Common Mistakes to Avoid When Completing a Certified Payroll Report

1.     Incorrect Occupational Title:  
A common mistake made by Contractors and Subcontractors is listing an Occupational Title that is not on the defined list included in the Annual Wage Order issued with a project or by omitting the sub-classification of a particular Occupational Title.  For example, a Laborer has a sub-classification that includes General, First Semi-Skilled or Second Semi-Skilled. The appropriate way to identify the Occupation Title would be to list the Occupational Title and the sub-classification.  In the case of a First Semi-Skilled Laborer, the correct way to identify this would be to include "First Semi-Skilled Laborer"  This rule applies to Operating Engineer, Truck Driver-Teamster and any other Occupational Title that has sub-classifications listed.

2.     Incorrect Hourly Rate of Pay:
Each Occupational Title on the defined list of the Annual Wage Order includes a Basic Hourly Rate as well as Fringe Benefits.  A common mistake made on certified payroll reports is including an incorrect hourly rate of pay.  If this error occurs, the Contractor or Subcontractor is responsible for making wage restitution to their employees and are required to submit a revised or corrected payroll report.  The Contractor or Subcontractor may also be responsible for submitting proof of the wage restitution by submitting a copy of the employee paystub.  To avoid making this mistake, verify that the employee's hourly rate of pay, fringe benefits, and exceptions total the hourly wage and fringes included on the Annual Wage Order.  The Contractor or Subcontractor should determine the following to help verify that correct payment has been made to their employees:

 a.      Verify that the hourly rate of pay meets the minimum for the Occupational Title defined on the Annual Wage Order.

b.      Determine if employee fringe benefits will be paid through an approved plan or to the employee in cash.

       i.     If paid through an approved plan, determine if the approved plan will cover the entire amount of the fringe benefits or if there will be a deficiency.  If the approved plan will cover the entire amount of fringe benefits, list these benefits in the Fringe Benefit Chart.  If the approved plan will not cover the entire amount of fringe benefits, list the deficiency in an attached Exceptions Chart.

        ii.     If fringe benefits will be paid in cash, verify that the amount of the fringe benefits to be paid in cash is listed correctly under the "Fringe Amount Paid in Cash Added to Rate of Pay" column on the payroll summary and that it meets the minimum for that Occupational Title on the Annual Wage Order.

3.    Lapse in Weekly Payroll Reports:
Any Contractor and Subcontractors are required to submit a Certified Payroll Report each week, even if no work was performed. If no work was performed, Contractor and Subcontractors are required to submit a "No Work" Payroll Report.  

4.    Listing Owner as an Exempt Employee: 
Any Owner or Partner of a company is covered under the Missouri Prevailing Wage Law when performing construction work and is therefore required to be reported on the certified payroll report.  If a Contractor or Subcontractor has listed "Owner" or "Partner" as the occupational title on the Payroll Summary of the Certified Payroll Report and has not indicated a rate of pay or fringe benefits payment, they will be required to submit a corrected Certified Payroll Report. The Contractor or Subcontractor will be required to select an Occupational Title from the defined list on the Annual Wage Order and enter the required rate of pay and fringe benefits.