What You Wish You Would Have Know About Certified Payroll
You may have heard the term “Certified Payroll” thrown around, but what does it really mean for contractors?
Basically, it’s a detailed record of all the cash we pay out for a government contract. This includes info like hours worked, wages paid, and the specific jobs performed by our employees. And let me tell you, it’s not something we can ignore – it’s required under the Davis-Bacon Act and Related Acts.
According to the Department of Labor,
“The Davis-Bacon Act applies to contractors and subcontractors performing work on federal or District of Columbia contracts. The Davis-Bacon Act prevailing wage provisions apply to the “Related Acts,” under which federal agencies assist construction projects through grants, loans, loan guarantees, and insurance.
Since then, many states have adopted similar legislation. Therefore, construction companies looking to perform government work should prepare for navigating the intricacies of this process.”
The Process of Certified Payroll Report Generation: Generating a certified payroll report is a unique process that entails entering a date and job code for each entry. This information is used to produce a report that details the hours worked and labor costs for a particular job on a daily basis for a period of one week. It’s important to note that multiple reports may be required during the same payroll cycle, and a single certified payroll report may span into two payroll dates.
Required Information in a Certified Payroll Report: To complete a certified payroll report, contractors are required by law to provide specific information, as outlined in the federal WH-347 form form. This includes the name and identification number of every employee who works on the job site, their job classification, the number of hours worked, including overtime, the employee’s rate of pay based on the prevailing wage, including fringe benefits or cash paid in lieu of fringe benefits, the gross amount earned, deductions or withholdings, and net wages paid.
How To Report A Certified Payroll
To complete a certified payroll report, there are specific items required by law. These are set out in the federal WH-347 form and include:
- Employee’s name and identification number.
- Employee’s job classification.
- Hours worked, including overtime.
- Employee’s rate of pay based on the prevailing wage, including fringe benefits.
- Gross amount earned.
- Deductions or withholdings.
- Net wages paid.
The reason for all this paperwork is simple – the government wants to ensure that we’re paying our workers fair wages. And for roofing jobs that are funded by grants, loans, or insurance from the government, it’s even more important to get this right.
Now, I know this can all seem like a hassle, but trust me – it’s worth it. Many states have similar legislation in place, so we’re not alone in navigating the ins and outs of certified payroll. And even though it may be a subset of your normal payroll, it’s a vital part of doing business with the government.
So, let’s make sure we’re keeping accurate records and providing the necessary reports. That’s where the wisdom of outsourcing your payroll to the professionals at Total Payroll Management can make this a breeze!
The Smart Move:
Proven Experience in Payroll Management Services: The folks at Total Payroll Management have a wealth of experience in payroll management services, including processing and reporting certified payrolls. As a leading provider in certified payroll management services for many years, you can trust them to provide the highest quality service.
Quality Certified Payroll Management Services: TPM’s Certified Payroll Management Services are of the highest quality, and they take great effort in delivering accurate and timely results. They understand the complexities of the certified payroll process and have the expertise to ensure that your reports are completed correctly and on time. With TPM, you can rest assured that your employees will be paid fairly and that your company will remain compliant with government regulations.
Total Payroll Management offers comprehensive payroll management services that are efficient, accurate, and reliable. Their experience and expertise in Certified Payroll Management Services make them the go-to choice for companies in all 50 states. With their Payroll Navigator and GPS Enabled Web Clock, they make it easy to manage your payroll, so you can focus on other important aspects of your business.