Each week, every federal contractor or subcontractor has to provide the federal agency with a copy of all payrolls for any work done on federal or federally-aided construction type contracts and subcontracts. The payroll shows all money dispersed to each worker, whether as basic rates or as cash in lieu of fringe benefits. This certified payroll is a way to prove compliance and that the contractor is paying workers as they should be. The payroll must include a list of all workers on the project, including work classifications, hours worked, wage rates, benefits, overtime compensation, total wages paid, and information related to payroll deductions. The certification verifies that all information is correct and complete and that every laborer and mechanic has been paid nothing less than the DBA prevailing wge and benefit rate for the work performed that week. Every payroll that’s submitted must be accompanied with a “Statement of Compliance” and signed by the contractor, subcontractor, or authorized officer who supervises payment of wages.
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Form WH-347 is highly recommended for submitting weekly payrolls. This particular form is optional, but convenient for contractors and subcontractors. If properly filled out, Form WH-347 form will satisfy the requirements of Regulations, Parts 3 and 5 (29 C.F.R., Subtitle A), as to payrolls submitted in connection with contracts subject to the Davis-Bacon Act and related acts. However, you should be aware that while the use of Form WH-347 is up to you, the following is mandatory for covered contractors and subcontractors doing work on federally financed or assisted construction contracts, and is looked at by the DOL and federal contracting agencies to determine that employees have received legally required wages and fringe benefits:
- Respond to the information collection contained in 29 C.F.R. §§ 3.3, 5.5(a).
- The Copeland Act (40 U.S.C. § 3145) requires contractors and subcontractors doing work on Federally financed or assisted construction contracts to “furnish weekly a statement with respect to the wages paid each employee during the preceding week.”
- S. Department of Labor (DOL) Regulations at 29 C.F.R. § 5.5(a)(3)(ii) dictate that contractors submit weekly a copy of all payrolls to the federal agency contracting for or financing the construction project, accompanied by a signed “Statement of Compliance” proving that the payrolls are correct and complete and that each laborer or mechanic has been paid nothing less than the proper Davis-Bacon prevailing wage rate for the work done.
- Lying in any way on certified payroll records or about the required kickback of wages may subject a contractor or subcontractor to civil or criminal prosecution, the penalty for which may be fines and/or imprisonment.