What is a Certified Payroll Report?
A report comprised of two components, a payroll report and a statement of compliance report.
The payroll report provides the contractor the ability to demonstrate how an employee was classified, the number of straight time and overtime hours worked by an employee in a particular labor classification, along with the hourly straight time and overtime wages paid to an employee.
The statement of compliance provides the contractor the ability to demonstrate whether it did or didn’t provide fringe benefits to an employee. Additionally, it requires that the contractor attest that the information provided on both reports is truthful and accurate. The statement of compliance for Federal Projects and for State Projects is different and the appropriate form should be used accordingly.
The payroll report and statement of compliance report are legal documents; willful falsification of one or both of the documents may result in civil action and/or criminal prosecution.
Who should submit a Certified Payroll Report?
A contractor and 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 on a weekly basis.
How long does a Certified Payroll Report need to be kept?
The prime contractor must retain its certified payroll reports, along with those of its subcontractors for a period of three years after the certificate of final acceptance has been executed.
What happens if a Certified Payroll Report is not submitted?
If a prime contractor or a subcontractor fails to submit a certified payroll report to the contracting agency, the contracting agency may withhold a portion of one or more partial estimates until the reports are received. In addition, contractors that fail to submit certified payroll reports could be subject to a penalty pursuant with the prevailing wage laws and regulations.