The date should reflect the end of the workweek, not when you complete the form. To make your life easier, reduce the risk of mistakes and ensure you never lose important data, use an automated payroll solution. Even though you will have to invest in it, it will speed up your process and increase accuracy. This is the letter where you certify that you and your business are in compliance with the terms of your federal contract. Here, you’ll net sales include the name of the contractor or subcontractor awarded the contract and filing the paperwork. Accounts and business owners often create a reusable spreadsheet to make it easier to submit their weekly paperwork.

Davis-Bacon Act Violation Penalties

This illustrates how important the government considers certified payroll reports. Certified payroll reporting is crucial for government contractors and subcontractors. Established by the Davis-Bacon Act, this practice mandates organizations to provide a detailed weekly breakdown of their payroll. Although it’s standard practice, the complexity of certified payroll reports can catch many businesses off guard.

Common Mistakes To Avoid When Filing Certified Payroll Reports

These laws apply to the construction or repair of public buildings or public works projects. The term “public works” refers to structures built for public use, such as schools and highways. Organizations may also stumble by failing to include the value of fringe benefits paid in cash. This exact amount should be included under the “Fringe Amount paid in Cash Added to Rate of Pay” column on the WH-347. Bookkeeping for Chiropractors This figure, like employee wages, should be calculated based on its hourly value.

Three Paycheck Months: A Payroll Tip Guide for Construction Companies

Back then, contractors bidding on government jobs would try to win the job by offering low bids. These bids were made possible because the contractor planned on paying their employees minimum hourly wages. Some contractors and payroll providers think they must be a Certified Payroll Professional (CPP) to complete and submit a certified payroll report. Any contractor provider can complete and submit a certified payroll report. Certified payroll reports confirm you are paying employees a prevailing wage as part of the Davis-Bacon and Related Acts.

Exceptions to Prevailing Wage Requirements: Understanding Variations and Exemptions

As you can see, most of the information here is quite straightforward. But one area where people get confused is with work classification codes, so let’s take a closer look at that piece of the report. This is where you include employee names, addresses, socials, and work classification codes. A Certified Payroll Statement of Compliance is a signed statement (found on page two of the WH-347 form) that confirms covered workers were paid in accordance with the Davis-Bacon Act. It’s an accountability measure designed to protect the taxpayers and maintain faith that private contractors are working with everyone’s best interest in mind. A certified payroll specialist (CPS) must pass the Certified Payroll Professional (CPP) exam and be accredited by the American Payroll Association (APA).

A payroll report is deemed certified when it has a signed statement of compliance. This indicates that the WH-347 form is complete and correct, and that employees have been paid no less than the indicated Davis Bacon prevailing wage. Many construction companies are using handwritten timecards and spreadsheets to track time. This leaves lots of room for mistakes and makes it hard to track down and fix problems.

• However, it’s helpful to keep in mind that weeks without any work performed should still be considered when numbering payrolls.
• 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.
• If this is your first time submitting certified payroll, start with 1.
• If you’re filling the form out online, it will calculate the gross amount based on the information you’ve entered, including the hours worked and rate of pay.
• The following steps can help you understand and correctly complete  Form WH-347.

On page two of form  WH-347 there is a section intended to attest that to the best of your knowledge, the form is correct and that the payroll is in compliance with all applicable laws. This does not need to be notarized, but failing to truthfully complete out the form falls under penalties provided for under 18 U.S.C. § 1001 which includes a fine and potential jail time. This column is not required for certified payroll reporting but is there for your convenience. Certified payroll should be on your radar if how to report salaried employees on certified payroll your business takes on federal construction contracts.