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A practical California prevailing wage guide
Prevailing wage work connects project requirements with detailed payroll records. Start by separating registration, payroll preparation and certified payroll submissions, then keep the supporting records together.
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General information, not legal or tax advice.
Start with the project file
Collect the project information, applicable wage rates and classifications before preparing payroll. Keep the source documents with the time records so the person reviewing a payroll report can follow how it was prepared.
Check contractor registration
Contractors and subcontractors bidding or working on California public works jobs over $25,000 for construction or $15,000 for maintenance must hold active DIR Public Works Contractor Registration.
Sources: DIR public works contractor registration; DIR SB 854 public works fact sheet
Plan California and federal reporting
California certified payroll records are furnished electronically through DIR. Records must be furnished at least every 30 days while work is performed and within 30 days after final work.
Review the contract’s federal reporting instructions and determine whether California eCPR also applies. Caltrans projects require weekly certified payroll reports to Labor Compliance; use the project instructions to identify the recipient and format.
Sources: DIR certified payroll reporting; California Legislature: Labor Code 1771.4; Caltrans Labor Compliance Manual, chapter 13
Bring fringe benefits into the annual record
Effective 1/1/2026, AB 889 requires credit for employer benefit payments to be annualized when those payments are higher on public works than on private work, with the Director’s discretionary annualization exception removed. 2026 is the first full year under AB 889, so review annualization records at year-end. Retain contributions and hours by worker rather than relying only on individual project totals.
Sources: AB 889 (2025), chaptered bill text, California Legislature
A repeatable records check
Compare time records, payroll and the proposed certified report before submission. Keep a list of open questions about classifications or project instructions and resolve them with the appropriate project contact.
- Match workers and work periods across the records.
- Separate hours by job and classification.
- Check wages and fringe records against the project information supplied.
- Retain the report and submission confirmation together.
Sources
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