Navigating Certified Payroll
Often times, contractors have the opportunity to bid and work on projects for a government agency, be it federal or state. When that opportunity arises, it is imperative that the contractor or subcontractor has the ability to process certified payrolls. Certified payrolls are required when a contractor has a contract with a government agency that is for construction, alteration, or repair of public buildings of public works and is over $2000.Examples of activities that could be covered by certified payroll are: painting, plumbing, electrical, drywall, and cleaning.
Certified payroll is a special weekly payroll report using Form WH-347 that needs to be completed by contractors that are working on federal funded projects. This form is completed and submitted to prove that they are paying their workers prevailing wage. Prevailing wage is a minimum wage set by the U.S Department of Labor for the work that is being performed. Contact the U.S. Department of Labor to find the wage rates and fringe benefits rates for each labor category.
Once a regular pay date for a pay period that includes certified payroll has been completed, Form WH-347 has to be completed and submitted. The form covers anyone who is performing construction work on the project. In addition, a Statement of Compliance needs to be signed certifying that each employee was paid no less that the proper prevailing wage for the work performed. Penalties for non-compliance may include termination of the contract, contractor liability for any resulting costs to the government and debarment from future contracts for up to three years.
If your company is seeking to bid on federal contracts and are unsure about certified payrolls, contact A&A Employer Services. We have had over 15 years in processing certified payrolls and providing the necessary information to complete the necessary reporting.
Need help running certified payroll reports for you company, or have questions. Please click the calendar below and schedule a call.