Certified Payroll – Are you sure what you are submitting will not be rejected?
Does your firm’s contracts fall under prevailing wage laws? ILSMD would like to share common mistakes payroll departments endure. This is especially problematic small businesses, not submitting compliant payroll for a prevailing wage audit.
Most companies use form WH-347 for certified payroll. This form can be found in a google search or directly on the Department of Labor Website under the Wage and Hour Division, Davis-Bacon and Related Acts | U.S. Department of Labor (dol.gov). Here you will also find easy to follow steps and guidelines on what makes Certified payroll submissions compliant. Want to test your payroll skills? There is also a quick certified payroll test at the bottom of the page with an answer sheet to check your skills. Certified_Payroll_Exercise_ver_Sept2011.pdf (dol.gov)
I know, the word “Rejected” sounds a bit harsh, but it let a company’s payroll department know their payroll did not make it to the audit process. This usually happens because of minor mistakes that are easily checked and corrected prior to submission for audit. These common mistakes are usually:
- Payroll number sequence incorrect. Example: Payroll from the previous week displayed Week #10 week ending June 6th. The newly submitted payroll displays Week #12 week ending June 13th. I believe we are missing and #11; how but you?
- Week ending date not matching the week being submitting. Example: payroll is submitted for the week of Monday June 7th through Sunday June 13th, but the payroll week ending is June 20th. This oversight is especially important when there are holidays during a specific week. I am sure workers would appreciate their holiday pay if it were missed.
- Fringe Cash or Non- Cash – one the most common mistake is not checking the box. We need to know how your company allocates Fringe Benefits Payments. Do you pay your workers in Non-Cash Benefits to Bonafede benefits package or is Cash and on their check? Auditors need to know before they can proceed and btw, circles are accepted. So put a big one around how you pay your Fringe Benefits if you want to.
- Where is your John Hancock? – Payroll must include the Printed Name and signature of the submitter of the payroll for it to be deemed “Certified”. This is a great opportunity to show off your penmanship.
Get it moving! – By taking a quick moment to double check your payroll, auditors can begin the process of cataloging your payroll and moving on to the audit step.