What is a Certified Payroll Report?
A report comprised of two components, a payroll report and a statement of compliance report.
The payroll report (Excel, 41 KB) provides the contractor the ability to demonstrate how an employee was classified, the number of straight time and overtime hours worked by an employee in a particular labor classification, along with the hourly straight time and overtime wages paid to an employee.
The statement of compliance report (Word, 52 KB) provides the contractor the ability to demonstrate whether it did or didn’t provide fringe benefits to an employee. Additionally, it requires that the contractor attest that the information provided on both reports is truthful and accurate.
If a contractor does not wish to utilize the payroll report provided by MnDOT, the contractor may utilize its own payroll report, as long as it contains all required information.
Instructions and examples of how to properly complete a payroll report and/or statement of compliance report are available to contractors that need clarification.
The payroll report and statement of compliance report are legal documents; willful falsification of one or both of the documents may result in civil action and/or criminal prosecution.
Who should submit a Certified Payroll Report?
A contractor that performs work under a construction contract that is funded in whole or in part with state and/or federal funds must submit a certified payroll report. However, an individual that is a "bona fide" independent truck owner/operator is exempt from the certified payroll report requirements; the work that this individual performs will be reported by a prime or subcontractor on a MnDOT Month-End Trucking Report.
Is there an online certified payroll training that I can take?
Yes, an interactive e-learning tool is now available to provide contractors with an understanding of the state and federal prevailing wage laws and how to properly complete a certified payroll report.
How often does a Certified Payroll Report have to be submitted?
State submission requirements
A contractor that performs work under a construction contract that is funded in whole or in part with STATE FUNDS ONLY must submit a certified payroll report to the contracting agency within 14 days after the employee has been paid. The employee must be paid unconditionally and not less often than once every 14 days.
Federal submission requirements
A contractor that performs work under a construction contract that is funded in whole or in part with federal funds must submit a certified payroll report to the contracting agency within 7 days after the employee has been paid. The employee must be paid unconditionally and not less often than once a week.
What are the responsibilities of the prime contractor?
A prime contractor shall collect and maintain certified payroll reports from all first and second tier subcontractors. The prime contractor shall thoroughly examine the first two reports submitted by each subcontractor and a random review thereafter to ensure that the certified payroll reports are accurate, complete and a true representation of the work performed.
The prime contractor shall utilize a payroll Tracking Form (Word, 66 KB, 8.5 x 14) to ensure that all subcontractors have submitted certified payroll reports.
How long does a Certified Payroll Report need to be kept?
The prime contractor must retain its certified payroll reports, along with those of its subcontractors for a period of three years after the certificate of final acceptance has been executed.
What happens if a Certified Payroll Report is not submitted?
If a prime contractor or a subcontractor fails to submit a certified payroll report to the contracting agency, the project engineer may withhold a portion of one or more partial estimates until the reports are received. In addition, contractors that fail to submit certified payroll reports could be subject to a penalty pursuant with Minnesota Statute 177.30 Subdivision (b).