CERTIFIED PAYROLLS - Florida Department of … · •PRIME SUBMITS ALL CERTIFIED PAYROLLS TO THE PROJECT RCS. •Collects from its subcontractors •PRIME IS RESPONSIBLE FOR PAYROLL

CERTIFIED PAYROLLS

USDOL regulations in 29 CFR 5.5

FHWA 1273 – IV. DBRA Provisions

Specification 7-16 Prevailing Wages

Compliance Manual, Chapter 6

Cheryl Catron

Florida Department of Transportation

CERTIFIED PAYROLLS – Davis Bacon and Related Acts

The “government contract acts” • Davis Bacon Act• Copeland Act• Fair Labor Standards Act• Contract Work Hours and Safety Standards Act

Regulate

• Payment of wages• Record keeping and reporting• Overtime pay



FDOT contracts which require compliance with the “government contract acts” include:

• Special Provision Sub-article 7-1.1 which invokesFHWA 1273, May 1, 2012 -- included in its

entirety• And Sub-article 7-16, Wage Rates for Federal Aid

Projects



THIS TRAINING ON CERTIFIED PAYROLLS IS AN OVERVIEW.

NOT A “HOW TO” FOR PAYROLL COMPLETION.

THIS TRAINING IS TO HELP THOSE WHOREVIEW SUBMITTED CERTIFIED PAYROLLS.


LOCALAGENCYPROJECTS


We will go over various aspects of the requirement.

• What it means for us

• Prevailing Wages

• Tracking and reviewing payrolls

• Noncompliance

• Labor Interviews


CERTIFIED PAYROLLS – FHWA 1273

REQUIREMENT APPLIES TO:

• All federally funded construction projects of $2,000 or more

• Projects located within the right-of-way of a roadway that is functionally classified as a Federal-aid highway• Excludes roadways functionally classified as local roads or rural minor collectors.

• FOR LAP – FUNDING SOURCE CAN DICTATE IF DBRAREQUIREMENTS APPLY, even if it is a local road

• For LAP, generally, only Recreational Trail Projects/RTP’s are exempt • The prime and every subcontractor of every tier or level

• Regardless of subcontract dollar amount


CERTIFIED PAYROLLS


Required for all laborers and mechanics working on the job site.

Does not apply to Supervisors or Professionals.

CERTIFIED PAYROLLSWHAT IT MEANS TO CONTRACTORS:

• WAGES• Prevailing Wage Rates apply (minimum pay rates) • For all laborers and mechanics • Apply to prime, all subs, temporary agencies and operators under rental agreement• No matter the tier or the dollar amount of the subcontract or agreement

• PAY WEEKLY• Wages are paid weekly to all laborers and mechanics

• REPORT WEEKLY• Certified Payrolls are Submitted weekly, 7 days from pay date

• NO WORK payrolls are not required (See Compliance Manual 6.5.2) • PAYROLLS ARE CERTIFIED

• Contractors report AND certify by signature• LABOR INTERVIEWS

• On-Site workers and truckers may be interviewed by Project Administrative staff/RCS at any time.


CERTIFIED PAYROLLS

WHAT IT MEANS TO THE PRIME:

• PRIME SUBMITS ALL CERTIFIED PAYROLLS TO THE PROJECT RCS.

•Collects from its subcontractors

• PRIME IS RESPONSIBLE FOR PAYROLL SUBMISSIONS.

• Timely and Accurate

• Communication is between PRIME and RCS.

• Violations and Notices are issued to the Prime.

• ALL NEW CLASSIFICATION REQUESTS ARE SUBMITTED BY PRIME.


CERTIFIED PAYROLLS

WHAT THIS MEANS FOR RCS:

• KEEP WAGE DECISION AT HAND & NEW CLASSIFICATIONS

• TRACK PAYROLLS FOR TIMELY RECEIPT• Ask prime for pay week and pay dates for prime and all subs • Notify prime when late – Send NNC -- Don’t Wait!

