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Typically, Wrap-Up programs require subcontractors to submit payroll for work done on a project site. Below are 4 tips on submitting payroll on a Wrap-Up!
1. Payroll Reports
Each enrolled party is generally required to submit payroll and work hour information via their Contractor Portal or payroll form, for work done on the project site. If your company has multiple contracts on the project, a separate payroll report is required for each contract. Certified Payroll Reports cannot be accepted.
2. Payroll Submission
After the month has ended, make sure your company submits your payroll report as soon as possible. Double check that the submitted payroll covers all the days in the month starting from the date your CIP coverage began. Also include weekends, holidays, and days your company was not on the project site. If no work was performed for a particular month, submit a payroll report with zeros.
3. Overtime Pay
Wrap-Up payroll reports generally include unburdened straight time payroll only. This is known as the Reportable or Limited payroll and does not include any overtime pay. Overtime pay, if any, should be reported in the Gross payroll amount. Monopolistic states and Pennsylvania, Delaware, Nevada, and Utah require the reporting of the entire unburdened overtime payroll as Reportable payroll.
If you are unsure whether to include the unburdened overtime portion as Reportable payroll, please consult with the Workers’ Compensation Bureau in the state where the project is located.
4. Payroll Cap
New York State (and a few other states) enacted a law that limits the amount of payroll reported for Workers’ Compensation premium purposes for eligible construction classification codes. A payroll cap is applied to the actual weekly payroll per employee. Always refer to your CIP manual regarding how payroll is to be reported for your project and take this limitation into account when reporting payroll to the CIP, if needed.
The limitation is subject to change annually. If you have any questions regarding the cap, please contact either the Workers’ Compensation Bureau in the state where the project is located or your insurance broker.
If you have any additional questions regarding your payroll submission, CIP, or other insurance policies, TSIB is ready to help. You can call us at 201-267-7500.
