Fingercheck can help you with your certified payroll; we support certified payroll reporting. This can streamline the process, reduce errors, and ensure timely submissions. Businesses working on government construction projects must have certified payroll in order to comply. Ensuring the timely and accurate submission of approved payroll reports can prevent significant fines and maintain a positive reputation with government agencies. Here is a complete guide to help you understand how certified payroll works 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." This federal regulation applies to contractors and subcontractors involved in construction projects costing more than $2,000 that receive federal funding or assistance. 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 that uses 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 allows you to create an up-to-date database of prevailing wage rates for various job classifications and regions.
This guarantees the correct payment of workers in accordance with legal requirements.
Find out the local prevailing wages for your area here.
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 parts 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
Form WH-347 serves as the main document for certified payroll reporting.
This form captures essential details such as employee information, hours worked, wages paid, and job classifications.
For New York City contracts, there is the NYC Certified Payroll Report. Find out more at the NYC Comptroller’s website.
Weekly submission
The project's contracting agency must receive certified payroll reports every week, within seven days after each pay period.
Timely submission is crucial for compliance.
Having a weekly payroll schedule helps with staying compliant.
Statement of Compliance
Each payroll report must include a Statement of Compliance from the contractor or subcontractor attesting to the data's integrity and adherence to wage regulations.
How to create Certified Payroll Reports
Certified payroll reporting is simple with Fingercheck.
It is recommended to set up a weekly payroll schedule to ensure compliance and ease.
In default settings, you should have the “Import Dates from Time Card” selected.
Go to Setup > Company > Default Settings
To generate a certified payroll report for WH-347:
Sign in to your Fingercheck account as an Administrator.
Navigate to the REPORTS tab and select Payroll.
In the System tab, locate Certified Payroll Reports.
Type "Pay CP" or "Cert" in the search bar to quickly bring up the report.
Click Run Report
In the slide-out, select the report's pay period date.
Choose which employees you want to add to the WH-347.
Complete the necessary fields in Additional Parameters.
Starting and Ending Run Number fields will be pre-populated by the payroll selected.
If you have multiple payroll runs on the same day, you can change these.
• These three fields correspond to those in WH-347. You must manually complete the fields to populate the form.
Project and Location
Project or Contract No.
Payroll Number: Beginning with the number "1", list the payroll number for the submission.
The following fields need to be previously configured in Fingercheck:
Worker Classification Field: Select a classification: Job, Task, Costcenter1-5, PayGroup, JobTitle, Location, or Position.
Input the selected classification exactly as it appears above, with no spaces.
Learn how to set up these codes here.
Standard Time Earning Codes: RG (regular) will be the default.
By separating them with a comma, you can add additional earnings codes as needed.
Go to Setup > Payroll > Earnings to find the earnings codes you wish to include in the report.
Learn how to set up these codes here.
Overtime Earning Codes: OT (overtime) will be the default.
By separating them with a comma, you can add additional earnings codes as needed.
Go to Setup > Payroll > Earnings to find the earnings codes you wish to include in the report.
Learn how to set up these codes here.
(Optional) Filter by: If you wish to filter the report by a specific job, toggle on this feature.
This allows you to narrow down the jobs listed on the WH-347.
Click Preview to view the completed report.
Either download, save, or print the form.
To generate a certified payroll report for the NYC Certified Payroll Report:
Sign in to your Fingercheck account as an Administrator.
Navigate to the REPORTS tab and select Payroll.
In the System tab, locate Certified Payroll Reports.
Type "Pay CP" or "Cert" in the search bar to quickly bring up the report.
Click Run Report
In the slide-out, select the report's pay period date.
Choose which employees you want to add to the the NYC Certified Payroll Report.
Complete the necessary fields in Additional Parameters.
Starting and Ending Run Number fields will be pre-populated by the payroll data.
If you have multiple payroll runs on the same day, you can change these.
These fields match up to the fields on the NYC Certified Payroll Report.
Name of Prime Contractor or Building Owner or Utility: Enter the name of the company that has executed the contract with the New York City government agency or public authority.
Contract Registration Number: Enter the New York City contract registration number (begins with the year) or the public authority contract number.
Agency: Enter the name of the New York City government agency or public authority that executed the contract.
Agency PIN #: Enter the New York City government agency PIN# from the contract proposal, if applicable.
Project or Building Address: Enter the street address of the location where the work was performed during the workweek indicated, or enter “various locations” if more than one location for the workweek
Project Name: Enter the descriptive name of the project or contract. If it is a project labor agreeement, Check the PLA Box..
The following fields need to be previously configured in Fingercheck:
Worker Classification Field: Select a classification: Job, Task, Costcenter1-5, PayGroup, JobTitle, Location, or Position.
Input the selected classification exactly as it appears above, with no spaces.
Learn how to set up these codes here.
Standard Time Earning Codes: RG (regular) will be the default.
By separating them with a comma, you can add additional earnings codes as needed.
Go to Setup > Payroll > Earnings to find the earnings codes you wish to include in the report.
Learn how to set up these codes here.
Overtime Earning Codes: OT (overtime) will be the default.
By separating them with a comma, you can add additional earnings codes as needed.
Go to Setup > Payroll > Earnings to find the earnings codes you wish to include in the report.
Learn how to set up these codes here.
• Filter by: If you wish to filter the report by a specific job, toggle on this feature.
This allows you to narrow down the jobs listed on the NYC Certified Payroll Report.
Click Preview to view the completed report.
Either download, save, or print the form.
How to submit form WH-347
Fingercheck provides you with a PDF that is compliant with the Department of Labor. After completion, you can download, save, or print the forms. 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 to see what Form WH-347 submission requirements are.
Steps to ensure compliance
When filling out the certified payroll form (Form WH-347 or NYC Certified Payroll Report), 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 leveraging Fingercheck to automate and expedite the reporting process.
Out-of-order payroll numbering
To maintain order and clarity, use a sequential numbering system based on the number of weeks laborers work under the contract.
Omitting the project number or signature
Always include the contract project number to facilitate data tracking and compliance.
Verify all entries on Form WH-347 and make sure you've signed the Statement of Compliance correctly.
To verify its authenticity, make sure 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.
By paying attention to these details, you can prevent errors and ensure correct form filling.
Fingercheck‘s certified payroll technology makes it simple 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. You avoid penalties by adhering to certified payroll regulations, demonstrating 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. For New York City, visit the NYC Comptroller’s website.
This information is not intended to serve as legal or tax advice and is provided as a courtesy; it is subject to change. We try to keep the information in this article current, and new laws may go into effect.