• REVIEW PAYROLLS PROMPTLY• Mark receipt date, review date and initials of RCS• Check over first payrolls EXTRA CAREFULLY.• Issue NNC or Payroll Violation as necessary

• LABOR INTERVIEWS are performed


RECEIVED

NOV 1-2016

REVIEWED 11/1/16CC

M-F Pay WeekPay Day Next Wed

CERTIFIED PAYROLLS – RECAP so far

WHAT’S THE NEXT STEP?

RCS cannot read the blurry payroll.

Contact the prime to send clear copy.

RCS does not see the Superintendent on payrolls.

Not required.

RCS asks for pay date information. Learns sub pays bi-weekly.

Required to pay weekly.


CERTIFIED PAYROLLS -- RECAP

SEE,

YOU KNOW

A LOT

ALREADY!!


CERTIFIED PAYROLLS –Resident Compliance Specialist / RCS

•Prime submits certified payrolls.

•RCS tracks their receipt.

•RCS reviews each certified payroll.

•Compares payroll with Daily Work Report



Payroll Tracking Log (example)

RCS – CREATE A SYSTEM OR TRACKING LOG FOR PAYROLLS. ASK CHERYL FOR SAMPLE EXCEL LOG.

PREVAILING WAGES – Specification 7-16

7-16 Wage Rates for Federal-Aid Projects.

For this Contract, payment of predetermined minimum wages applies.

The U.S. Department of Labor (USDOL) Wage Rates applicable to this Contract are listed in table below, as modified up through ten days prior to the opening of bids.


PREVAILING WAGES – Compliance Manual 6.2

• These are minimum hourly rates• Classifications, Wages and Fringe Benefits• County• Type – Highway, Heavy, Building, Residential• Per the prime’s contract with Local Agency

• SPECIFICATION 7-16


WAGE RATE DECISIONS – For LAP Projects

DO THE WAGE RATES IN THE BID DOCS EVER CHANGE?

• Table or decision remains the same • Based on County and Type

• Check the Revision or modification date that applies.

• Locks in 10 days before bid letting/bid opening date.

• If award date is 90 days from bid open date, the current modification date applies.


CERTIFIED PAYROLLS – For LAP Projects

We have discussed• What it means for us


Now we can discuss • Tracking and reviewing payrolls• Reminder – What is required?



FHWA 1273, IV. DBRA Provisions, 1. Minimum Wages --

a. All laborers and mechanicsEmployed or working upon the site of work,Will be paid unconditionally andNot less than once a week, andWithout subsequent deduction or rebate on any account (except such payroll deductions as are permitted by the Secretary of Labor under the Copeland Act (29 CFR part 3)),The full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of paymentComputed at rates not less than those contained in the wage determination of the Secretary of Labor……..,Regardless of any contractual agreement alleged between contractor and worker.


CERTIFIED PAYROLLS – FORMS or FORMAT

• Two parts to Certified Payrolls• Statement of Compliance (Certifies)• Wage and Hour Record (Payroll)

• WH-347 form or FDOT # 700-010-69• Instructions in Compliance Manual 6.5.15

• Can use other format – Same info.


As Resident Compliance Specialists

LET’S REVIEW THE FDOT PAYROLL FORM

STARTING WITH THE

STATEMENT OF COMPLIANCE.

Signature PAGE CERTIFIES THE PAYROLL

PAYROLL - REPORTING REQUIREMENTS –FHWA 1273 IV DBRA, 3 Payrolls and basic records, b(2)

Compliance Manual 6.5.15 -- Payroll form Instructions


FDOTPAYROLL FORM # 700-010-69

STATEMENT OF

COMPLIANCE

Review SampleProvided.

See Errors?

