Skip to main content

What Compliance Auditors Review Under the IRA

Learn what IRA auditors review: payroll, apprentice agreements, wage schedules, ratios, and Davis-Bacon certificates.

Updated over 2 months ago

When your project falls under the Inflation Reduction Act (IRA), auditors will review both prevailing wage compliance and apprenticeship compliance. Knowing what documents they expect helps you stay audit-ready and avoid penalties.


What Auditors Look For

1. Certified Payroll Records

  • WH-347 payroll reports showing all employees, wages, and classifications

  • WH-357 Apprentice & Trainee Worksheet confirming apprentice registration and wage progression

2. Apprenticeship Documentation

  • Signed Apprenticeship Agreements (Form 671) for every registered apprentice

  • Appendix A wage schedules and training outlines

  • Davis-Bacon Certificates (renewed every 90 days)

3. Apprentice-to-Journeyman Ratios

  • Verified through certified payroll

  • Must meet 1:1 supervision requirement (unless otherwise stated in program standards)

  • Ratio compliance is checked daily, not just at project closeout

4. Apprentice Labor Hours

  • At least 15% of total project labor hours must be performed by registered apprentices (10% for projects started before 2024)

  • Auditors compare payroll hours to apprenticeship records to confirm compliance

5. Participation Requirement

  • Contractors with 4+ employees must employ at least one apprentice

  • Verified by reviewing crew size on payroll reports and apprentice enrollment

6. Recordkeeping

  • All compliance documentation must be retained for 7 years

  • Includes payroll, apprenticeship agreements, wage determinations, and proof of ratio compliance


Apprentix vs. Auditors

  • Apprentix ensures apprentices are registered, hours are logged, agreements are stored, and Davis-Bacon certificates are tracked.

  • Auditors verify payroll accuracy, ratios, wage compliance, and total apprentice participation.

Together, these systems ensure you’re ready when the DOL or IRS reviews your project.


Tip: Use Apprentix for apprenticeship-side compliance and your payroll provider for certified payroll. Keep both aligned to pass audits smoothly.

Did this answer your question?