Fingercheck supports certified payroll reporting. This simplifies, reduces errors, and ensures timely submissions. Businesses working on government construction projects must have certified payroll in order to comply. Sending certified payroll reports on time and accurately can help companies avoid large fines and maintain good relations with government agencies. This entire guide explains certified payroll and how to generate reports in Fingercheck.
What is certified payroll?
The term "certified payroll" refers to the Davis-Bacon and Related Acts (DBRA) reporting requirement. According to the DBRA, you have to report "certified wages." Contractors and subcontractors engaged in construction projects costing more than $2,000 that receive federal funding or assistance are subject to this federal regulation. The main goal is to ensure that workers get fair pay, which is based on the average wage rates set by the Department of Labor (DOL). Fingercheck calculates prevailing wages and benefits automatically, to ensure employees are always paid the correct rate.
Why use certified payroll?
Here is an example of a construction company using certified payroll with Fingercheck:
Jackson & Sons Roofing, a reputable roofing contractor, recently secured a contract to replace the roofs of several schools in their district. As a result of receiving federal grants, this project is subject to the DBRA, which mandates that contractors pay their employees prevailing wages and submit certified payroll reports.
Jackson & Sons Roofing decided to use Fingercheck’s certified payroll services to manage these challenges efficiently. Fingercheck offers a suite of tools tailored for companies working on government-funded projects:
Prevailing Wage Management
Fingercheck’s platform includes an up-to-date database of prevailing wage rates for various job classifications and regions.
This ensures workers are paid correctly according to legal requirements.
Automated Reporting
Fingercheck automates the creation of certified payroll reports.
Each week, the platform generates comprehensive reports that include all necessary details, such as employee information, hours worked, wages paid, and benefits provided.
Compliance Assurance
The system ensures that all data is accurate and compliant with federal regulations, reducing the risk of errors and penalties.
Efficiency
By automating complex calculations and report generation, Fingercheck saves significant time for Jackson & Sons Roofing’s payroll team.
This allows them to focus on other critical tasks and maintain operational efficiency.
Main components of certified payroll
Prevailing Wage Rates
Employers must pay workers the prevailing wage rates for their specific roles and geographic location.
The Department of Labor sets these rates to reflect regional standards.
We can help you set up prevailing wages.
Form WH-347
The primary document used for certified payroll reporting is Form WH-347.
This form captures essential details such as employee information, hours worked, wages paid, and job classifications.
Weekly Submission
Certified payroll reports must be submitted weekly (within seven days after each pay period) to the contracting agency overseeing the project.
Timely submission is crucial for compliance.
Statement of Compliance
Each payroll report must have a Statement of Compliance from the contractor or subcontractor attesting to the veracity of the data and adherence to wage regulations.
How to create certified payroll reports
Certified payroll reporting is simple with Fingercheck.
To generate a certified payroll report:
Sign in to your Fingercheck account as an Administrator.
Hover over the REPORTS tab, and select Payroll
Click +Custom Report
A slide out list of various Fingercheck data sets appears
Select Payroll
Then select the data source “Payroll9 - Payroll Details and Federal Tax”
In the pop-up, complete the necessary field, such as Code
Choose a Default Export Type of .CSV
Click Start
How to find and submit Form WH-347
The Department of Labor provides a PDF form with online and manual filling instructions. According to the DOL, filling out the form takes about 55 minutes. Download Form WH-347 here.
The contracting agency must receive Form WH-347 seven days after each weekly pay period. You can email, fax, or mail Form WH-347. Keep copies of all forms for three years after your contract ends. Check with your contract agency for Form WH-347 submission requirements.
Steps to ensure compliance
When filling out the certified payroll form (Form WH-347), contractors and subcontractors should avoid common mistakes to ensure compliance:
Understand Wage Determinations
Before starting a project, review the prevailing wage determinations specific to your project’s location and job classifications.
Prevailing wage rates can be complex, varying by location and job classification.
We can help you set up prevailing wages.
This ensures you pay your workers correctly from the outset.
Accurate Record-Keeping
Maintain detailed records of all hours worked, wages paid, subcontractor details, pay period dates, pay rates, and employee classifications.
Weekly submission deadlines can be challenging to meet.
Inaccurate or incomplete reports can lead to penalties.
We can assist you in implementing a structured workflow and leverage Fingercheck to automate and expedite the reporting process.
Out-of-Order Payroll Numbering
Use a sequential numbering system based on the weeks laborers work under the contract to maintain order and clarity.
Omitting the Project Number or Signature
Always include the contract project number to facilitate data tracking and compliance.
Double-check all entries on Form WH-347 and ensure the Statement of Compliance is signed correctly.
To verify its authenticity, ensure the contractor or subcontractor has signed the form.
If your company works on certified payroll projects in different states or jurisdictions, you may need to submit different types of certified payroll reports. Additionally, you may need to report fringe benefits differently across different certified jobs.
Paying attention to these details helps avoid errors and ensures the form is correctly filled out. Fingercheck‘s certified payroll technology makes it easy to report to multiple agencies.
The importance of compliance
Non-compliance with certified payroll requirements can result in severe consequences, including fines, project delays, and potential disqualification from future federal contracts. By adhering to certified payroll regulations, you avoid penalties and demonstrate your commitment to fair labor practices and ethical business conduct.
For more information and resources on certified payroll, visit the Department of Labor’s website.