The Inflation Reduction Act (IRA) allows contractors a 30-day correction window to fix prevailing wage and apprenticeship compliance issues. Here’s what you need to know about making corrections and avoiding long-term penalties.
Correction Window ⏳
If an auditor identifies a violation, you usually have 30 days to correct it. During this period, you must:
Investigate the issue (wage, ratio, or apprenticeship shortfall).
Submit corrected documentation to show compliance.
Pay restitution where required.
Failing to correct within the window can result in higher penalties and loss of tax credits.
Prevailing Wage Corrections 💵
If workers were underpaid:
Pay back wages equal to the difference between actual wages paid and the required prevailing wage.
Include interest from the date wages were owed.
Provide proof of payment and corrected payroll records.
Apprenticeship Corrections 👷♂️
If apprenticeship requirements were missed:
Reclassify disqualified apprentice hours as journeyman hours.
Pay apprentices at the full journeyman rate for those hours.
Document why the hours did not qualify (e.g., ratio violation, unregistered worker).
Restitution Requirements ⚖️
Restitution isn’t just about paying money—it’s also about correcting records. You must:
Update certified payroll to reflect corrected wages or classifications.
Provide signed proof of correction to the reviewing agency.
Keep updated documentation in your compliance files for at least 7 years.
Best Practices for Staying Ahead
Run internal payroll audits regularly to catch errors before the DOL or IRS does.
Use Apprentix to confirm apprentices are registered and active.
Store Davis-Bacon certificates, agreements, and wage schedules in one place.
Document ratio compliance daily with certified payroll.
✅ Tip: Corrections protect your eligibility for enhanced IRA tax credits, but prevention is always easier than fixing errors later.