4. Wage Decision

All Subcontractors must have a copy of the wage rates as well as the Federal Labor Standards Provisions. These should be a part of all contracts between the Prime Contractor, Subcontractors and Lower-tier Subcontractors.

5. Additional Classifications

Residential wage decisions usually contain only the most commonly used classifications (i.e., Carpenter, Laborer, Electrician, etc.). The criteria for establishing additional classifications and rates are outlined in the attached copy of 29 CFR, Part 5.5(a)(1)(ii). Generally, rates at least equal to the lowest craft rate on the wage decision will be approved for craft additional classifications.

Please submit a signed letter listing additional classifications and rates you will require. Upon review these will be submitted to the U.S. Department of Labor (DOL) for approval. Additional Classification rates are not official until approval is received from DOL. This process takes 30 to 45 days.

6. Subcontractors

The Prime Contractor must furnish a list of all Subcontractors and update it as necessary (form attached). Also attached are guidelines for owner-operator (self-employed) Subcontractors. All Subcontractors and Lower-tier Subcontractors must furnish weekly payrolls.

7. Sample Payrolls and Instructions for Completion

A sample WH-347 and WH-348 and two instructional aids for filling out payrolls and the Statement of Compliance forms are attached.

8. Permissible Payroll Deductions

A memorandum outlining permissible deductions is attached. All other deductions are not acceptable unless approved by U.S. DOL. Voluntary deductions (health insurance, retirement, etc) must be documented with the workers written authorization.

9. Authorization To Sign Payrolls

Unless the owner/corporate officer signs payrolls, all contractors must submit a letter stating who in the firm is authorized to sign the certified payrolls. More than one person in a firm may be authorized. A new letter must be submitted when the authorization changes from one individual to another.

10. WH-347 Payroll Form and No Work Performed Statement

All original payrolls are to be submitted within seven days of the reporting period to the Prime Contractor. The Prime Contractor submits all payrolls to the agency representative.

Include full name, address, and social security number on the first payroll on which the employee appears. After that, unless there is an address change, only the name and social security number is necessary.

"Work Classification" must be one that is shown on the wage decision or additional classification form.

Show hourly wage paid, daily and total weekly number of hours worked and allowable deductions (FICA, state taxes) on every payroll. If "other" deduction box is used, be sure to describe the deduction in detail on the face of the payroll. (Refer to previous attachment for allowable deductions and INSTRUCTIONS FOR COMPLETING PAYROLL FORM, WH-347, Column 8 & 9.)

Depending on whether fringe benefits are paid into a third-party trust or in cash, check box "a" or "b" on the back of the form. If a combination of "a" and "b" is used, explain in detail in box "c." If these are not checked, we will assume they are paid in cash.

Payrolls must be submitted weekly as employees must be paid weekly. If payrolls are numbered consecutively, "no work" payrolls or letters are not required. Where there are gaps between non-consecutively numbered payrolls, contractors should either state on the first payroll following such a gap that to the best of his/her knowledge, no employee worked on the project during the gap or submit the attached "No Work Performed" statement for each gap. Indicate "initial" on the first payroll and "final" on the last one.

The payroll form may be copied with the repeating information (name of project, names and addresses of employees, name of firm, etc.) entered on the "master." All payrolls submitted must have an original ink signature. The signature may not be copied or stamped.

For computerized payrolls, make sure all data on the WH-347 is shown on the printout. Often, the trades and days and hours worked are entered by hand. Attach a completed WH-348 or the reverse side of the WH-347, to the computer printout.

11. Employee Interview Form (HUD-11)

This is the form used by the project inspector to make on-the-job interviews. Interviews are compared to payrolls to ensure they match the payroll data. Please alert employees that they may be interviewed. All interviews are confidential.

12. Poster(s)

Post the attached poster(s) on the job site in a conspicuous place along with the wage rates, including any additional classification rates.

13. Authority Ladder

The Prime Contractor is responsible for reviewing all payrolls before submitting them to the agency representative. Feel free to use this sample as a guide for reviewing payrolls submitted by Subcontractors and Lower-tier Subcontractors. Please try to submit as correct as possible payrolls by requesting corrections from Subcontractors before submitting to the agency representative. This process may delay submittal to the agency representative; however, late, corrected payrolls are better than timely submitted incorrect ones that will have to be returned for correction. If it becomes apparent to the agency representative that the Prime Contractor is not reviewing payrolls, they may be returned to the Prime Contractor for review and resubmission prior to further scrutiny.

The agency representative contract is with the Prime Contractor. Therefore, Subcontractors should address the agency representative through the Prime Contractor and Lower-tier Subcontractors should go through the respective Subcontractor with whom they have a contractual agreement. Normally, Subcontractors and Lower-tier Subcontractors should not contact the agency representative directly.