If your business is working on — or is aiming to work on — federally-funded construction projects in the US, you need to be aware of certified payroll reporting. Failure to comply with this process can lead to serious penalties, including fines, withheld payments, or even prosecution.
In this article, we'll explore what exactly certified payroll reporting is, and how to submit the relevant form. We’ll also explore the steps you can take to streamline the process, all while ensuring full compliance.
What is certified payroll reporting?
Certified payroll reporting is a mandatory process for businesses that are working on federally-funded construction projects. It involves submitting weekly payroll reports to the Department of Labor (DOL), which confirm that your employees are receiving prevailing wages as required by the Davis-Bacon and Related Acts (DBRA).
What are prevailing wages?
Prevailing wages are the standard wages (including fringe benefits ) paid to workers in a specific occupation within a particular geographic area. These wage rates are determined by government agencies, such as the DOL, and are designed to protect workers and ensure that government contracts are not awarded to companies that underpay their employees.
