Certified Payroll Requirements
Blank certified payroll
forms WWS-CP1-2 and sample copies are included in this guidebook.
The state certified payroll
forms may be downloaded from the Department of Labor, Wage & Workplace
Standards Division Website:
form is in an adobe "fillable" format)
Federal certified payroll
forms or out of state certified payroll forms do not meet the requirements
of Connecticut General Statutes, Section 31-53(f) and cannot be used on
projects covered under C.G.S. Section 31-53.
Computerized forms are
acceptable provided they contain ALL the information requested on the
Connecticut form. We recommend that you submit your computerized form
to this department for approval prior to use.
Effective October 1, 1997, Public Act 97-263 requires weekly
certified payrolls and compliance statements to be filed on a monthly
basis with the contracting agency.
Effective: October 1,
2009, Public Act 09-25 mandates that certified payrolls must now be
completed weekly and filed monthly “by mail, first class postage
prepaid” to the contracting agency.
certified payrolls can still be processed through the existing format:
Mailed with their requisition to whom ever that
contractor has a contract with.
Then each contractor level continues to submit
the certified payrolls up the contractor chain until they arrive at the
contractor level should retain the envelope the certified payrolls were
submitted in by stapling it to the applicable certified payroll as
verification of compliance.
Certified Payrolls must be
filed for Each Week, once work has been started on the project, even when NO
Work is performed. If NO Work is performed for the entire month, this
department will accept the filing of one certified payroll for entire month.
Please note that
contractors do not list a worker’s social security number on the state
certified payroll forms. These certified payrolls
shall be considered a public record, and every person shall have the right
to inspect and copy such records in accordance with the provisions of
Connecticut General Statutes, Section 1-15.
The Certified Statement of Compliance must be signed by
owner is either: individual owner, major or equal officer of
corporation, equal partner, or LLC managing or equal members only.
stamp, photocopy, or electronic signature is not acceptable.
No employee can be
authorized to sign on the owner’s behalf.
What are you required to submit when the project is covered
by both State prevailing wage and Federal Davis-Bacon prevailing wage
A Department of Transportation project that is also
covered under the Federal Davis-Bacon Act requires you to submit both
the State of Connecticut Certified Payroll form WWS-CP1 and the U.S.
Department of Labor Form WH-347.
Federal Stimulus Money for ARRA work that is being
performed on any state or municipal project, which exceeds the state’s
monetary thresholds, requires you to submit both the State of
Connecticut Certified Payroll form WWS-CP1 and the U.S. Department of
Labor Form WH-347.
To eliminate the
necessity of completing two (2) separate certified payroll forms for
each week, you may complete the front page of the State WWS-CP1
certified payroll form to report the time and wage information.
Submit both state
and federal compliance certification statements (signing 2 separate
Include a separate
detached sheet listing the worker’s names and the last four digits
of the worker’s social security number.
On Connecticut Department
of Transportation (CONNDOT) projects only, contractors are required to
report ALL WORKERS under Section B who perform work on site but ARE NOT
covered under the prevailing wage requirements. Example: Engineer,
architect, project manager, surveyor, balancing technician, security guard,
fire watchman, etc.
The time and wage information needs to be reported for Section B workers,
but is not required to be paid at prevailing wage if the work they are
performing is not covered under any laborer or mechanic classification
listed on the prevailing wage rate schedule.
Any questions regarding the
use of this form may be directed to the Wage & Workplace Standards Division
at (860) 263-6543.
Discharging Fringe Benefit Obligations
DISCHARGING FRINGE BENEFIT OBLIGATIONS UNDER THE
FEDERAL DAVIS BACON ACT, PART 5
Discharging Fringe Benefit Obligations = FB
Paid in cash.
Incurring cost for
"bona fide" fringe benefits.
By a combination
of the above.
Contractor/Subcontractor can pay less than the required
minimum hourly wages as long as hourly rate plus fringe benefit equals
the total required.
Crediting of FB Payments: (Reg. 5.5(a)(1)(I))
Contributions to FB plans must be made not less often than -
Payments or cost incurred must be made in the hourly rate
specified for each individual performing covered contract work.
FB's must be "bona fide"; those common to the
construction industry. No credit can be taken for any benefit required
by law (social security contributions or workers compensation, etc.)
under payments have been determined, contractor/subcontractor can be
allowed to make payments to a bona fide FB plan on behalf of the
underpaid employees (15f10).
Cash Equivalent Credit for FB payments: Period of time to
be used is the period covered by the contribution.
Contractor/subcontractor may offset
annual cost by converting costs to an hourly cash equivalent
Cost of FB divided by total number of working hours (both covered
and noncovered hours since contractor/subcontractor’ s cannot use
contributions made for non-government work to discharge or offset their
obligations on covered work) (15f1 1). If the amount of contribution
varies per worker, credit must be determined separately for the amount
contributed on behalf of each worker(e.g. Single insurance coverage
versus family coverage). contractor/subcontractor can use
"previous" year's experience for total hours worked for a benefit paid
for in advance (or for one that he/she anticipates to pay) as long as
comparison or period chosen is reasonable.
Workers excluded from a plan for whom
contractor/subcontractor makes no contribution or incurs no cost must be
paid in cash or furnished other bona fide FB's equal in monetary value.
If plan requires contributions to be made during eligibility waiting
period, credit may be taken, but no credit is allowed for contributions
for workers who by definition are not eligible to participate (due to
age or part-time employment) (15f12).
