Quick Guide: What You Need To Know About Certified Payroll Reports
Construction company owners who have just won a bid for their first government project are most likely confused with certified payroll reports. Since it is ill-advised to even bid on a federal-sponsored project without knowing about the Davis Bacon Act, it might be time for a crash course. Here are the basics of a certified payroll all businesses should know about before bidding for a government project:
What Is A Certified Payroll Report?
Another name for this type of report is federal form WH-347. This certified report should be sent to the overseeing government agency once a week and it must include all updates and changes. The report must include the list of all employees, their wages, all the benefits they are entitled to receive while employed, the work they have done, as well as the hours they have completed for the week.
The document must also show all the withholdings, the gross wage amount, and most importantly, the report must have a signed statement of compliance from the contractor.
How The Report Becomes Certified
The only requirement for the report to be deemed certified is the statement of compliance. This piece of paper indicates that all forms are complete and correct. It certifies that all employees receive their prevailing wage based on local laws.
The compliance documents should be signed by the head of the payroll or by the owner of the company because it signifies that they understand and acknowledge the possible consequences for willful falsification.
Common Certification Mistakes To Avoid
The Davis Bacon compliance software ensures that all documents sent to the overseeing agency are correct and up to date. However, if your company wants to double check for errors, here are the most common and costly ones:
Mistake #1: Thinking All Payroll Formats Are The Same In All States
A company that does out of state contracts with the government should pay attention to local form formats and requirements. The Davis Bacon Compliance Software does short work of this by scanning updated databases for all local documentation requirements. Take note that some state will require several forms that may or may not include electronic files.
Mistake #2: Certified Payroll Professionals Are A Must
Although the work of a CPP is very helpful, they are not a requirement. Some updated software are able to create an accurate report without the help of a CPP.
Mistake #3: Failing To Update Forms
Laws are constantly changing which means the Davis Bacon Act can also change and the amount for prevailing wage in an area is bound to increase over time. Relying on old forms can cost your construction company a lot of money so it is in your best interest to continuously update the forms you use for business.
Don’t make these simple, yet costly mistakes ever again. Use software that is specifically programmed to scan all databases to ensure your business complies with the current and local DBA. This way, you are guaranteed to always be on the right side of labor laws, no matter where your project is located.