How to Get Certified Payroll Right

Thursday, April 04, 2019
How to Get Certified Payroll Right

Understanding state and federal laws around "prevailing wages" is not an easy undertaking. But it's critical for contractors working on public projects.

Violations of these laws can lead to expensive consequences.

Last year, a San Diego-based general contractor agreed to pay $1.1 million in wage and penalty assessments for violations committed by a subcontractor accused of maintaining false payroll records to cover up its failure to pay 103 workers the prevailing wage and fringe benefits they were entitled to, according to a press release from the California Department of Industrial Relations.

The department oversees the state's prevailing wage laws, which vary depending on the geographic location, the job classification and the type of project.

The laws are designed to ensure that public work projects don't drive down prevailing wages as the result of low bidders using underpaid workers. State officials in 2014 launched a public awareness campaign to make workers aware of their rights.

Failure to comply can result in criminal prosecution in some cases.

Getting it right is not something government contractors can afford to take for granted. Companies facing an enforcement investigation can expect to undergo a payroll audit of up three years worth of records. But it's not enough to keep up with the prevailing wages applicable to a particular project.

Reporting Requirements for Government Construction

The law also imposes detailed reporting of all employees working under a government contract or subcontract.

This reporting, known as "certified payroll" is an important part of complying with the state and federal laws around fair wages for government contract work.

Our whitepaper, "Certified Payroll Reporting Best Practices for Construction Firms," traces the roots of these laws and outlines the best way to stay in compliance, without spending all of your time on paperwork and data entry.

Highlights of this Whitepaper

Among other guidelines, our whitepaper can help you work through the steps for creating the best practices to ensure that your certified payroll reporting is compliant, cost-effective and error-free.

Here are a few of the questions addressed:

  • What is required for "certified payroll" reporting?
  • Who is covered under the law?
  • What is the most effective way of capturing the required data?
  • How can software streamline compliance reporting?

Click on the link below to download the whitepaper and learn how you can take the first steps toward hassle-free certified payroll reporting.

The Right Partner for Certified Payroll Reporting

At SBS Payroll, we have decades of experience in handling certified payroll reporting for our clients. Combining deep expertise with state-of-the-art software, we can help you slash the work of producing certified payroll reports, with integrated time and attendance, cloud HCM and streamlined and error-free reporting processes.

Our clients also have access to additional solutions provided by our sister companies Time Rack and Payroll Tax Management.


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