Instructions For Completing Payroll Form, WH-347 U S. Department of Labor

Fringe benefits must also be paid for all hours worked, including overtime. Form WH-347 is the form you’ll use to submit your weekly certified payroll reports. There’s no denying that filling out how to report salaried employees on certified payroll and submitting certified payroll reports each week can be a daunting and time-consuming endeavor. The good news is there are several ways you can simplify the process and ensure compliance.

It is required that you report Straight Time (ST) earnings as $10.00/$5.00 and Overtime (OT) earnings as $15.00/$5.00 (base rate plus half time premium plus hourly fringe benefit rate). You would then, also, check Box 4 (b) on the Statement of Compliance. See item number 13 in Part 2 – Completing the Statement of Compliance. Any employer accepting a federally funded construction contract worth over $2,000 must utilize certified payroll. This wouldn’t include a contractor who comes in to replace or repair a leaky faucet in a government building. Small repairs that one or two people complete within a couple of hours generally aren’t lucrative enough for special payroll purposes.

Step 3: Track employee time and calculate gross pay

Certain organizations may also be required to submit a “statement of compliance,” or a signed confirmation that all information within the certified payroll is accurate to the organization’s best knowledge. The same laws that require you to pay prevailing wages also require the submission of weekly certified payroll reports. These reports show that you’re complying with the law and serve as a record of your compliance efforts. Failing to submit certified payroll reports, or getting behind in reporting, can lead to penalties or delay funds dispersal. Submitting certified payroll reports that are not accurate can even lead to financial and legal trouble.

The agency also forecasts that the policy change will generate about $803 million in employer compliance costs over the first 10 years of its implementation. In January 2025, the agency will use new methodology tying the salary level to the 35th percentile of earnings in the poorest Census region. The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters. For more information and to find exact legal definitions and language please see the Public Works Chapter of the California Labor Code. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you.

What Is Certified Payroll & How to Comply

Preventing certified payroll mistakes is always better than having to resolve them once payroll is posted and reports have been filed. The following tips can help you create an environment that limits errors and catches them early in the process when they are easier to resolve. Failing to stay on track with reporting can have serious consequences. For instance, if this report is not submitted, the awarding agency might withhold pay until all reports have been received.

Reports can be mailed to the United States Department of Labor Wage and Hour Division. There is currently no method for electronic submission of these forms. If you use a payroll company, they may be able to submit forms on your behalf. To make your life easier, reduce the risk of mistakes and ensure you never lose important data, use an automated payroll solution. Even though you will have to invest in it, it will speed up your process and increase accuracy.

What is Certified Payroll in Construction?

See paragraph on “Contractors who pay no fringe benefits” for computation of overtime rate. It is especially true of a certified payroll report for public works and federally-funded construction projects. People who work in construction and repair must know how to submit a certified payroll report. The DOL requires this type of documents to ensure that contractors and subcontractors pay employees fairly who work on federally-funded construction projects and public works. As we mentioned earlier, the point of certified payroll is to ensure that you are paying employees the prevailing wage for their job. The Department of Labor requires all federal or federally funded construction-type contractors and subcontractors to submit weekly payroll through a Form WH-347.

The form allows you to provide certain information if you intend to use your certified payroll record as your only payroll record. Payroll number refers to how many weeks you’ve filed payroll since you began working on your government contract. To avoid this issue, businesses should consider using truly single HR and payroll software that allows for the seamless flow of data between tools.