What is Certified Payroll?

Construction accounting that can be especially confusing for small business owners. To help you gain a better understanding of this concept, we’ll dive deeper into the basics of certified construction bookkeeping payroll. Workforce management solution your business needs to run efficiently, improve your employee productivity, and ensure that you’re compliant with federal requirements.

A contractor that performs work under a construction contract that is funded in whole or in part with state and/or federal funds must submit a certified payroll report. A certified payroll report shows who was paid, what they were paid, at what rate, and how they were compensated (wages,fringe benefits,bonuses, etc.). Certified payroll is a weekly payroll report that must be submitted by employers who work on projects fully or partially funded with federal money that have a contract value over $2,000.

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Your workers’ gross wages must be at least the “local prevailing wage rates for corresponding work on similar projects in the area.” You’ll also have to make sure you comply with your state’s prevailing wage rates. That means you’ll have to pay whichever rate is higher – the federal or state. To do certified payroll reporting properly, you need to fill out and submit Form WH-347 weekly to the agency overseeing your contract. You also need to avoid any common mistakes or violations that may result in fines or penalties.

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Some states, such as California and New York, have specific laws that impact certified payroll. Make sure to always check with state laws and regulations before processing or reporting certified payroll for your employees. Correctly following certified payroll requirements starts with an organized system. This way, you’re not gathering payroll information at the last second to fill a certified payroll report. Federal projects are always subject to stringent laws for compliance.

As a result, it’ll have a positive impact on the construction businesses that apply for government-funded construction projects. After Form WH-347 is filled out for the week, complete the statement of compliance. It should include the date, employer’s name and title, the name of the project, explanations for deductions and exemptions, and the employer’s signature. As a result, the types of companies who may need to submit certified payroll are not limited to any particular industry.