Certified Payroll

Definition

Certified payroll is a set of specially formatted payroll reports that must be submitted on a weekly basis by a contractor or subcontractor performing work on any type of federal and/or state-funded construction project with a value in excess of $2,000.

Purpose

The purpose of certified payroll is to ensure compliance with prevailing wage laws and verify that workers are being paid appropriately according to government standards.

Examples of Use

1. Government Projects: Contractors on public construction projects submit certified payroll reports to demonstrate compliance with wage requirements.
2. Labor Compliance: Using certified payroll to document and verify that all employees are paid the correct prevailing wage rates.
3. Audit Preparation: Maintaining certified payroll records for review during government audits or inspections.

Related Terms

• Prevailing Wage: The standard wage rate set by government agencies for specific types of work in particular geographic areas.
• Davis-Bacon Act: A federal law requiring payment of prevailing wages on public works projects.
• Labor Compliance Officer: An individual responsible for ensuring adherence to labor laws and regulations on construction sites.

Notes

• Certified payroll reports must include detailed information such as employee names, job classifications, hours worked, and wages paid.
• Failure to submit accurate certified payroll can result in penalties and disqualification from future government contracts.