Certified Payroll

Certified Payroll

What is a certified payroll? A certified payroll is usually required in government projects, this payroll report is signed and certifies that the wages and hours were actually worked on that particular job, location, etc.

Companies that contract to work on federal government construction projects must comply with the Davis-Bacon and Related Acts, legislation that requires payment of local prevailing wage rates. The certified payroll, a requirement included in most federal construction contracts, confirms compliance with Davis-Bacon. Small businesses, including those that sign on to federal projects as subcontractors, have the same legal responsibility as larger businesses to prepare and submit certified payroll reports. Davis-Bacon covers projects exceeding $2,000 -- a threshold that includes many small businesses -- for federal and federally assisted contracts, such as those that receive grants or loans and which may operate under “related acts.” The detailed certified payroll report justifies inclusion in federal projects that require small business participation. The elements required for the certified payroll, such as prevailing wage rates, help simplify the bidding process for small businesses. Compliance with the certified payroll requirement can affect your business's future opportunities for local federal projects, and federal agencies provide assistance that is especially helpful for small and inexperienced businesses. Other federal legislation details the preparation and submission of payroll reports over the life of a project. The payroll on affected federal projects must include several elements to be considered certified:

Certified Payroll - AMS Staff Leasing