If you win a contract for building something for the government then you must submit a certified payroll report every week to the project’s general contractor. If you aren’t submitting this report then you will not be complying with the Davis Bacon Act. For not submitting a certified payroll report you can be prosecuted even if you are paying your employees the prevailing wage. Hence, it is very important for you to understand what you need to submit and this varies for every state.

How to Create a Certified Payroll Report

States which don’t have their own prevailing wage laws

There are 14 states which don’t have their own prevailing wage laws. These states are,

  1. Arkansas
  2. Idaho
  3. Indiana
  4. Kansas
  5. Kentucky
  6. Montana
  7. New Hampshire
  8. Oklahoma
  9. South Carolina,
  10. Tennessee
  11. Utah
  12. Vermont
  13. West Virginia
  14. Wyoming

What needs to be submitted in these states?

In these states, the federal regulations for certified payroll need to be followed. According to these regulations, you need to submit the following items in order to complete your certified payroll report. These items are set out in the federal WH-347 form.

  • The name and ID number of every employee who works on site.
  • Each employee’s job classification (e.g. carpenter, electrician, etc.).
  • The number of hours each employee worked, including overtime.
  • Every employee’s rate of pay based on the prevailing wage, including fringe benefits (or cash paid in lieu of fringe benefits).
  • Every employee’s gross amount earned.
  • Every employee’s deductions or withholdings.
  • Every employee’s net wages paid

States which have their own prevailing wage laws

States which have their own prevailing wage laws include;

  1. Alabama
  2. Alaska
  3. Arizona
  4. California
  5. Colorado
  6. Connecticut
  7. Delaware
  8. Florida
  9. Georgia
  10. Hawaii
  11. Illinois
  12. Iowa
  13. Louisiana
  14. Maine
  15. Maryland
  16. Massachusetts
  17. Michigan
  18. Minnesota
  19. Mississippi
  20. Missouri
  21. Nebraska
  22. Nevada
  23. New Jersey
  24. New Mexico
  25. New York
  26. North Carolina
  27. North Dakota
  28. Ohio
  29. Oregon
  30. Pennsylvania
  31. Rhode Island
  32. South Dakota
  33. Texas
  34. Virginia
  35. Washington
  36. Wisconsin

In these states you will have to check for any additional regulations before you submit your certified payroll report.

What Is a Statement of Compliance?

You need to include a signed statement of compliance when you submit your certified payroll report. This statement of compliance confirms that each employee on the payroll is being paid the prevailing pay and that all of the information on your report is correct. This statement of compliance must be signed by the project’s payroll administrator. It confirms that you abide by the terms and conditions of your contract.

What is included in the Statement of Compliance?

The statement of compliance includes:

  • The date of the report submitted.
  • The name and position of the person submitting the statement.
  • The name of the company working on the project.
  • The name of the project.
  • The date of the beginning work week, “[date] day of [Month], [year].”
  • The name of the company working on the project.
  • A deduction statement like, “Deductions are based on gross wages and include but are not limited to: Federal Withholding, FICA, Medicare, State Withholding, State Disability Insurance, Union Deductions, Child Support, or Other Garnishments.”
  • An indication of how fringe benefits are paid (either in cash or through plans, funds, or other programs).
  • Exceptions to indicate any employees who don’t qualify for fringe benefits.
  • Any remarks regarding payroll, including the frequency of payroll (submitted on a weekly or bi-weekly basis, for example).
  • The name and position of the person submitting the statement.
  • The signature of the person submitting the statement.

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