What a construction pay stub shows
Crews move between jobs, sites and pay rates in the same week, and the stub should let a worker check each part. The sample on this page is a carpenter's weekly stub with two job rates, overtime and per diem.
| Line | What it is | Taxed as wages? |
|---|---|---|
| Hours at each job rate | Hours × the rate for that work, such as carpentry or general labor | Yes |
| Overtime premium | Half the weighted average rate for each hour over 40 in the week | Yes |
| Per diem | A daily allowance for travel away from home, under an accountable plan | No, up to the amount substantiated |
| Per diem over the substantiated amount | Any excess that wasn't accounted for | Yes |
| Taxes | Federal income tax, social security and Medicare, plus state lines | Taken off |
| Other deductions | Union dues, tool or uniform deductions the worker agreed to, benefits | Depends on the deduction |
Two or more pay rates in one week
When someone does two kinds of work at different rates in the same workweek, their regular rate for overtime is the weighted average of those rates: total straight-time pay divided by total hours. That is the federal rule at 29 CFR 778.115. Overtime then adds half that rate for every hour over 40.
| Line | Hours | Rate | Amount |
|---|---|---|---|
| Carpentry | 32.00 | $30.00 | $960.00 |
| General labor | 13.00 | $22.00 | $286.00 |
| Straight time | 45.00 | $27.6889 average | $1,246.00 |
| Overtime premium | 5.00 | $13.8444 (half the average) | $69.22 |
| Total wages | $1,315.22 |
There is one alternative. If the worker agrees in advance, 29 CFR 778.419 lets you pay overtime hours at 1.5 times the rate for the work actually done in those hours. If the 5 overtime hours above were general labor, that is 40 straight-time hours ($960.00 carpentry plus $176.00 labor) and 5 hours at $33.00, a total of $1,301.00. The agreement has to come before the work, and the rates have to be the ones you really pay for that work.
Overtime calculator Shift differential and the blended overtime rate
Per diem on a construction pay stub
Per diem paid under an accountable plan isn't wages: no income tax, social security, Medicare or FUTA. IRS Publication 15 sets three rules for the plan. The expense has to be a business expense of working for you, the worker has to account for it within a reasonable time, and they have to return anything over what they accounted for.
- A reasonable time is generally an advance within 30 days of the expense, accounting within 60 days and any excess returned within 120 days.
- If you pay per diem at or under the federal rates, the amount counts as accounted for. The worker still has to back up the rest, such as the business purpose of the trip.
- For travel from October 1, 2026 to September 30, 2027, the GSA's standard rate for places without their own rate is $113 a night for lodging and $68 a day for meals and incidental expenses. Many cities have higher rates.
- Any per diem above the amount accounted for is wages, taxed for income tax, social security, Medicare and FUTA. The Form W-2 then shows the accounted-for amount in box 12 with code L.
Per diem only works for travel away from the worker's tax home. Publication 463 treats a job at one site that is realistically expected to last a year or less as temporary. One expected to last more than a year is indefinite, and living allowances paid for it are income. Money for the daily drive to a local site, or for lunch, is also outside the rule.
For overtime, 29 CFR 778.217 keeps a reasonable travel reimbursement out of the regular rate, and treats one at or under the federal per diem rates as reasonable. Reimbursing everyday personal costs, such as the commute, does go into the regular rate.
Sources: IRS Publication 15 (2026) section 5, IRS Publication 463 (2025), GSA Per Diem Bulletin FTR 27-01 and 29 CFR 778.217, read on October 8, 2026. This page is general information, not tax or legal advice.
Certified payroll and Form WH-347
Certified payroll is a weekly report for federal and federally assisted construction work, not a pay stub. The Davis-Bacon and Related Acts cover contracts over $2,000 for building or repairing public buildings and public works. Laborers and mechanics on them must get the locally prevailing wages and fringe benefits, and on prime contracts over $100,000, time and a half for hours over 40 in a week.
- Contractors and subcontractors send certified payrolls every week in which covered work is done, with a signed Statement of Compliance.
- Each one shows, per worker, the work classification, hourly rates and fringe benefits, daily and weekly hours in total and on each covered contract, deductions and actual wages paid.
- The weekly copy carries an identifying number such as the last four digits of the Social Security number, not the full number or the home address.
- Optional Form WH-347 from the Department of Labor can be used, or any format with the same information. Records are kept for at least 3 years after all work on the prime contract is finished.
PayDocs doesn't make certified payrolls or Form WH-347. Use the Department of Labor's form or your payroll system for the weekly report. Each worker's stub should match the hours, rates and deductions it shows, which is easier when every job rate has its own line.
How to make a construction pay stub
- From your payroll, get the week's hours at each job rate, the overtime premium, per diem paid, and each tax and deduction withheld.
- In the pay stub generator, enter the main job's hours and rate, then use "Add earnings line" for each other rate, the overtime premium and per diem. Label the per diem line as not taxed.
- Add the tax and deduction lines, and check that net pay matches the check or deposit.
PayDocs works out federal income tax, Social Security, Medicare and supported state taxes for 2026 pay dates (see what we calculate). PayDocs doesn't work out a weighted overtime rate, prevailing wages or per diem limits; it turns your payroll figures into a clear stub.
A PayDocs pay stub records a real payroll payment. It is not proof of income, and nobody should present one as such.
Questions
How is overtime calculated with two pay rates?
Add the straight-time pay at every rate, divide by all hours worked to get the weighted average, then pay half that average again for each hour over 40. With an agreement made in advance, you can instead pay 1.5 times the rate for the work done in the overtime hours.
Is per diem taxable for construction workers?
Not when it is paid under an accountable plan for travel away from the worker's tax home and doesn't exceed the amount accounted for. Per diem at or under the federal rates counts as accounted for. Any excess, or per diem for local work, is taxable wages.
Does per diem go on a pay stub?
It usually does, on its own line marked as not taxed, so the worker can see it was paid and that it isn't in taxable wages. Any part that is taxable goes in wages like other pay.
Is a pay stub the same as certified payroll?
No. Certified payroll is a weekly report a contractor on federally funded construction sends with a signed Statement of Compliance, on Optional Form WH-347 or another format. A pay stub is the worker's own record of one payday.
Who has to file certified payroll?
Contractors and subcontractors whose laborers and mechanics work on construction contracts covered by the Davis-Bacon and Related Acts, which apply to federal and federally assisted contracts over $2,000. They send it every week in which covered work is done.
What is the federal per diem rate for 2027?
For travel from October 1, 2026 to September 30, 2027, the GSA's standard rate is $113 a night for lodging and $68 a day for meals and incidental expenses. Many cities have their own, higher rates on the GSA site.
Sources
- eCFR — 29 CFR 778.115, Employees working at two or more rates
- eCFR — 29 CFR 778.217, Reimbursement for expenses (regular rate)
- IRS — Publication 15 (Circular E), Employer’s Tax Guide
- IRS — Publication 463 (2025), Travel, Gift, and Car Expenses: temporary and indefinite assignments
- GSA — Per Diem Bulletin FTR 27-01: FY 2027 CONUS per diem rates
- U.S. Department of Labor — Government contracts: construction (Davis-Bacon and Related Acts)
- eCFR — 29 CFR 5.5, Contract provisions and related matters (Davis-Bacon payrolls and basic records)
- U.S. Department of Labor — Instructions for completing the Davis-Bacon weekly certified payroll form, WH-347
Official sources checked October 8, 2026. This guide explains how pay documents work; it is not tax or legal advice.
