A key obligation of being in the construction industry, whether you interact with contractors or subcontractors on federally sponsored building projects, is to provide certified payroll records on a weekly basis. This will guarantee that the workers receive reasonable compensation, and your company follows the prevailing wage rates for the state or area where the project is.
But what exactly is certified payroll and how is it different from regular payroll?
The short answer to this is that certified payroll requires a statement of compliance, and failure to comply entails severe penalties. It is a weekly payroll used by contractors working on government-funded construction projects. The payroll services company hired or a person assigned will sign the document, attesting that they have provided the information truthfully and accurately to the best of their ability.
Additionally, it is typical for certified payroll construction projects to have a prevailing wage rate, which includes fringe benefits, that is exclusive to that project. This indicates that there is a set minimum that an individual can earn while carrying out certain work on a construction site. Restitution is due to the person who performed the job on this specific project if they were underpaid for it.
Prevailing wage rates vary per state or county, or the location where the construction project takes place. There is advice for construction projects at the local, state, and federal levels. Make sure you are aware of these requirements and standards.
