top of page
  • Writer's pictureAdmin

What is a Certified Payroll Report?

Updated: Apr 21

Certified Payroll Report documents play a large role for contractors engaged in public works projects. These reports hold key data to help guarantee that employees working on state and/or federally funded projects receive the correct compensation as per the prevailing wage laws and project requirements.


This weekly required document has columns to outline project information, company information, employee full names, addresses, socials, hours worked per classification per day, hourly rates, gross pay, paystub taxes and deductions, net pay, and the check number plus date.


Each Certified Payroll Report is accompanied with a Statement of Compliance where an authorized signatory of the company is required to sign and declare under penalty and perjury that the information being reported on the Certified Payroll Report is true and correct.


Most classifications will need to produce a Statement of Non Performance for weeks of no work on the project that fall between the first week on site and the last week on site. This is a simple document again needing to be signed by an authorized signatory of the company declaring under penalty and perjury that the information on the Statement of Non Performance Report is true and correct.


In California, federally funded projects fall under the purview of the Davis Bacon Act and require the WH347 CPR form format while state funded projects requirements fall under the CA Labor Codes and require the A1-131 CPR form format.


Knowing California's Labor Codes is a must for CA state funded public works project compliance. Section 1776 holds importance when it comes to Certified Payroll Reports. This section requires employers working on projects to maintain payroll records that clearly indicate adherence, to prevailing wage rates set by the Director of the Department of Industrial Relations based on the workers job type or craft. Keeping your records in an organized manner is crucial in case of records requests where you have 10 days to turn over the documents with late penalties for late submission. Employers should keep records for no less than 3 years time in California.


The Role of California's DIR:


The California Department of Industrial Relations (DIR) plays a large role in full or partially CA state funded public works projects. The DIR is responsible for establishing prevailing wage rates making these determinations accessible to the public. Additionally the DIR provides a platform for filing and accessing Certified Payroll Report's information to promote transparency, this process is called eCPR. eCPR is required on most CA state projects and should be uploaded no later than every 30 days. In recent years, the DIR has also announced it's part in the Labor Enforcement Task Force (LETF) as a way to monitor and ensure employers are meeting their obligations and abiding by the law.


The DLSE & Public Works Manual:


The Division of Labor Standards Enforcement (DLSE) are the state investigators who also play a key role in the enforcement of compliance. Their Public Works Manual is available to read on the DIR website and serves as a resource for individuals involved in public works projects in California. This manual offers additional guidance on adhering to California Labor Code requirements covering topics such as Certified Payroll Record requirements, submission requirements, and the consequences for failing to meet prevailing wage standards.


Filing Certified Payroll Reports:


Certified Payroll Reports are not to be confused with eCPR. These are two separate documents, requirements, and processes. Each project is different in regards to Certified Payroll submission. Some prime contractors may require wet signed packets to be mailed to their office on a weekly, biweekly, or monthly basis while other primes may require use of a CPR system (such as LCPTracker, Elations, eMars, ect...), upload to a shared digital folder, or emailed packets to a specific point person or team. Identifying the submission requirements is one of the very first steps that should be taken when awarded a public works project.


In California the process of submitting CPR information on the DIR website has been made efficient, with their Electronic Certified Payroll Reporting system (eCPR). When eCPR is required, contractors and subcontractors are to enter or upload their certified payroll records to this system no later than every 30 days making it easier for the public to access and for compliance officers to review. Be sure to save your confirmation of upload page and the eCPR record itself in your project file for future reference and records requests.


Dealing with Compliance Challenges and Solutions:


While the necessity of submitting certified payroll reports is typically outlined in project contracts and is straightforward, the actual procedure can be challenging. This includes understanding and selecting the correct employee classifications, calculating and paying the proper prevailing wage rates for each worker, monitoring overtime provisions, carefully inputting all of the required data onto the forms without error, and submitting accordingly.


The Significance of Adhering to Regulations:


Failing to comply with the project requirements and laws could potentially lead to consequences such as penalties and fines, or even being debarred from future projects. Timely and accurate submission of certified payroll reports and eCPR can greatly influence a company's reputation in the industry making you an easier and more reliable company to work with.


In summary certified payroll reports are one of the most important documents when working on Public Works projects while also ensuring + transparency by reporting true and accurate data applicable to that week of work.



17 views0 comments

Comments


Commenting has been turned off.
Prevailing Wisdom Logo Black Background.png
bottom of page