It is not legal advice. Requirements vary by contract, agency and state; confirm them with the contracting agency or qualified counsel.