FICTITIOUS SAMPLE - FOR TRAINING PURPOSES ONLY



Payroll form Instructions to Contractors, excerpt from Compliance Manual 6.5.15 --

FEDERAL #

INCLUDES YEAR




STATEMENT OF COMPLIANCE

Section (1) Description of Deductions – “SEE ATTACHED PAYROLL” or similar, is recommendedSection (2)Section (3)Section (4) (a) WHERE FRINGE BENEFITS ARE PAID TO APPROVED PLANS, FUNDS OR PROGRAMSSection (4) (b) WHERE FRINGE BENEFITS ARE PAID IN CASHSection (4) (c) EXCEPTIONS: List CRAFT and EXPLANATIONREMARKSNAME AND TITLE – Same person listed as Signatory on first line

SIGNATURE – MUST BE ACTUAL SIGNATURE or ENCRYPTED DIGITAL SIGNATURE




STATEMENT OF COMPLIANCE

SIGNATURE – MUST BE ACTUAL SIGNATURE or ENCRYPTED DIGITAL SIGNATURE

SAMPLE:


LET’S REVIEW THE FDOT PAYROLL FORM

WAGE AND HOUR RECORD

KEEP IN MIND THE REQUIREMENTS FOR

REPORTING WAGES AS FOLLOWS.

PAYROLL – WAGE AND HOUR RECORD 700-010-69


PAYROLL REPORTING REQUIREMENTS – FHWA 1273 Section IV DBRA, #3- Payrolls and basic records, b.(1)

Wage and Hour Record

1. EMPLOYEE NAME and ID #2. CORRECT CLASSIFICATION3. DAILY AND WEEKLY NUMBER OF HOURS WORKED ON PROJECT4. HOURLY RATES OF CASH WAGES PAID & FRINGE BENEFITS5. PROJECT GROSS WAGES6. WEEKLY GROSS WAGES7. DEDUCTIONS8. ACTUAL OR NET WAGES PAID


PAYROLL – WAGE AND HOUR RECORD – Fictitious Sample


PAYROLL REPORTING REQUIREMENTS – FHWA 1273 IV DBRA, 3 Payrolls and basic records, b(1)

Wage and Hour Record - Header

• Review project and payroll information in the top, header section.• Make sure all necessary entries are completed.• Is it all Accurate?• Federal project numbers (not Local Agency project numbers)• All header information stays the same/template.• Payroll number and week ending date updates for each payroll.

• Final payroll must be marked as FINAL.


PAYROLL REPORTING REQUIREMENTS – FHWA 1273 IV DBRA, 3 Payrolls and basic records, b(1)

Wage and Hour Record – Columns of Payroll Data

Notice the Column Numbers (1), (2), (3), etc.Review each column and line entry.Race and Gender is not required but preferred by FDOT.Must show Project Gross and Weekly Gross – even if the same.FICA deduction (Social Security and Medicare, employee deduction)Withholding tax, as applies“Other” deductions – Must be named on column or Deduction Sheet


CERTIFIED PAYROLL – DEDUCTION RECORD

HEADER INFORMATION SAME AS WAGE AND HOUR RECORD.

COLUMN ABBREVIATIONS SHOULD BE CLEAR – ASK PRIME IF YOU DON’T KNOW.

DEDUCTION RECORD IS OPTIONAL. CONTRACTORS INCLUDE IT AS NEEDED.


CERTIFIED PAYROLL – FRINGE BENEFITS

HEADER INFORMATION SAME AS WAGE AND HOUR RECORD.

COLUMN ABBREVIATIONS SHOULD BE CLEAR – ASK PRIME IF YOU DON’T KNOW.

THIS FRINGE SHEET IS OPTIONAL. CONTRACTORS SUBMIT IF IT APPLIES.


PAYROLL REVIEW

CALCULATE -- Are Total Hours ACCURATE?COMPARE – Is prevailing wage minimum met?CALCULATE – Total Hours worked x Pay rate listed.

DO THE MATH!

COULD FIND SLIGHT ROUNDING DIFFERENCES.(Contractor can expand the column size in Excel.)


