PAYROLL & CERTIFIED PAYROLL AUDITS

The management of large construction projects from the public agency perspective requires oversight of multiple levels – from prime contractors to subcontractors, to second tier subcontractors, and so on. Ensuring that each level maintains compliance can be a nightmare. On top of that, some public agencies may also be tasked with tracking and reporting workforce demographics, such as ethnicity, gender, and veteran status.

Contractors must submit certified weekly payrolls in a form that will satisfy the DBRA regulations at 29 C.F.R. Parts 3 and 5. The DOL has created a certified payroll form, WH-347, which satisfies the requirements of the certified payroll regulations. The bid specifications and the federal contracts are required to contain specific provisions identifying the prevailing wage requirements for the contract so that bidders will know in advance what wages will be required on a DBRA-covered project. 

Failure to properly classify employees is a common error. The contractor cannot classify a pipelayer as a laborer to avoid paying the higher pipelayer prevailing wage. Each employee must be accurately classified and paid according to the prevailing wage for their job classification. The use of the “laborer” classification is always closely scrutinized by DOL and is strongly disfavored. Additionally, contractors must use care not to classify workers as an apprentice or helper to pay them a lower prevailing wage.

Another common problem is failing to pay the fringe benefit equivalent if the actual fringe benefits provided by the employer are not of a value equal to the fringe benefit required in the prevailing wage. Failing to submit the certified payroll as required can also subject a contractor to liability and is one of the most common errors by companies working on federal contracts, particularly subcontractors.

C&T can make sure that your agency stays in compliance with federal and state law. We will ensure that a WDOL or CWSRF audit is good and that your funding remains intact.