State by State: Understand Certified Payroll Reporting

Like all the states on this list, New Jersey believes its skilled laborers and workers deserve to be paid fairly for their time. That’s why they have their own “little Davis-Bacon laws” in place to “[safeguard] workers’ efficiency and general well-being.” Prevailing wages do just that.

Established by the New Jersey Prevailing Wage Act, these laws and regulations set a standard of pay and fringe benefits for workers engaged in public works projects. They are overseen and governed by the New Jersey Department of Labor and the Commissioner of Labor and Workforce Development. Typically, the prevailing wage rate in New Jersey is determined by factors like the cost of living, collective bargaining agreements, and other local labor market conditions, such as the availability of skilled workers.

In order to verify, or certify, that prevailing wage is being paid, contractors or subcontractors who must pay prevailing wage must also submit certified payroll reports. And, as of August 15, 2024, certified payroll reporting in New Jersey is changing.

Starting in August, all contractors performing public works projects will be required to submit certified payroll reports via the New Jersey Wage Hub, or NJ Wage Hub. This shift is meant to support a variety of contractors, contracting agencies, and employers, streamlining operations and promoting fair wage practices.

Regardless of where and how the certified payroll reports are submitted, there are a handful of reports to be mindful of as contractors and subcontractors prepare to submit their documentation: the New Jersey Department of Labor Certification for Public Works Projects form, the New Jersey Contractor Certified Payroll form, the New Jersey Economic Development Authority form, and the federal WH-347 form, among others. Being aware of these common forms and requirements will make filing a breeze.

As a contractor, subcontractor, or skilled laborer in Washington State, one phase you’ll likely hear repeatedly is “prevailing wage.” These laws ensure fair and competitive wages for workers and laborers on public works projects, which are projects funded in part or in entirety by state money.

Like the federal Davis-Bacon Act, Washington State’s prevailing wage laws dictate how workers should be compensated, both in terms of pay and in terms of fringe benefits. The Prevailing Wages on Public Works Act protects workers from making “substandard” earnings and “preserve local wage standards.”

When considering prevailing wage and certified payroll reporting in Washington State, it’s important to understand the definition of public works projects, which is a “project funded by any public dollars” or “a private construction project resulting from government agency agreement(s) to rent, lease, or purchase.”

These projects — and their associated prevailing wages — are monitored by the Washington State Department of Labor and Industries, which also sets the prevailing wage rates using surveys of contractors and labor unions.

After paying the prevailing wage rate, contractors and subcontractors must submit certified payroll reports to verify that they’ve met their legal obligations. These reports, which are typically submitted online, track contractor or subcontractor data, as well as employee data, including name, address, trade, hours worked, and deductions.

In Washington, there are a handful of certified payroll reports to know, including the Washington Department of Labor and Industries XML File, the Washington Department of Labor Certified Payroll Report (F700-065-000), the Washington Department of Transportation Monthly Employment Utilization Report, and the Washington Statement of Apprentice/Journeyman Participation (EAS 010103), among others.

By utilizing software like Certified Payroll Reporting, you can better track, monitor, and submit your certified payroll reports, streamlining the process and improving compliance.

The Land of Lincoln, or Illinois, has relatively complex prevailing wage and certified payroll reporting requirements, making it particularly important to understand the details of the requirements and potential violations.

In Illinois, the prevailing wage is governed by two separate laws, the Prevailing Wage Act, which governs construction rates, and the Illinois Procurement Code, which governs other types of labor, including janitorial cleaning services, window cleaning services, food services, security services, and printing rates. Among other things, these laws dictate what skilled laborers should be paid for their work on public works projects.

In this case, public works projects are those that are “funded or financed in whole or in part with bonds, grants, loans or other funds made available by or through the State or any of its political subdivisions, or undertaken by an institution supported in whole or in part by public funds.”

Prevailing wage in Illinois is determined by the county, or locality, and the type of labor being done; a carpenter, for example, is paid a different prevailing wage rate than a painter.

Public bodies in each county or locality are responsible for notifying contractors and subcontractors of changes to the prevailing wage rate, making it slightly easier to track than in other states.

And, of course, once the prevailing wage rate has been paid, certified payroll reporting must be conducted. The primary form for contractors and subcontractors to be aware of when it comes to certified payroll reporting in Illinois is the Illinois Department of Labor Certified Transcript of Payroll. This transcript, or form, requests information on the project, the contractors or subcontractor, and the worker, including their hours worked and hourly wage rate.