Classifications and Wages

Applicable Wage Rate Decision

Sample:ORANGE COUNTYHIGHWAY


Cash Rates FringesCARPENTER, INCLUDES FORM WORK $ 15.73 0.00

CEMENT MASON/CONCRETE FINISHER $ 12.95 0.31

LABORER: COMMON OR GENERAL $ 10.95 0.00

General Decision Number: FL160223 04/15/2016Construction Type: HighwayCounty: Orange County in Florida

$ 12.95+ .31

$ 13.26

CERTIFIED PAYROLLS


Classifications

Fringe Benefits

Deductions


Classifications• Per wage table that applies•New Classification Request -Compliance Manual 6.3

• Applies to this project only• http:www.fdot.gov/construction/wage.shtm

• Classification Request Manager(WRD) –• Submitted by prime

• Discussed in Pre-Construction Conference Agenda


Classifications

• Each worker’s Classification should conform to the work performed.

• Laborer: Common/General • Not a catch-all

• Highest classification gets reported


Classifications on payrolls

If employee performs work in more than one classification:

•Separate line per classificationOR

•List Highest classification and payits pay rate for all hours worked.


Multiple ClassificationsSame worker - Separate lines for each Classification

SAME WEEKLYGROSS$ 410.00Should be listed.


Multiple ClassificationsOne line of payroll data, highest classification

RENEE worked as Laborer and as Cement Mason/ Concrete Finisher. Payroll can report her hours at the higher classification name and all hours worked show pay at the rate of the higher classification she worked that week, Cement Mason/ Concrete Finisher.


INDEPENDENT CONTRACTORFEID NUMBERSUBLET OR RENTAL AGREEMENTON ITS OWN PAYROLL -- NOT ON PRIME’S OR OTHER SUBS’ PAYROLLS – NAME, CLASSIFICATION, HOURS WORKED

WORKING OWNER20% EQUITY AND PARTICIPATE IN MANAGEMENTSUBMIT SIGNED LETTER STATING OWNERSHIPPAYROLLS – NAME, ID #, OWNER-541 EXCLUDED

WORKING FOREPERSONPAYROLL OF EMPLOYERFOREPERSON + CLASSIFICATION AND ALL OTHER PAYROLL DATA

FOR EXAMPLE: FOREMAN-CARPENTER

SOME PAYROLLS MAY SHOW THESE CLASSIFICATIONS

Signed letter submits WITH certified payroll. RCS keeps it on file.Applies for this project only.


Fringe Benefits – Compliance Manual 6.8

A Wage Determination/WD may contain two separate requirements for any individual classification:

Hourly Rate (Monetary Wage) andFringe Benefit (Payments for a bona fide fringe benefit) = Prevailing Wage for the Classification



Contractors can meet the WD requirement for a classification by combinations of cash and bona fide fringe benefits:

• Paying the sum in cash• Paying cash and paying or incurring cost for

bona fide fringe benefits• Any combination of the above



WHAT IS A FRINGE BENEFIT?

We all know what CASH WAGES are.BUT……



• Funded benefit plans• Insurance• Pension and 401k

• Unfunded benefit plans• Vacation, holidays and PTO



• Bona fide fringe benefits do not require USDOL approval.

• It’s not a fringe benefit if it can be taken away or if employee at some point may have to forfeit.



To satisfy Davis Bacon requirements

Deductions that are required by law cannot be counted as fringe,

such as Taxes, Social Security, Worker’s Compensation or Unemployment Compensation.



• Contractors may decide to pay lower cash wages and offset that by offering fringe benefits or higher fringes than are shown on the WD.

• If minimum monetary rate is reduced and fringes are used to meet the prevailing wage:• Employee’s approval is not required, but• Plan has to be communicated to employee in writing.

• Prime may have to show proof.


Fringe Benefits

Fringe Benefits are calculated based on 40 hr. work week x 52 weeks in the year = 2080 hours.


Fringe Benefits

Contractors are to provide those calculations for any employees that are paid cash and fringes to meet the minimum pay rate.

