Certified payroll reports are intended to show the DOL and federal agencies that may review them that workers have received the correct wages and fringe benefits. Additionally, these reports must be numbered and submitted weekly even if no work was done. These two requirements, numbering certified payroll reports and how to handle no-work weeks, are common areas of confusion. All contractors and subcontractors on most federal public works projects must submit certified payroll records to the federal agency that is contracting for or financing the project.

• A well-written manual can mean the difference between processing your payroll efficiently without errors and facing penalties for noncompliance.
• The US House of Representatives approved the bill, though it faced difficulties with the White House and Senate Republicans.
• Certified payroll reporting is when contractors and subcontractors working on federal projects submit payroll reports to confirm they’re paying their workers the prevailing wage.
• Some adopt electronic systems that allow contractors to submit certified payroll reports online; others collect them via other methods, like postal mail, email, or hand delivery.
• When you add employees, lose employees, or offer pay raises, your payroll data changes.
• All labor contractors are required to submit to the Bureau of Labor and Industries a certified true copy of all payroll records for work done as a labor contractor when the contractor pays employees directly.

❌ the wrong number of hours worked;❌ incorrect work determination;❌ wrong prevailing wage rates;❌ not following the regulations of a particular state. Certified Payroll Reports must be submitted by the contractor to the grantee within seven to eleven working days of the end of the payroll period. A Payroll Form and Statement of Compliance is provided as Attachment 8-7. Note that an employee’s full social security number and address are not to be included on these Certified Payroll Reports. Instead, an alternative individual identity number should be used, such as the last four digits of the employee’s social security number or an employee ID. This form does not have to be used, but alternative payroll documentation must include all of the same elements in order to determine compliance with applicable regulations.

Three Fast Facts About Certified Payroll

Certified payroll reports ensure that wages follow regulations set in the Davis-Bacon and Related Acts. Every state and city has different codes on https://www.bookstime.com/articles/what-is-certified-payroll the wage required to legally employ construction contractors. Your certified payroll report serves as proof that you are meeting these criteria.

Under the Davis Bacon Act passed in 1931, during the time if the Great Depression, all workers that perform labor on federally funded projects must be paid a prevailing wage. The law was passed to protect workers from low pay as a result of a company’s low bid to win public work contracts. Certified payroll is a way of tracking a company’s pay practices on Davis Bacon jobs and ensure that local, state, and federal laws and prevailing wage requirements are being met. Failure to comply with Davis Bacon and certified payroll reporting can result in hefty fines for a contractor.

Certified Payroll Reporting Directions and Instructions

After reading this, you’ll know the steps to take to make sure you maintain compliance. Each payroll report must also contain a statement of compliance signed by the contractor, subcontractor, or authorized agent who pays or supervises the payment of covered workers. The prime contractor is responsible for submission of payrolls by all subcontractors. The DOL, under the direction of the Davis-Bacon Act, determines the prevailing wage rates for each geographic region of the country. Overtime payment at one and one-half times the employee’s basic rate of pay for all hours worked over 40 in a workweek may be required for certain covered contracts. It includes a statement of compliance that indicates the payroll forms are correct and complete.

• This will help to avoid excessive control, endless paper routines, and tons of mistakes.
• Those businesses that work on government-funded public works projects in excess of $2,000 need to know what a certified payroll is.
• The effective date for prevailing wage rate(s) is the prime contractor’s bid due date, or if the contract is not awarded within six months of the bid due date, then use the contract award date.
• The U.S. Department of Labor can help you find your wage determination by providing a list of the wage rates and fringe benefit rates for each labor category in a given locality.
• This way, you’re not gathering payroll information at the last second to fill a certified payroll report.

Businesses must use Form WH-347 to submit certified payroll reports for government construction contracts. You’ll need to enter some basic payroll data on the form, including each worker’s name, Social Security number, and tax withholding information. The form’s instructions explain the rest of the reporting requirements, including work classification, workweek, and hourly rate.