Government construction contracts can be a major benefit for your company. You will need to fill in each employee’s corresponding work classification code. The job classification code tells the government how much you are supposed to pay your employee or contractor. Your contract will include a shortlist of codes and the corresponding minimum wage you must pay them.
Before joining Fit Small Business, Heather was the Payroll/HRS Manager for a top cloud accounting firm in the industry. Her experience has allowed her to learn first hand what the payroll needs are for small business owners. This table provides a quick overview of the basic information you’ll need to add to the top of the form. Then, we’ll get into the employee specifics and work details you’ll enter in the rest of the form.
What Is Certified Payroll & How to Comply
In the Exceptions (Craft) column, you would write Unskilled Laborers. In the Explanation column, you would write, per Waged Decision #, employees classified as Unskilled Laborers receive no hourly fringe benefit rate. (a) Where Fringe Benefits are paid to Approved Plans, Funds, or Programs – means that you pay all required fringe benefit rates to a how to report salaried employees on certified payroll Union or Bona-fide Fringe Benefit Plan. For example, per the wage decision, an employee might have a work classification that has a base rate of pay of $10.00 per hour with a fringe rate of $5.00 per hour. It is required that you report Straight Time (ST) earnings as $10.00 and Overtime (OT) earnings as $15.00 (base rate PLUS half time premium).
This illustrates how important the government considers certified payroll reports. Under DBRA and SCA, every covered contractor and subcontractor must provide weekly reports to the contracting agency. This report must include a detailed copy of payroll information to verify that workers are being paid the correct prevailing wage and fringe benefit rate. This report must also be signed by someone in a position to verify that the information is correct and submitted within seven days after the regular pay date for the pay period. Construction companies that work on federal contracts that fall under prevailing wage laws like Davis-Bacon and related acts must submit certified payroll reports.
What Is Payroll? Everything Business Owners Need to Know
If this is too costly, at the very minimum, business owners should rely on a smart and trusted employee to complete the process. Good payroll software and payroll companies will be able to do all this reporting. They keep track of changes in forms and file types for you and export the information in the correct format.