Sample Calculations in Compliance Manual 6.8.7


HELPFUL TOOLfrom D5

Fringe BenefitPayroll

Worksheet

EXCEL WORKSHEETASK Cheryl


What about Overtime Pay when fringes are used?

Fringe benefit $$ amount does not get calculated at time and a half.

Fringes get calculated for every hour worked, including OT hours.

AT STRAIGHT PAY, NOT TIME AND A HALF


OVERTIME PAY – Reminder

Fringe Benefit calculations are based on a 40 hour work week x 52 weeks = 2080 Hours/yr.

Overtime hours are not accounted for.

Fringe amounts owed may need to be paid in CASH.


Deduction Standards– Copeland Act

Deductions are allowed:

•As required by law (taxes, court orders)•As requested by employee (loans, etc.)

•NEED employee authorization•As benefits employee (union dues, etc.)•Not against any existing law


Deduction Standards

What is allowed or not?

Compliance Manual TABLE 6.5.3.1




IF YOU ARE UNFAMILIAR WITH A CLASSIFICATION, A FRINGE BENEFIT OR A DEDUCTION ON A PAYROLL,

CONTACT D5 LAP OVERSIGHT OR DCCM.


THERE’S MORE?????





Next up

• Noncompliance



NONCOMPLAINCE

Errors or OmissionsPayroll requirements


COMPLIANCE ENFORCEMENT

REQUIREMENTS APPLY

ACCOUNTABILITY

PRIME FULFILLS CONTRACT


Noncompliance CommunicationsTABLE 1.6.5.1 Compliance Manual

NOTICES OF NONCOMPLIANCE / NNC PAYROLL VIOLATION / PV

DEFICIENCY WARNING LETTER/ DWL

DEFICIENCY LETTER / DL – Withhold pay


LAP -- THINGS TO CONSIDER:

• COMPLIANCE MANUAL IS BASED ON GRADING SYSTEM –CONTRACTOR’S PAST PERFORMANCE RATING/CPPR

• NO CPPR ON LOCAL AGENCY PROJECTS• LOCAL AGENCIES / RCS DETERMINE THE NONCOMPLIANCE

PROCEDURES TO BE FOLLOWED.• INFORM AT PRE-CONSTRUCTION CONFERENCE• ADJUST COMMUNICATION SAMPLE LETTERS FOR LAP


LAP – MONTHLY COMPLIANCE UPDATE:

• RCS TO SEND MONTHLY NOTICE OF NONCOMPLIANCE • TO THE PRIME• COPY THE LOCAL AGENCY• COPY D5 LAP COMPLIANCE OVERSIGHT/CHERYL

• BEFORE ANY PAY APP IS PAID TO PRIME• LOCAL AGENCY – GET CONFIRMATION FROM RCS

ON THE PRIME’S STATUS OF COMPLIANCE


NOTICE OF NONCOMPLIANCE/NNC• RCS creates, signs and sends to prime. Copy D5

• Can be an email, NNC in subject line

• Errors on Statement of Compliance or Late Payrolls, send anytime

• Unresolved compliance issues send at end of month or before pay estimates• Bulletin Board out of compliance• Requested documents not submitted

• Resolution Due 7 business days after Issue Date

Signed and Sent 11/1/16;Due 7 business days after 11/1/16; Due date is:11/10/16


PAYROLL VIOLATION - FORM 700-010-59

• Violations on Wage and Hour Record• Due 20 Days from prime’s receipt date

• Day 1 is receipt date

• RCS creates and signs PA signs• Email it to Prime

• Copy D5 LAP Compliance Oversight/Cheryl


PAYROLL VIOLATION – FORM 700-010-59Page 2 of the form:

VIOLATION CODE 1 – TIME AND A HALF NOT PAID FOR OVERTIME HOURS WORKED

VIOLATION CODE 3 – IMPROPER CLASSIFICATIONVIOLATION CODE 4 – HOURLY RATE IS LESS THAN MINIMUM

RATE FOR THE CLASSIFICATION WORKEDVIOLATION CODE 5 – MATHEMATICAL ERRORS ON PAYROLLVIOLATION CODE 6 – UNAUTHORIZED DEDUCTIONSVIOLATION CODE 7 – OTHER, EXPLAIN IN COMMENT

SECTION OF FORM

Always include page 2. Do NOT send Labor Interview to prime.


