What is Certified Payroll? Everything You Need to Know

January 31, 2022

Failure to meet this requirement or submitting certified payroll reports that are incorrect or late may put employers at risk for penalties. The notices must identify the type of benefits (such as pension or healthcare) provided, the hourly rate claimed for each benefit, the benefit plan provider and how to obtain a copy of its agreement. Employees must acknowledge receipt of this notice in writing, in their primary language, which the employer must keep for six years. Every weekly pay stub must identify the type of benefits provided and the hourly rate claimed for each benefit. Employers may instead provide the same written benefit plan notice with every weekly pay stub.

WH-516: MSPA Worker Information – Terms of Employment

• Your state can verify whether you must comply with a state wage requirement.
• The report will also require your organization’s primary business address.
• However, significant changes to the WH-347 form take effect in 2025, and it’s essential to understand how to navigate these updates correctly.
• Also, knowingly submitting false information on these reports can result in criminal or civil prosecution charges.
• These changes affect how certain information is reported and documented.
• With the right tech, certified payroll reporting doesn’t have to be an unwieldy weekly burden.

Employers are also required to submit Bookkeeping for Startups the benefit plan notice with every certified payroll report. Contractors subject to the Davis-Bacon labor standards may also have to abide by state and local laws governing prevailing wages and overtime payments. For instance, they might be required to file state or local certified payroll reports in addition to Form WH-347 for the federal government.

Certified Payroll Reporting

Certified payroll is a special type of weekly payroll used by contractors working on federally funded projects. It ensures you’re complying with the Davis-Bacon Act, which requires anyone working on these projects to receive prevailing wages and benefits set by the U.S. Certified payroll refers to the specific payroll report that contractors and subcontractors must submit when working on publicly funded projects. It requires additional documentation and validation to provide compliance with federal, state or local wage requirements.

Frequently asked questions employers have about certified payroll

Contractors must verify whether their work qualifies as a prevailing wage job. For example, installing electrical stations across the US is a federally funded project whereas local school construction is state-sponsored. You will need to fill in each employee’s corresponding work classification code. The job classification code tells the government how much you are supposed to pay your employee or contractor. Your contract will include a shortlist of codes and the corresponding minimum wage certified payroll reports you must pay them.

• You can also use built-in payroll tools to create a certified payroll report.
• Certified payroll is a weekly payroll report that contractors and subcontractors chosen to work on federally funded projects must fill out and submit.
• A certified payroll report (CPR) is a report that every contractor working on a publicly funded project is required to produce on a weekly basis (per DBRA regulations).
• Payroll records are available to the public using the CPR Public Search.
• Any contractor provider can complete and submit a certified payroll report.

Small business owners have a lot on their plates, so hiring professional payroll services or using great payroll software can simplify an otherwise time-consuming task. This is the letter where you certify that you and your business are in compliance with the terms of your federal contract. A Certified Payroll Statement of Compliance is a signed statement (found on page two of the WH-347 https://www.bookstime.com/ form) that confirms covered workers were paid in accordance with the Davis-Bacon Act. For federal contracts worth over $100,000, contractors must comply with additional rules and regulations as stipulated in the Contract Work Hours and Safety Standards Act. Ideally, you’ll already have reliable payroll technology that allows you to easily access this data.

WD-10: DBRA Report of Construction Contractor’s Wage Rates

• In this article, we’ll explore what exactly certified payroll reporting is, and how to submit the relevant form.
• Keep an eye out for the following common mistakes and adjust your practices accordingly to avoid them.
• They have the knowledge and experience to handle all types of payroll processes, including certified payroll.
• The Department of Labor will carefully review certified payroll reports to ensure you’re paying workers on these projects fairly and in a timely manner.
• If your contract mentions “Davis-Bacon”, you do not need to submit certified payroll to the department.

The government can assess penalties for contractors and subcontractors who do not comply with certified payroll reporting. On January 6, 2025, the Office of Management and Budget (OMB) approved changes to the WH-347 form after an extensive review process. These updates aim to enhance clarity, simplify reporting, and ensure accurate representation of prevailing wages and fringe benefits. The employee must be paid unconditionally and not less often than once every 14 days.