For example, on federal jobs, any falsification of payroll reports can result in imprisonment for up to five years. However, QuickBooks Time provides employee wage data—such as an employee’s wages and hours worked and the type of work they performed—that certified payroll reporting requirements can be used to complete a certified payroll report. You could spend hours just collecting, reviewing, and confirming your payroll data, in addition to generating the actual paychecks and completing a certified payroll report.

In addition to payroll details, you have to include your company’s name, address, project name and location, and the project or contract number the work is being performed under. Certified payrolls are also numbered, and this must be included in the report. Once you start, you must submit a report for every week through the end of the project. If work is paused, you still have to submit a non-performance report so that at the end of the project, there is a continuous record of every week’s pay or non-work. So we’re breaking down what you need to know about certified payroll. Understand the basics of certified payroll and how QuickBooks supports reporting requirements.

Credits & Deductions

Carpenters, electricians, plumbers, ironworkers, flaggers, craftsmen, welders, concrete finishers, longshoremen, power equipment operators, and helpers are all job classifications that fall under prevailing wage law. A certified payroll specialist (CPS) is someone licensed and accredited by the National Association of Certified Payroll Specialists (NACPS). For more details about the certification process and requirements, visit the National Association for Certified Public Bookkeepers. 2022 has been a good year for certified jobs and there are no signs of slowing down.

• You have to post the Davis-Bacon wage determination poster in an accessible location so all workers can see it.
• Any contractor who is making payment to approved plans, funds, or programs in amounts less than the wage determination requires is obliged to pay the deficiency directly to the covered worker as cash in lieu of fringe benefits.
• However, you must make sure that all required information regarding you and your employees or contractors is included.
• But wait – some states also have certified payroll reporting requirements.
• This must be signed by someone in your company and serves to verify that you have paid everyone correctly, followed all laws and that the information in the report is true and accurate.
• It’s also highly error-prone if you are creating these payrollreports manually.

You need to know what to do next—and you shouldn’t be the only one who knows. A manual can help you train new team members, work efficiently, and reduce errors. It’s the most commonly used form, but it is optional — you can use some other form. The Department of Labor makes it easy to fill out with these Instructions For Completing WH-347.

Design a Payroll Procedures Manual

If your business works on a federal contract over $2,000, you’re required to comply with certified payroll requirements. The law applies to contractors and subcontractors hired to complete construction, alteration or repair of public buildings or public works. Under the Davis-Bacon and related Acts, the contractor is required to pay not less than prevailing wage, including fringe benefits, as predetermined by the Department of Labor. Certified payroll is a federal form WH-347, submitted weekly to the agency overseeing a government contract. The form lists every employee, their wages, the benefits they’re entitled to, the type of work they did, and the hours they worked.

• Before venturing into government contracts, you should thoroughly understand the Davis-Bacon Act, certified payroll requirements, and contract requirements.
• Keep in mind that the prevailing wage doesn’t apply to salaried employees in executive and administrative positions.
• Understand the basics of certified payroll and how QuickBooks supports reporting requirements.
• This is where you include employee names, addresses, socials, and work classification codes.
• Development and submission of a certified payroll report can be a challenge for contractors working on government-funded projects, especially if they lack expertise.

There are rules governing fair pay just like there are minimum wage laws. Here, you’ll include the name of the contractor or subcontractor awarded the contract and filing the paperwork. Again, you have the choice between using the government’s form or your own. If you use your own form, be sure to use the exact wording as included in the capital WH-347 Form provided by the DOL.

What are some common mistakes to avoid?

Use this checklist if you are considering claiming the credit or have already submitted a claim to the IRS. This is the letter where you certify that you and your business are in compliance with the terms of your federal contract. The “contractor, subcontractor or authorized person responsible for supervising the payment of wages” must sign the statement. A Certified Payroll Statement of Compliance is a signed statement (found on page two of the WH-347 form) that confirms covered workers were paid in accordance with the Davis-Bacon Act. You will need the following information on your company, the project and every employee that was paid to perform work on that project during the week. A few categories of public works projects are exempt from reporting online to DIR.

More than a dozen states require the Federal WH-347 form to be filed and most of them have specific state requirements that need to be met. If you understand what both of those entail, having your gums gutted by a metal object suddenly doesn’t seem like such a bad thing. Government inspectors visit worksites to verify roles, compensation, and other information.