What is Certified Payroll?
Certified Payroll is a special kind of payroll required when a Contractor wins a Government Project. These Projects can be for any type of governmental agency and may be required at the County level all the way up to the Federal level. Certified Payroll requires the Contractor to track hours by day per Employee and then to submit this on a Certified Payroll Report.
“Certified Payroll is required for most government construction jobs.”
What is a Certified Payroll Report?
The WH 347, is a Certified Payroll report which is the most commonly required report. This is a special form authorized by the Federal Government which tracks specific information such as project, rate of pay, hours worked per day by employee, net pay, taxes and more. Click here to see a sample of a WH 347 with descriptions. Some States and Locals require the use of LCP Tracker, which is an electronic system that submits the required data for Certified Payroll. Contact Payroll Services LLC for more information on our live integration. This report is required to be submitted weekly and is why a Weekly Payroll Frequency must be used.
What is the Davis Bacon Act and Why Do I Have to Pay a Different Wage Rate?
The Davis bacon Act, or the prevailing wage law, requires Contractors to pay a specific wage (the prevailing wage) to employees based on several factors. These wages vary depending on location, skill level of the employee (foreman, apprentice, etc) as well as the classification of the job type. When you bid on the Project, the project will have outlined what the required wage rate is for the specific job you are performing. Employers are required to provide the rate information to Payroll Services. Have questions? Contact us today.
“Certified Payroll has special pay rate requirements that all Contractors must follow.”
What’s a Fringe Benefit and Why Do I have to Pay More?
A Fringe Benefit is compensation received by an employee that is not paid in cash. Examples of Fringe Benefits are Employer paid health insurance, paid time off, retirement match, and more. The prevailing wage has a wage component and a fringe benefit component. In the event the employer does not provide fringe benefits or not enough, the Employer must make this payment via wages. Have questions? Contact us today.
What Information Am I Responsible For?
You are responsible to know all the information about the project such as the project name, address, rate of pays and classifications of employees. This information should have been provided during the bid and or awarding of the project. Additionally, you will need to track your Employees’ hours by day and submit it in that format. Have questions? Contact us today.
“You may be required to submit Certified Payroll reports using LCP Tracker, the WH347 or other formats.”
Do You Have a Form To Provide Payroll Services the Required Information?
Of Course! This form, has the setup information we require as well as a sample of a timesheet that can be used to track your Employee’s time. We highly recommend you utilize a timekeeping system which will make your administration easier.
Who Submits My Certified Payroll Reports?
YThe Employer is required to submit the Certified Payroll Report to the main Contractor or Customer. If you are required to upload your information to LCP Tracker or your State’s System and Payroll Services is providing that file for you, you will need to download the file from our Payroll System and upload the file to the appropriate system. Have questions? Contact us today.
The Certified Payroll Rate is Lower than My Normal Regular Rates, What Do I do?
In some rare cases, the prevailing wage is less than the Employee’s regular rate of pay. When this occurs, it is up to management to decide what to pay the Employee. Prevailing Wage law sets a minimum, not a maximum rate of pay. If this rate differs from the required rate, please make sure you let your Customer Service Rep know which rate you want to use. If you do not let us know, the rate associated with the classification of the Employee will be used. Have questions? Contact us today.