In January 2025, the U.S. Department of Labor (DOL) introduced a revised WH-347 form for contractors and subcontractors working on federal or federally assisted construction projects. This form ensures fair wages under the Davis-Bacon and Related Acts (DBRA). The updates simplify reporting and increase transparency, especially in fringe benefit documentation.
Key Changes in the New WH-347 Form
- Merging of Forms
Previously, contractors had to submit both the WH-347 form and the WH-348 “Statement of Compliance.” Now, the WH-348 is no longer required, as the revised WH-347 includes all necessary information. This change reduces paperwork and streamlines compliance, making it easier to meet federal reporting requirements. - Better Fringe Benefit Reporting
The new form requires more detailed reporting of fringe benefits. Employers must now list specific hourly rates and how these benefits are paid, improving transparency in worker compensation. Proper documentation of fringe benefits ensures compliance with Davis-Bacon requirements and reduces the risk of reporting errors. This level of detail helps regulatory bodies verify that workers are receiving the full benefits they are entitled to under federal laws. - Apprenticeship Documentation
Contractors must clearly identify whether workers are journeyworkers or registered apprentices. If an apprentice is listed, proof of enrollment in an approved apprenticeship program must be provided. This change helps ensure that apprentices receive proper training and compensation, maintaining workforce development standards within the construction industry. - Improved Layout and Instructions
The updated WH-347 form features a clearer design and more straightforward instructions, making it easier to complete and understand. Contractors will spend less time deciphering form requirements and more time focusing on compliance and workforce management.
Understanding Fringe Benefits in Certified Payroll
Fringe benefits are additional compensation provided to employees beyond their base hourly wage. These can include:
- Health insurance
- Retirement contributions
- Paid vacation and sick leave
- Life and disability insurance
- Training programs
When completing the WH-347 certified payroll form, contractors must report both the base hourly wage and the fringe benefits provided to each worker. They can fulfill the required fringe benefit obligation in one of two ways:
- Paying Fringe Benefits as Cash: Contractors can add fringe benefits directly to a worker’s paycheck. While this approach is straightforward, it increases payroll tax obligations since these payments count as taxable income. Although workers receive immediate compensation, this method may not be the most cost-effective for employers.
- Providing Benefits Through a Plan: Instead of paying fringe benefits in cash, contractors can contribute to bona fide benefits plans (e.g., health insurance or retirement funds). This method can be more cost-effective since these contributions are typically not subject to payroll taxes. It also ensures that workers receive long-term benefits, such as healthcare and retirement savings, which can improve employee retention and satisfaction.
Proper tracking and reporting of fringe benefits are essential for compliance with Davis-Bacon wage requirements. Misreporting can lead to fines, contract termination, or debarment from future federal contracts. Contractors who manage fringe benefits effectively can also optimize costs and ensure fair compensation for their workforce. Understanding how to allocate and report fringe benefits correctly is key to maintaining compliance and avoiding potential legal or financial repercussions.
How HCM TradeSeal Helps with Fringe Benefits
HCM TradeSeal simplifies the management of fringe benefits for contractors working on federally funded projects. The platform automates payroll reporting, ensuring accurate calculation and allocation of fringe benefits. Key benefits include:
- Automated Compliance: Ensures proper categorization and reporting of fringe benefits to meet Davis-Bacon requirements, reducing the risk of costly penalties.
- Seamless Integration: Works with existing payroll systems to track and report fringe benefit contributions efficiently. Contractors can maintain their current payroll setup while gaining the advantages of automated compliance tools.
- Error Reduction: Minimizes manual errors in payroll reporting, reducing the risk of penalties. Automated payroll systems help contractors generate accurate and audit-ready reports, preventing disputes with regulatory bodies.
- Fringe Credit Calculations: Allows clients to save on their payroll by ensuring compliance with prevailing wage laws while minimizing unnecessary cash payments and tax overpayments.
By leveraging HCM TradeSeal, contractors can streamline their payroll processes, maintain compliance, and reduce administrative burdens related to fringe benefits reporting. Having an automated system in place allows businesses to focus on project execution rather than getting caught up in complex payroll management challenges.
Want to learn more about typical fringe benefits? Read more
Transitioning to the New Form
The DOL encourages contractors to start using the updated WH-347 as soon as possible. While the old version (valid until September 30, 2026) is still temporarily accepted, switching to the new form ensures compliance with the latest federal requirements. Early adoption of the new WH-347 form can help contractors familiarize themselves with the updated reporting standards before they become mandatory.
For businesses that work with multiple federal contracts, staying ahead of compliance changes is critical. Using the latest WH-347 form can help avoid last-minute adjustments and ensure smooth payroll operations. Contractors should also train payroll staff and ensure they fully understand the new requirements to prevent errors and delays in wage reporting.
Where to Get More Information
The revised WH-347 form and instructions are available on the DOL’s official website. Contractors can also find resources and training materials through industry organizations to help them adapt to the new requirements. Consulting with compliance experts or legal professionals can also be beneficial for businesses that want to ensure they meet all federal wage regulations.
By understanding and using the updated WH-347 form, contractors can ensure they remain compliant with federal regulations while simplifying their payroll reporting process, particularly in relation to fringe benefits. Staying informed about changes to payroll compliance requirements can help contractors maintain good standing with government agencies and continue bidding on valuable federally funded projects.
Need help navigating Fringe Benefits? Contact us.
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About
Founded in 2020, HCM TradeSeal has become a Human Capital Management’s top choice for Construction industry compliance. Recognized as the “Prevailing Wage Compliance Service of the Year 2025” by ManageHR magazine, HCM TradeSeal offers a proven integration with the nations most popular Payroll and ERP providers.
What sets us apart? We specialize in assisting companies with complex union requirements and Davis-Bacon compliance. Our full-service rate management and validation ensure accuracy before payroll is processed, minimizing compliance risks. By automating wage calculations and streamlining certified payroll and union reporting, we help payroll teams save valuable time each week. With HCM TradeSeal, payroll and reporting become effortless, giving you peace of mind.