5 frequently asked questions and the answers about certified payroll and prevailing wage.
Table of Contents:
- 1: What is the purpose of certified payroll reports?
- 2: Why do I need to submit these payroll reports?
- 3: What information is required on certified payroll reports?
- 4: How often do I need to submit certified payroll reports?
- 5: What are the penalties for non-compliance?
- Bonus: What software helps with submitting certified payroll reports?
If your organization works on federally funded projects, a thorough understanding of certified payroll is crucial. Certified payroll reports are mandatory documentation that must be submitted to the Department of Labor on a regular basis, serving as a record of employee wages and benefits received.
If you find yourself uncertain about managing these reports or have questions about them, this blog serves as the comprehensive guide you need.
1: What is the purpose of certified payroll reports?
The primary goal of a certified payroll report is to ensure compliance with "prevailing wage" regulations. The prevailing wage represents the minimum wage and benefit rate for workers in specific occupations and locations. Determined by the Secretary of Labor or local surveys of compensation levels, prevailing wages set standards for public works projects and government contracts.
2: Why do I need to submit these payroll reports?
The roots of certified payroll reports trace back to the Davis-Bacon Act, passed in 1931 to safeguard workers from unfair compensation practices. According to the Act, if your business undertakes a government-funded project involving construction, alteration, or repair of public buildings or works exceeding $2,000, you must adhere to certified payroll requirements.
3: What information is required on certified payroll reports?
Certified payroll reports are submitted using Form WH-347 and must include comprehensive details for each employee, such as their name, title, hours worked, pay rate, and any deductions. Additionally, information about fringe benefits received, such as health insurance or retirement savings, should be included on the form.
4: How often do I need to submit certified payroll reports?
Certified payroll reports are required to be submitted on a weekly basis using Form WH-347. However, it is essential to keep in mind that rules can vary from state to state. To ensure your business complies with all the necessary regulations, it is advisable to seek guidance from legal representation or your payroll provider.
5: What are the penalties for non-compliance?
Certified payroll reports play a vital role in maintaining compliance with labor standards and promoting transparency in federally funded projects. By accurately documenting wages and benefits, organizations not only uphold legal requirements but also foster trust and credibility with government agencies and stakeholders. Failure to submit accurate and timely certified payroll reports can result in severe penalties, including fines and disqualification from future government projects.
Bonus: What software helps with submitting certified payroll reports?
Greenshades has partnered with Points North, a leading provider of certified payroll solutions. This collaboration offers businesses a seamless approach to managing certified payroll requirements while ensuring compliance with prevailing wage laws and government-funded projects.
With the Points North solution effortlessly integrating employee data, daily hours, project information, paycheck values, and more from Greenshades, you can easily generate prevailing wage reports each week. Additionally, you'll benefit from:
- One-Click Report Generation: Easily create all certified payroll reports for any number of active projects with just a single click, saving time and effort.
- 'No Work' Reports Made Easy: Generate 'No Work' reports alongside reports for active work jobs, streamlining the reporting process for specific projects.
- On-Demand Summary Reports: Generate summary reports (EEO, Monthly Utilization, etc.) using definable date ranges, providing valuable insights into your payroll data.
With the combined expertise of Greenshades and Points North, you can confidently navigate the complexities of certified payroll reporting, ensuring accuracy and compliance every step of the way. Learn more by scheduling a demo today.
