In the construction industry, contractors often need to report payroll to meet their contractual requirements. Depending on the project, a contractor usually reports Certified Payroll and/or Wrap-Up Payroll. Understanding the differences between these payrolls is important for compliance and efficient project management.
Certified Payroll
Certified Payroll for construction workers is a detailed payroll report the uses the federal form WH-347. The requirement applies at the company level, not the individual employee.
This form ensures compliance with the Davis-Bacon Act, which mandates workers on federally funded construction projects receive prevailing wages. Prevailing wages include fridge benefits (ex. health insurance, 401K benefits, etc.) and considers the local economy, ensuring workers are being paid fairly.
The WH-347 form is submitted weekly and includes employees:
A company authority must certify the accuracy of this information by a signed statement of compliance. Falsifying data can lead to criminal prosecution.
Wrap-Up Payroll
Wrap-Up Payroll, also known as Reportable Payroll, pertains to the information a company reports to its Workers' Compensation Carrier in the state where the work is performed. Unlike Certified Payroll, it doesn't require individual employee details.
Instead, a contractor puts in the company’s information for the project:
This information should exclude fringe benefits any overtime pay. This data is submitted to the project’s Wrap-Up Administrator who manages the project. Accurate reporting is vital, as errors can lead to accounting discrepancies and affect the carrier's reports to bureaus, which ultimately impacts a contractor’s Experience Modification Rate (EMR).
If you are working on a project with Wrap Program and are uncertain about which type of payroll to report, reach out to that projects Wrap Administrator for clarification. If you are working on a project and TSIB is your Wrap Administrator, contact us today for assistance!
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