Pension profit Sharing Plans = PSPs (15f13).
Contributions must be irrevocably made to a trustee or a
PSPs are not usually creditable towards meeting
contractor/subcontractor 's prevailing wage obligation.
made annually they would not meet quarterly requirement (or
contractor/subcontractor must contribute irrevocably to an escrow
Vesting provisions are allowed if they meet the
requirements of the Employee Retirement Income Act.
Contractor may not use forfeitures (FB monies contributed
on behalf of terminated, non-vested participants) as credit toward
meeting FB obligation.
Defined Contribution Pension Plan: Contributions are
fully credited if plan provides for immediate participation & immediate
vesting (= 100% vesting if 500 hours or less is worked). When
there is no immediate vesting, credit is allowed based on the effective
annual rate of contributions for all hours worked during the year. (e.g.
$2,000.00 contribution made on behalf of particular worker who worked a
total of 2000 hours (covered and non-covered hours) would result in a
credit of $1.00/hour).
Vacation, holiday, & sick leave plans: Generally
"unfunded plans" if paid by a contractor "out of pocket", credit
must be given for such payments.
worker is terminated before the benefit is received and
contractor/subcontractor has taken a credit toward the prevailing wage
FB obligation, the worker must be paid at termination.
Costs incurred by an contractor/subcontractor for a bona
fide apprenticeship program are creditable toward FB obligation (cost
must be incurred for classification in which the individuals are
working); 15f16© uses the following example:
|$450.00 fee to
enroll an employee in an apprentice training program for carpenters;
45,000 hours is total (covered and non-covered) worked by carpenters
and carpenter's apprentices (contractor's cost may not be offset
cover a period longer than the training period the cost was intended
to cover); E entitled to a credit of .0 1 /hour against prevailing
wage FB obligation for all carpenters and carpenters' apprentices
working on the project. Full credit could
probably be taken on behalf of individual enrolled
divided by 2000 total hours worked equals .23/hour credit.
Benefit portion of the wage must be paid for hours worked
on a covered project, but it would not be included in the calculation of
the overtime premium ...
contractor/subcontractor who is self-insured: can use
previous year's experience (if it is reasonable)
Average cost/employee =
of employees covered
Absolutely, no third party administering
costs are allowed.
Fringe Benefit Credits Recognized by the STATE
For the purposes of
prevailing wage, Bona Fide Fringe benefits are health and welfare benefits
only irrevocably paid by the contractor/subcontractor. Any payments
required by state or federal law are not considered benefits.
benefits provided do not equal or exceed the published fringe benefit rate,
the contractor must pay the balance as a “cash” payment combined to the
worker’s base rate and reported as a taxable wage.
Bona Fide prevailing wage Fringe Benefits include:
Medical or Hospital
Disability Insurance (not worker’s compensation)
(paid no less frequently than quarterly)
contributions (paid no less frequently than quarterly)
Vacation, Paid Time Off (policy must be non-forfeitable)
Unemployment Benefit Plan (must be annualized)
Costs incurred for
OSHA-10 training (if paid by the contractor)
Fringe Benefits that cannot be credited towards prevailing
Payments not considered
Fringe Benefits because they are required by State or Federal law:
Social security and
State income tax
Overtime at “Blended Rate” and “Rate In Effect”
Method #1: Blended Rate
Premium overtime is
required to be paid at one and one-half times the worker’s average hourly
rate of pay for all hours physically worked that exceed 40 hours in a
workweek. The contractor must establish a standard 7-day workweek.
Under the blended rate
computation, an employer must first pay all straight-time wages by
multiplying each straight-time rate by the physical hours worked at that
rate, however few or many rates there may be. Then, divide the total
earnings by the total hours worked to obtain the blended hourly rate.
Next, multiply the hours in excess of 40 by ½ times the blended hourly rate.
The worker’s total earnings equals a combination of all straight-time pay
and the ½ time overtime pay calculated. This same formula is used regardless
of the number of jobs, rates, and nature of payments in any given week.
When computing the blended
rate, each week is a separate calculation based on the varying number of
hours worked at each rate of pay.
Method #2: Rate in Effect
In addition to the formula
outlined above, a contractor can establish a policy, in writing, and compute
premium overtime wages on the basis of the rate in effect for the job the
worker is physically performing after the 40th hour physically worked.
However, for an employer to be permitted to use this method of calculation,
the worker’s hours must truly fluctuate from job to job and from week to
week among the different classifications. The employer must provide
the worker with a written hiring agreement or a written contractual
agreement, in accordance with C.G.S. Section 31-71f, stating the worker’s
rates of pay and formula for computing overtime. ***
This formula CANNOT be used where the worker is removed from
the prevailing wage job during overtime hours.
Rate in Effect allows the
contractor to clearly establish all straight-time rates of pay and all
overtime rates of pay in their payroll for purposes of calculating wages
due. ****** The contractor must establish the use
of either method #1 or method #2 for the entire period of employment and
cannot switch back and forth between the two methods.
For instance, a machine
operator paid $18.00 per hour sometimes works as a laborer in the warehouse
for $15.00 per hour, overtime (work after the fortieth hour in the workweek)
can be paid at $18.00 X 1.5 = $27.00 per hour when working as a machine
operator, and 15.00 X 1.5 = $22.50 when working as a laborer.