Create prevailing wages and certified payroll reports in QuickBooks Desktop Payroll

Publicly funded federal projects typically require employers to pay workers prevailing wages (also known as Davis-Bacon wages). These wages are then reported on certified payroll reports. In QuickBooks Desktop Payroll, you can set up prevailing wages and generate certified payroll reports.

Learn about prevailing wages and certified payroll reports

The Davis-Bacon Act of 1931 is a United States federal law that requires employers to pay prevailing wages on federal public works projects over $2,000. 

Certified payroll reports must include the following:

• Workers on the project
• Labor classifications
• Hours worked
• Wage rates
• Benefits
• Overtime compensation
• Total wages paid and other info related to payroll deductions

The certification must show that each worker has been paid no less than the prevailing wage and benefit rate for the work performed.

In 2025, the US Department of Labor released an updated version of the WH347. This update brought new fields, column headings, and calculations to the report, changing how it runs and looks in QuickBooks.

Set up prevailing wages and create certified payroll reports for your employees

Step 1: Set up prevailing wages

You can create hourly payroll items with names like Carpentry, Electrical, or General Labor for each work classification code. These items will show on your certified payroll reports. 

Step 2: Set up job costing

You’ll use job costing to keep track of your employees’ hours for each prevailing wage item. See Set up and track payroll expenses by job in QuickBooks Desktop Payroll. 

Step 3: Set up time tracking

When you use time tracking, the info will automatically show upon your certified payroll reports. It also helps you save time when running payroll. 

• To set up time tracking, see Set up time tracking 
• To use QuickBooks Time, see Set up and use QuickBooks Desktop for Windows and QuickBooks Time integration 
• To use QuickBooks timesheets, see Create and print timesheets

With time tracking, you’ll add your prevailing wage items and tie those to the jobs you set up.  

You can create your payroll and certified payroll reports without time tracking. You’ll enter all the info on your paychecks as you create payroll, and in the certified payroll report module manually. 

Step 4: Set up your employees

Make sure your employees have the following added:

• Weekly pay frequency
• Use time tracking data to create paychecks if you’re using time tracking
• Prevailing wage items and rates 
• Fringe benefit items
• Cash payment instead of fringe benefits

Note: For cash payments, you’ll have to set up a new Addition payroll item in QuickBooks.

Step 5: Run your payroll using time tracking and job costing

You’ll need to run your payroll weekly, preferably with the job costing and time tracking you set up.  

Remember to include any fringe benefit or payment in lieu of fringe benefits payroll items on the paychecks. 

If you don’t use time tracking, add the prevailing wage items you set up in Step 1 and the corresponding jobs you set up in Step 2 to each of your employees’ paychecks.

Step 6: Create a certified payroll report

Now you’re ready to create your certified payroll report. You’ll need a full version of Microsoft Excel. You can also use this report to fill out the optional Certified Payroll Form WH-347. 

1. Sign in to QuickBooks as the Primary Administrator. 
2. Make sure you’re in single-user mode. 
3. Go to Reports, then select Employees & Payroll.
4. Select More Payroll Reports in Excel, then Certified Payroll Report. 
5. Enable Macros if prompted.
6. Select Continue. Enter the Pay Date. 
7. Enter your employer info, then select Next. 
8. Enter your project info, then select Next.
   • If you select YES on the apprentice or journeyworker ▼ dropdown, an additional screen will open and ask you to identify workers and experience levels.
   • If you select NO, it'll go directly to the fringe benefits screen.
9. Enter your Fringe Benefit details and select Next.
   • If you select YES on the payment in lieu of fringe benefits ▼ dropdown, an additional screen will open and ask you to select the payroll item (must be an addition type payroll item) used for payment in lieu of fringe benefits. 
   • If you select NO, it'll take you to the signer’s information window.
10. Enter the Signer’s information. 
11. Select Create Report.

Note: To understand the full breakdown of calculations and fields, select the Explanation of Calculations tab in the certified payroll summary report.