RESOLUTION OF PAYROLL NNC or VIOLATION

SUPPLEMENTAL CERTIFIED PAYROLL

and

IF APPLICABLE, PROOF OF PAYMENT MADE AND RECEIVED BY EMPLOYEE.


WHAT IS A SUPPLEMENTAL CERTIFIED PAYROLL?

REQUIRED TO RESOLVE ALL PAYROLL VIOLATIONS.SUPPLEMENTS THE ORIGINAL PAYROLL (Both parts)

• LISTS CORRECTED INFORMATION• ADDITIONAL MONIES OWED• NEW STATEMENT OF COMPLIANCE

IS NOT SAME DATE AS ORIGINAL PAYROLL• FILE IT WITH ORIGINAL PAYROLL


No Response or ResolutionDEFICIENCY LETTER – Can withhold $$$$

• When Prime does not resolve NNC or PV• RCS prepares for Project Administrator/PA to issue• Sample communications are available

Compliance Workbook• Chapter 1 – Reference Guide section• Adjust wording for LAP





• Noncompliance


Last – VITAL – Labor Interviews


LABOR INTERVIEWS


WHEN CONTRACTS INCLUDE REQUIREMENT OFDAVIS BACON & RELATED ACTS/DBRA…

CERTIFIED PAYROLLS ARE DUE.

LABOR INTERVIEWS ARE CONDUCTED.

HOW MANY PER MONTH?

WHAT’S THE NUMBER BASED ON?



Labor Interview - FDOT Form 700-10-63

• Conducted by Administrative Team• Start with Section H - Observation• Private interview• Employee is asked. Interviewer records.

• Monthly• Interview Prime and all Subs, Temp Agencies,

Rental Agreement Operator



Labor Interviews --Form 700-10-63

• SECTION A -- RCSRCS completes the header Section A with project information. Provide copies for those who will interview.

• SECTION B -- INTERVIEWERInterviewer gives full name, signature, employer and date.



Labor Interview FDOT Form 700-10-63

• SECTION H• Describe Employee’s work observed

• SECTION I• Describe Tools or Equipment used

• SECTION J• Interviewer Comments

• SECTION 1 – Now start the Interview


Labor Interview --Form 700-10-63

• SECTION 1• EMPLOYEE information and signature

• SECTION 2• Job and Pay data supplied by Employee

• SECTION 3• Deduction data supplied by Employee

• SECTION 4• Fringe data and comments by Employee


Labor Interview – Form 700-10-63Interviewer gives to RCS promptly. • SECTION D – RCS Review

• RCS gives name and date.• Number L – As indicated in Observation (H

and I) without regard to payroll.• RCS compares with payroll & Daily Work Report• Follow up as necessary


Labor Interviews – RCS reviews thoroughly and follows up

BEST PRACTICES:• Conduct Interviews at start of month AND • First day of a contractor on site• Do Labor Interviews along with CUF Observations

on DBE’s.• DWR states, “Labor Interview performed.”• RCS files AND tracks interviews (log or list)

Labor Interviews – RCS reviews thoroughly and follows up

WHAT DOES REVIEW THORUOUGHLY MEAN?

FOLLOW UP ON …….ANY DIFFERENCES WITH PAYROLLSOR DAILY WORK REPORTSOR KNOWN DATA


HAPPY!


COOL!

SMART!

Documents

CERTIFIED PAYROLLS - Florida Department of … · •PRIME SUBMITS ALL CERTIFIED PAYROLLS TO THE PROJECT RCS. •Collects from its subcontractors •PRIME IS RESPONSIBLE FOR PAYROLL