Certified Payroll in a Nutshell

Under the Davis-Bacon Act (DBA) of 1931, contractors and subcontractors of federally-funded or assisted construction projects valued at over $2,000 are required to pay their laborers and mechanics at least the prevailing wages and *fringe benefits. The payment must be awarded for corresponding work on comparable projects in the area in which the work is to be performed.  *Cash may be paid in lieu of fringe benefits.

These workers must be paid at least once a week, and a “certified payroll” must be reported within 7 days of each payment.

Form WH-347 is generally used to satisfy the certified payroll reporting requirement.  The first page of the form collects information about the contractor or subcontractor, the project, and the workers’ payroll summary information. The forms includes employee demographics such as their names, number of withholding exemptions, identifying numbers, work classifications, days and hours worked, rates of pay, gross earnings, deductions, net wages, etc.  The second and last page of this form contains a statement of compliance that requires a signature, certifying that the reported information— which must show that each worker has been paid at least the mandatory prevailing wages and fringe benefits— is true and accurate. *Specific instructions for completing this payroll form are provided by the Department of Labor’s Wage and Hour Division.

To make it even more challenging, certified payroll reporting forms and requirements may vary from state to state.

Whether certified payroll reporting is being completed manually through paper forms or electronically through software, the most efficient way to eliminate the stress of completing this daunting but legally required process is to partner with a Professional Employer Organization (PEO).  The responsibility would no longer be internal and trusting a PEO partner would ensure constant compliance with all related rules and regulations, letting  you focus on what you do best.

Contact Vested HR about your certified payroll needs today and give yourself peace of mind.

 

Toni Curling, M.Ed., SHRM-CP

Client Service Manager

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