certified payroll reporting requirements

Just like on federal projects covered by Davis-Bacon, contractors generally submit CPRs to the prime contractor, and the prime then submits to the awarding body overseeing the project. The prime contractor and/or awarding body will then have their own requirements on how they collect CPRs. Some will require contractors to submit certified payroll reports through an electronic system like LCPtracker Pro; other primes will collect them via more traditional methods, like postal mail, email, or hand delivery. Davis-Bacon and Related Acts are federal laws, but some states have additional requirements that effect construction companies and service providers that perform government funded work. For instance, any project involving a California awarding body must comply with prevailing wage rates specific to California.

You will need to submit certified payroll reports to the Labor Commissioner using the DIR’s (Department of Industrial Relations) online system. You can either upload the completed WH-347 form or you can fill it out digitally and submit it through their system. For these states, contractors need to clarify any additional regulations required by a state before submitting their certified payroll reports.

What is the most efficient way to help ensure California prevailing wage and certified payroll requirements are being met?

The law applies to contractors and subcontractors hired to complete construction, alteration or repair of public buildings or public works. Prevailing Wage Determination
A wage determination issued for a project specifies the wage and fringe benefit rates for each classification of worker, determined to prevailing in that locality for that type of construction. Wage Determinations are issued for each locality in the State (23 counties and Baltimore City) and are in effect for one year from the date on which they become final. The law requires employees on a public works contract to be paid overtime for hours in excess of 10 hours in a single day, and for work performed on a Sunday or a legal holiday.

If you’re working on a government-funded public works project, then you’re required to pay your employees the predetermined prevailing wage. When you submit a certified payroll report, it’s your proof that you’re abiding by those requirements. Any contractor who is making payment to approved plans, funds, or programs in amounts less than the wage determination requires is obliged to pay the deficiency directly to the covered worker as cash in lieu of fringe benefits. Enter in the Exception column the craft, and enter in the Explanation column the hourly amount paid each worker as cash in lieu of fringe benefits and the hourly amount paid to plans, funds, or programs as fringe benefits. Enter the rate paid and amount of cash paid in lieu of fringe benefits per hour in column 6 on the payroll.

Certified Payroll Form

Moreover, with time-tracking apps, you can quickly generate reports and check working statistics on each employee. You will need to fill in each employee’s corresponding work classification code. The job classification code tells the government how much you are supposed to pay your employee or contractor.

certified payroll reporting requirements

The Commissioner encourages all interested groups to voluntarily electronically submit data detailing wage rates paid to workers on various types of construction in all localities in Maryland. Finally, anyone who has performed certified payroll for any amount of time knows how painful a restitution process can be. The entire certified payroll reporting procedure is filled with duplicated data entry and prone to simple unintentional mistakes. Certified payroll is a subcategory of a contractor’s payroll responsibilities.


Many of the records are the same that you’ll need to retain for Fair Labor Standards Act (FLSA) purposes. 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.

  • For instance, any project involving a California awarding body must comply with prevailing wage rates specific to California.
  • For example, California has a lower threshold for triggering prevailing wages.
  • If you need additional guidance, contact the awarding agency offering the contract.
  • Please do not copy, reproduce, modify, distribute or disburse without express consent from Sage.
  • In 1931, Congress passed the Davis-Bacon Act to protect workers from low hourly pay.
  • Since the Davis-Bacon Act has been enacted, other acts have been passed to enforce prevailing wage laws.

Instead, master the process, or get help with your construction payroll and accounting. If the bill passes, it’ll bring $287 billion of investments into repairing and maintenance of the US roads, highways, and bridges. As a result, it’ll have a positive impact on the construction businesses that apply for government-funded https://dodbuzz.com/running-law-firm-bookkeeping/ construction projects. It’s always a good idea to talk to the contract administrator before submitting an additional classification and wage rate request. The contract administrator can offer suggestions and advice that may save you time and increase the likelihood that DOLwill approve your request.

What Is A Prevailing Wage? Understanding This Type of Compensation

It includes a statement of compliance that indicates the payroll forms are correct and complete. And asserts that you’ve paid each employee no less than the proper Davis-Bacon prevailing wage. Different states can have various prevailing wage laws, hourly pay rates, and fringe benefits. Therefore, when filling out your certified payroll forms, make sure that you use the forms of the state you work in. Tracking work classifications is an important part of correct accounting.

certified payroll reporting requirements

A certified payroll report shows who was paid, what they were paid, at what rate, and how they were compensated (wages, fringe benefits, bonuses, etc.). In this article, we demystify the certified payroll reporting process and explain all the important details. By the end, you’ll clearly understand the certified payroll process and feel confident applying for a government contract with the U.S. The prevailing wage was created to ensure hourly workers are paid fairly. To meet these requirements, your employees’ gross wages must meet the prevailing wage requirements for work on similar projects in the surrounding areas. To complete your certified payroll requirements, you’ll submit Form WH-347 to the Department of Labor.

Subcontractors must submit their CPRs to their primes, who in turn need to collect and review the reports (as well as produce CPRs for any of their own employees). Ultimately, primes are responsible for monitoring the compliance of their subs. California is known for things like the Golden Gate Bridge, year-round sunny weather, and, of course, being the state with one of the most stringent prevailing wage and certified payroll reporting requirements. Prevailing wage is the average or majority hourly rate of pay, benefits, and overtime a contractor pays. The pay rate of the majority workers, laborers, and mechanics in the largest city of a given county determine the prevailing wage.

  • The U.S. Department of Labor (DOL) requires that weekly Certified Payroll Reports are submitted for all prevailing wage projects.
  • Development and submission of a certified payroll report can be a challenge for contractors working on government-funded projects, especially if they lack expertise.
  • A manual can help you train new team members, work efficiently, and reduce errors.
  • Finally, as you add all the data, proceed to the second page to complete your certified payroll reporting.
  • After reading this, you’ll know the steps to take to make sure you maintain compliance.

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