Certified Payroll

What does Certified Payroll Mean?

Definition of Certified Payroll in Construction
Payroll that is based upon the Davis Bacon Act. The DBA is a policy that has been in existence for many years that requires a minimum wage, dependent upon the trade, be paid for each worker on the project.

In addition, dependent upon the project, the DBA may require a minimum percentage of workers to be of minority representation both as a WMBA or MBA.

The certified payroll is a process where specific reporting is required on a weekly basis, that identifies the number of hours worked by each individual worker, the ethnic background of each worker, the minority representation, the benefits provided, as well as the formal and legally binding certification by the contractor, that the reports where authentic and accurate.

In many cases, municipalities have separate departments set up to ensure that the certified payrolls are proper, and payments are not issued until such payrolls are approved. The majority of Federal, State and Local projects, if funded by public dollars, will require certified payrolls.