✔️You Need To Know The Davis-Bacon Certified Payroll Requirements

Dive into Davis-Bacon Certified Payroll Requirements: So, your company garnered a federally funded construction contract! Now what?

As you wait excitedly for that great project to get underway, there is a lot of paperwork and regulations to sift through. Let’s take a look at some of the rules the US Department of Labor (DOL) directs all contractors and subcontractors on federal projects to follow under the Davis Bacon and Related Acts (DBA).

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Supply Information for Davis-Bacon Certified Payroll

You may know the main focus of the DBA is to ensure workers are paid appropriate wages. But did you know that to determine these wage rates, the DOL relies on survey data learned from contractors like you via an online WD-10 form?

Contractors aren’t required to submit feedback, but it is encouraged so the DOL can gain valuable information to help them narrow down local prevailing wage rates.

Peruse Requirements for Davis-Bacon Certified Payroll

Using these findings, the DOL creates a Wage Determination (WD) – a set of wages, fringe benefits, and work rules for specific labor categories in a particular locality. The WD is usually sent to contractors as part of the awarded project contract, but you can follow updates or changes or seek more information here:

Notify Crews

The DBA requires all contractors to post a copy of the WD, along with a WH-1321 Davis-Bacon Poster, at all applicable job sites so employees are aware of their rights. Both forms must be hung in a conspicuous place and accessible to all workers.

Clarify Rates

You should examine the WD carefully to choose the correct labor classifications and pay rates of your employees. If you don’t find an appropriate classification for the work being done, you should submit a SF-1444 Request for Authorization of Additional Classification and Rate, often called a Conformance Request.

Approach your contracting agency for guidance on how to pay your employees until the DOL responds to your SF-1444.  Recently DBA administrators have tried to reduce conformance requests by allowing the DOL to identify and list fringes and pay rates for certain classifications in the absence of survey data. But clarification can be requested at any time.

Detail What You Pay

Going hand-in-hand with WD wages are fringe benefits. Not only are you required to pay a certain hourly rate to your workers, but you must also allot a set amount of fringes. This can be paid in cash to the employee, granted towards plans like employer 401k matches, or distributed on the employee’s behalf to a bona fide fringe benefit plan like the one eBacon created.

The contracting agency often requires Fringe Benefit Statements detailing all employer fringe contributions for each employee on the project.

Also required is a Deduction Authorization Form for each employee stating that they are aware of legal deductions taken from their pay. These could include child support, court-ordered garnishments, employee-paid insurance premiums, or other allowable deductions set forth in the WD.

Apprenticeship Rules for Davis-Bacon Certified Payroll

If you use apprentices, you must remember to supply evidence of registration with an approved apprenticeship program – such as an apprentice level certificate – and monitor the WD allowable ratio of apprentices to journeyman laborers on that jobsite.

Submit Payroll

Once all required background forms are completed and your jobs have the correct WD rates attached, it’s time to process your weekly payroll. Payroll numbers are needed to populate a submittable WH-347 or an uploadable file stating earnings and hourly totals. A few things must be present:

• Employee’s full name
• Identifying number (usually last four digits of SSN)
• Each classification assigned to each laborer
• Hours and pay for each classification

Retain Records

Not only should every weekly report be saved for at least 3 years after the final project work is completed, but the DOL says you must also save the employee’s last known telephone number and email address.

If you use subcontractors, you must enforce the same rules for them and monitor their submissions. While there could be variations depending on the agency, all paperwork is generally submitted up the chain from the subcontractor to contractor, to project owner or contracting agency, to a labor compliance agency or DOL.

Not following the regulations above could mean additional stress and time to process restitution payments, fines, and penalties from the DOL, or debarment from future DBA projects. It’s in your best interest to learn all you can about DBA laws and partner with a payroll company like eBacon that is dedicated to your compliance and allows you to easily print the mandatory reports discussed.

Become Davis-Bacon Certified Payroll Compliant Today!

For more information about Davis-Bacon Certified Payroll visit the following links:

• https://www.dol.gov/sites/dolgov/files/WHD/davis-bacon/DBAOverview-2021.pdf
• https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/Tab9.pdf
• https://www.dol.gov/sites/dolgov/files/WHD/davis-bacon/DBRA-FinalRuleWebinarPowerPoint.pdf

The material presented here is educational in nature and is not intended to be, nor should be relied upon, as legal or financial advice. Please consult with an attorney or financial professional for advice.