Step-by-Step Guide to Setting Up a Certified Payroll Process
Setting up a certified payroll process is crucial for contractors and subcontractors working on government-funded projects to ensure compliance with prevailing wage laws and to avoid penalties. Here’s a comprehensive guide to establishing an efficient certified payroll process: 1. Understand Legal Requirements Federal Requirements The Davis-Bacon Act mandates that contractors and subcontractors pay prevailing wages to laborers on federally funded or assisted construction projects exceeding $2,000. Certified payroll reports must be submitted weekly using the WH-347 form. State and Local Requirements Many states have their own prevailing wage laws and certified payroll requirements. Research and understand the specific laws applicable in your state or locality to ensure full compliance. 2. Choose Appropriate Payroll Software Select payroll software that supports certified payroll reporting. Key features should include: Calculation of prevailing wages and fringe benefits. Generati...